Ammann’s Successful Entry into India
Ammann, a leading manufacturer of asphalt mixing, concrete mixing, and mineral processing plants, as well as compaction machines and pavers, successfully entered the Indian market with the help of Maier Vidorno Altios.
– 2000: Ammann conducted extensive market intelligence for their products in India.
– 2007: They carried out a market study and developed entry strategies with Maier Vidorno Altios, marking their first contact with Indian manufacturer Apollo, a leader in road construction equipment in India.
Understanding Local Dynamics
When entering the Indian market through acquisition, businesses must have a clear understanding of local regulations, market dynamics, and cultural nuances. Working with local advisors can help companies to navigate the complexities of the Indian business environment and conduct thorough due diligence on potential acquisition targets.
You have to be able to trust each other completely and treat each other as equal partners, even in our case where we owned 70 per cent of the company. All decisions within the joint venture were always made by mutual agreement.
Benefits of Manufacturing in India
In 2012, Ammann decided to enter India and announced a Joint Venture with Apollo, planning to invest $51 million (€47 million). By 2013, they opened the JV with a 70% Ammann majority share. One of the key advantages of producing in India for manufacturers is the cost-efficiency and access to a large pool of skilled labor.
However, without proper due diligence, businesses may face challenges such as regulatory compliance issues, financial discrepancies, or operational inefficiencies that can impact the success of the acquisition.
The Joint Venture has been a profitable business since its inception, with growth in India and exports. Ammann Apollo has established their factory and headquarters in Ahmedabad with “Western standards” focusing on increasing efficiency and training.
Through learnings from the JV in India, Ammann has succeeded in entering new markets internationally with adapted products manufactured in India. Ammann saw entry into India as a strategic stepping stone for entry into other markets:
How Maier Vidorno Altios Can Help You
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Due diligence is an essential step in the business acquisition process in India. It helps businesses identify potential risks, make informed decisions, and ensure the success of their acquisition deal. By working with local advisors and conducting thorough research, businesses can mitigate risks and maximize the opportunities that the Indian market has to offer.
For expert advice and support in navigating the Indian business landscape and conducting due diligence for your acquisition deals, contact Maier Vidorno Altios. Our extensive experience and local knowledge will ensure your business success in India.
M+V Altios invites you to fill out an assessment specifically designed for foreign companies to conduct basic due diligence before making a business acquisition while entering India. Upon completion, a member of our team will reach out to discuss your results.
This questionnaire aims to provide a comprehensive understanding of the target company’s financial health, market position, operational dynamics, and legal standing, facilitating informed decision-making during the acquisition process.
