Continental to expand India biz with Emitec acquisition

 

Germany-based Emitec has good presence in India too. It has a production facility in Pune in addition to the manufacturing plants in Germany, France and United States of America. Continental expects good returns in the Indian two-wheeler and commercial vehicle sectors with the acquisition of Emitec

Global automotive component maker and technology giant Continental said the acquisition of Emitec will help it to expand its powertrain business across the world including in the emerging markets like India.

Emitec produces metallic diesel particulate filters for vehicles and metal substrate for exhaust gas catalysts. Its product portfolio also includes high technology products for selective catalytic reduction (SCR).

Continental said the acquisition will help it to expand its portfolio in powertrain sector globally. The company believes the acquisition will drive it to acquire more business in the Indian two wheeler and commercial vehicle sectors, which are looking for advanced powertrain technologies on the back of stringent emission norms implemented by the Indian government in recent years.

In a statement, the company said it has announced the 100 percent ownership of the joint venture with Emitec Emission Control Technologies in 2014.

Germany-based Emitec was formerly a 50: 50 joint venture company of Continental and GKN. The acquisition facilitates Emitec to be integrated into powertrain division of Continental and merge with Business Unit Fuel Supply (FS) to create a business division Fuel and Exhaust Management (FEM).

The powertrain division of Contienntal design and produce various solutions for vehicle powertrain segment. Its product portfolio includes in the areas like fuel supply, gasoline and diesel injection, exhaust aftertreatment system, engine management and transmission, sensors, actuators and solutions for hybrid and electric driven vehicles.

The acquisition of Emitec will strengthen Continental’s abilities in powertrain sector and facilitate it to provide comprehensive solutions covering exhaust-gas aftertreatment systems.

Dr Markus Distelhoff, Head of FEM, said the continental’s worldwide production sites provide expansion opportunities for Emitec’s products. Emitec has a good presence in the commercial vehicle and two wheeler segments. This will help Continental to explore new market sectors. The Indian two wheeler market, for instance, offers good opportunities for FEM, Distelhoff said.

Claude d’Gama Rose, MD of Continental Automotive Components India, said the stringent emission norms worldwide increases the requirement for SCR system in the commercial vehicle sector. Especially the Indian government’s implementation of Bharat Stage IV will drives up the demand for SCR technologies in the Indian commercial vehicle segment, which inturn will create new business opportunities for FEM.

Continental’s revenue stood at € 34.5 billion in 2014 with its five divisions engaging a workforce of two lakh people spread across 53 countries. The company’s powertrain division alone employs around 34,500 people across the world and witnessed sales of around € 6.5 billion in 2014.