IPO-bound Zetwerk faces counterclaims in escalating US trade secret dispute
The ITC complaint, filed on July 16, names Zetwerk Manufacturing Businesses, Zetwerk Manufacturing USA, and subsidiaries Unimacts Global and KRYFS Power Components. It alleges violations relating to imports and US sales of transformers and components, and seeks orders restricting their import, marketing, and sale.
The commission has only acknowledged receipt of the complaint and invited comments on public-interest issues. It has not opened an investigation or made any findings on Ayr’s allegations.
In its counterclaims before the Texas Business Court, Ayr alleged that Zetwerk used an individual who joined Ayr under false pretences, accessed confidential transformer-related information, and left after six weeks before joining Zetwerk to lead a transformer delivery business. Ayr is seeking at least $1 billion in damages and relief. Zetwerk’s response is awaited.
The filings escalate proceedings initiated by Zetwerk and Unimacts in October 2025. Their lawsuit accused Ayr and founder Anirudh Reddy Edla, a former Zetwerk executive, of misusing customer lists, pricing information, business strategies, and technical documents to build a competing power equipment company. Zetwerk sought around $100 million in damages and injunctive relief.
In May, the Texas Business Court rejected Ayr’s request to dismiss parts of Zetwerk’s case at the pleadings stage. It held that Zetwerk had adequately pleaded certain breach-of-fiduciary-duty and knowing-participation claims, but did not rule on whether the allegations were true.
Ayr had separately sued Zetwerk and its affiliates in a California federal court in December 2025 over alleged false advertising and trademark violations. It voluntarily withdrew that case without prejudice on July 13.
“This complaint comes right after Ayr’s own claim against Zetwerk collapsed. It was withdrawn after it found no traction in court. The origin of this dispute is that Ayr’s co-founder, Anirudh Reddy, walked out with confidential Zetwerk documents. Our filings characterise this as plain theft. This latest complaint is Ayr’s answer to a case it cannot avoid. We will prove these allegations in court,” a Zetwerk spokesperson said.
The dispute comes days after the Securities and Exchange Board of India (Sebi) cleared Zetwerk’s proposed initial public offering (IPO). The issue size is expected to be around Rs 5,000 crore, including Rs 2,700-2,800 crore in fresh capital, with the remainder likely to be an offer for sale by existing shareholders.
