Bengaluru: Manufacturing platform Zetwerk and US power equipment maker Ayr Energy have accused each other of stealing confidential information, escalating a cross-border legal battle over their competing transformer businesses.Ayr has filed complaints before the US International Trade Commission (ITC) and the Texas Business Court, alleging that Zetwerk and its affiliates used stolen trade secrets to build a transformer business in the US.The dispute comes as Zetwerk prepares for its India IPO. The company recently received Sebi’s observations for its proposed issue and is expected to raise Rs 4,000-5,000 crore, according to sources.In its ITC filing, Ayr has sought an investigation and a ban on imports of transformers it claims were made using its proprietary information. In Texas, it is seeking at least $1 billion in damages and an injunction. The allegations have not been adjudicated.Ayr also alleged that Zetwerk placed an employee inside the company under false pretences to gain access to confidential information. According to the complaint, the individual left after six weeks, after which Zetwerk began marketing transformer capabilities it previously lacked.Zetwerk denied the allegations, saying they were filed after Ayr’s earlier lawsuit “found no traction” in a California court and was withdrawn.“This complaint comes right after Ayr’s own claim against the manufacturing platform Zetwerk collapsed. It was withdrawn after it found no traction in a California court,” a Zetwerk spokesperson said.Zetwerk said it had initiated the dispute by filing a lawsuit in Texas in Oct 2025 seeking $100 million in damages, adding that Ayr’s bid to have the case dismissed was rejected.“The origin of this dispute is that Ayr’s co-founder, Anirudh Reddy, incorporated the company while serving as a senior Zetwerk executive, then walked out with confidential Zetwerk documents. Our filings characterise this as plain theft,” the spokesperson said.Ayr has denied the allegations in Zetwerk’s earlier lawsuit. Zetwerk said it would contest Ayr’s latest claims in court.
