14.09.2007

Palfinger in Indian joint venture

Palfinger has today entered into a distribution joint venture agreement with a leading automobile trading company active in India, Western Auto Dubai, owned by the ETA-Ascon Group.

The joint venture will comprise import, marketing, distribution and service for selected Palfinger loader cranes. The ownership split is Palfinger Asia Pacific Pte, 26 percent, Western Auto, 23 percent and Hameed Salahuddin, a member of the family that owns Western Auto, 51 percent. The initial investments of both parties is €1.2 million.

Palfinger has been represented by a subsidiary in Asia since 2006. In addition to the headquarters in Singapore, the Group operates an assembly plant for container handling systems in Shenzhen, China.

Palfinger sales in Asia increased by 38 percent during the first half of 2007. “We see enormous market potential here. Therefore, it is important to be present from the beginning and to participate in the development of the market. This is an essential investment in the future,” said Wolfgang Anzengruber, CEO of Palifinger.

According to Palifinger, India is an interesting market, not only due to its size but also to its rapid growth rate of 8.6 percent. After Japan and China, India is expected to develop into the third most important country in Asia from an economic standpoint.

“We are pleased to have found Western Auto as a partner with whom we can jointly participate in the building up of the market in India. Our primary goal is to create a foundation for the expected increase of demand in the following years”, said Christoph Rauch, managing director of Palfinger Asia Pacific.

Western Auto also sees the agreement as a forward-looking investment: “We are among the leading dealers in India and we are witnessing an increasing demand in this area. The joint venture with Palfinger is a good enlargement and an opportunity to service this growing segment.”

Western Auto is part of the ETA-Ascon-Group. The Group is based in Dubai and currently records annual sales of around $4 billion with a staff of more than 40,000. In India, the Group is active in the business segments of construction, transport, real estate and automotives.