subscribe to ENR magazine subscribe
contact us
advertise
careers industry jobs
events events
FAQ
Mcgraw Hill Construction
ENR Logo
SUBSCRIBE TODAY
& receive immediate web access
comment

Ammann To Acquire Big Stake in India Roadbuilding Sector

Text size: A A
----- Advertising -----

Even as the world economy shows strains, India’s construction equipment industry is looking at signs of revival in its roadbuilding segment. As an indication that foreign investment is returning to the subcontinent, Swiss buildings equipment company, Ammann Group is planning to acquire a 70% share in Gujarat Apollo Industries Ltd., a leading Indian manufacturer of road construction equipment and materials plants.

 

Schneider
Ammann Group will invest $51 million in Apollo's core business of asphalt mixing plants, road pavers, bitumen sprayers and compaction machines. The transaction will create a new company, Ammann Apollo India Private Ltd., responsible for the sale of the Ammann product range in the region.

As part of Ammann Group's planned global expansion, the investment is set to take effect in April once necessary regulatory approvals have been concluded.

"The proposed investment marks the entry of a prominent global player into the Indian road construction equipment market, which is expected to grow in view of the policy thrust of the government on increasing the road network across the country," Gujarat Apollo said in a statement to stock exchanges in late December.

KPMG India Executive Director Arvind Mahajan said the deal is a strong indication of the potential of India's infrastructure sector.

More global equipment manufacturers are set to strengthen their presidence in the Indian construction market through joint ventures and collaborations with domestic companies, according to a report from Delhi-based market consultant RNCOS.  It predidcts As a result, the industry is expected to witness a Delhi-based consultancy RNCOS report says.

The market value of equipment is estimated to be more than $6.5 billion by 2014, with the earthmoving sector alone valued at $3.7 billion, says the firm. It predicts compound annual growth rate of 20% from 2011-2015.

Construction equipment demand could rise to around 100,000 units during 2014 to include backhoe loaders, crawler excavators and dozers, wheel loaders, asphalt pavers, motor graders, air compressors, dump trucks, concrete and asphalt batching plants, concrete pumps, piling rigs, compactors, and mobile cranes.

The family-owned Swiss firm also announced that, as of Jan. 1, Deputy CEO Hans-Christian Schneider has assumed the CEO role. He is the sixth generation of family members to run the 143 year-old company with 2,900 global employees.

Schneider takes over from Ulrich Meyer, who has been in charge of the Ammann Group since 2010, and now joins its board of directors.

Keywords:

----- Advertising -----
  Blogs: ENR Staff   Blogs: Other Voices  
Critical Path: ENR's editors and bloggers deliver their insights, opinions, cool-headed analysis and hot-headed rantings
Project Leads/Pulse

Gives readers a glimpse of who is planning and constructing some of the largest projects throughout the U.S. Much information for pulse is derived from McGraw-Hill Construction Dodge.

For more information on a project in Pulse that has a DR#, or for general information on Dodge products and services, please visit our Website at www.dodge.construction.com.

Information is provided on construction projects in following stages in each issue of ENR: Planning, Contracts/Bids/Proposals and Bid/Proposal Dates.

View all Project Leads/Pulse »

 Reader Comments:

Sign in to Comment

To write a comment about this story, please sign in. If this is your first time commenting on this site, you will be required to fill out a brief registration form. Your public username will be the beginning of the email address that you enter into the form (everything before the @ symbol). Other than that, none of the information that you enter will be publically displayed.

We welcome comments from all points of view. Off-topic or abusive comments, however, will be removed at the editors’ discretion.