"The Ammann Group now holds a controlling stake of 70 per cent in erstwhile the consolidated road construction equipment business of the Apollo Group," the Gujarat-based company said in a BSE filing.
Family-run Ammann is a globally leading manufacturer of asphalt mixing plants, compaction machines and asphalt pavers and has manufacturing plants in Europe, China and Brazil.
This investment marks the entry of the Ammann Group into the Indian market for road construction equipment.
"The Apollo Group is the market leader in India in the manufacture of road construction equipment and this joint venture will give Ammann a head start in its expansion plans into India," it said.
To form the joint venture, GAILBSE -1.14 % and its wholly-owned subsidiary, Apollo Earthmovers Limited (AEML) have transferred their respective identified businesses to Apollo Construction Equipment (ACEL) on slump sale basis.
"Entities forming part of the Ammann Group have acquired fresh equity shares of ACEL such that their shareholding in ACEL, (which will be known as Ammann Apollo IndiaBSE -3.90 % ), is 70 per cent and the balance 30 per cent shares of ACEL are now held by AEML," the release said.
The joint venture would remain responsible for product sales in India, while Ammann Group would now market the Apollo products worldwide.
The Apollo Group would utilise the proceeds realised by GAIL and AEML, towards the advancement of its crushing and screening business and in pursuing diversified business activities to continue to build value for its shareholders.