OREANDA-NEWS. Renault-Nissan Alliance and AvtoVAZ will combine their procurement activities in Russia since January of 2015. New purchasing organization AvtoVAZ-Renault-Nissan (ARNPO) will deal with procurement for all three partners in Russia in accordance with international standards of Renault-Nissan Purchasing Organization (RNPO). RNPO that was founded in 2001 is responsible for all procurement for Renault and Nissan in the world and it is one of the most important components in the strategy synergies of Renault-Nissan.

ARNPO will take over the activities of the joint purchasing organization (NWB), created by RNPO and AvtoVAZ in September of 2013 to manage the procurement on joint projects of the three companies in Russia. It became affiliated structure of RNPO, as a result of the acquisition of 49% stake RNPO of NWB from AvtoVAZ then the share of RNPO in the company increased to 99%. Increasing of the share of RNPO in NWB was approved by the Federal Antimonopoly Service of Russia. In January NWB will change its name to the purchasing organization of AvtoVAZ-Renault-Nissan (ARNPO) and it will combine individual purchase structures of the three partners in Russia.

As it was noted, the institution ARNPO was another step of closer cooperation between the three companies, which began in 2008, when Renault acquired a 25% stake in Russia's largest carmaker. Today, Renault-Nissan Alliance has 67.13% of shares of the joint venture, which controls AvtoVAZ. Currently in Togliatti, where one of the largest car plants of the world works, partners produce cars of four brands: Lada, Renault, Nissan and Datsun.

By combining the procurement operations of Renault, Nissan and AvtoVAZ, ARNPO will become the largest buyer in the Russian automotive industry and it will contribute the further integration of AvtoVAZ into a global industrial sector.

The main tasks of ARNPO will be: purchase of parts, equipment and tools, as well as purchases through intermediaries, including services for AvtoVAZ, Renault and Nissan; quality control and development of suppliers; introduction of uniform procedures of RNPO for selection and improvement of local supplier base in Russia for access to world standards in quality, cost, delivery, development and production, as well as for the further integration of Russia into the global automotive market.

ARNPO will be legally structured as a limited liability company with headquarter in Togliatti, with branches in Moscow, Izhevsk and St. Petersburg. Mr. Venkatram Mamillapalle, vice president of AvtoVAZ of procurement will be appointed as the CEO of ARNPO in January of 2015. The new structure will combine together Russian employees from Renault, Nissan and AvtoVAZ.

Mr. Venkatram Mamillapalle received a Bachelor of Engineering at the University of Madurai Kamradzh. He has extensive experience in procurement, materials management and external logistics, supplier development, logistics and technological design for suppliers. Mr. Mamillapalle worked in Tata Motors (Senior Vice President, Head of Purchasing and Supply Chain), General Motors Korea (vice president of procurement and supply chain), Lombardni India, Delphi Automotive Systems and Eicher Tractors.