Milan, Italy -- Sundaram Industries, a member of the TVS Group and Novotema SpA, a leading producer of precision sealing and rubber components, have announced the creation of a joint venture for the manufacturing and distribution of a range of specialty elastomer parts for sealing applications in India.
Novotema, led by the CEO Costanzo Pederzani, is currently owned by the management and the private equity fund 3i. The company said this strategic joint venture is another step in Novotema's growth strategy and follows an intense period of organic growth since 2003, during which the company completed the acquisition of competitor FabelGom in 2006. In 2007 Novotema is expected to post consolidated sales of €40 mln.
Novotema, based in Villongo (near Bergamo, Italy)makes specialty engineered elastomeric products for sealing applications and has a large presence in the European market. The company specialises in the manufacturing and production of technologically advanced rubber products for a variety of applications that include automotive, electro-mechanical, water distribution, food and beverage, hydraulics, pneumatic, gas and household appliances.
Lorenzo Salieri, Partner of 3i Italy said: â€œIn an economic environment where large multinational companies tend to improve competitiveness through the acquisition of small businesses, the Novotema - Sundaram joint venture is a positive exception; the small Italian â€œDavidâ€ becomes an ally of the giant Indian â€œGoliathâ€ and together they embark upon a new path towards a new marketâ€.
â€œAsia and India in particular provide significant opportunities for European businesses - says Pederzani. India is already being used as a base for manufacturing at low cost. The real challenge for European companies is to build a local manufacturing and distribution presence in order to serve the growing Asian market. Our joint venture will allow us to combine the benefits of the advanced technological expertise of Novotema with the local presence and operational knowledge of Sundaram in order to meet the requirements of the Indian market. This is a market which is growing extremely quickly and is building very high expectations in terms of quality of products, delivery and costs.â€
Sundaram Industries Rubber Division, part of TVS Group - is a leader in the moulded rubber products with consolidated turnover of US $3 billion. The division specialises in the manufacture of quality rubber products from its facilities in Madurai and Gurgaon, serving a wide spectrum of applications including automotive, industrial, railways and other sectors. The company has won various Awards for Excellence in Manufacturing and Quality from organisations and customers across the globe. Sundaram Industries, branded as TVS RUBBER, also won the TPM Award for Operational Excellence in 2004 and the TPM Consistency Award last year. Both partners have chosen the temple-city of Madurai, to set up new premises with modern equipment and infrastructure. The facility will have a high degree of automation to ensure high productivity and reliability of products.