US-based transformer company Ayr Energy has filed a complaint before the US International Trade Commission (ITC) against contract manufacturing company Zetwerk and its affiliates, alleging trade secret misappropriation and trademark infringement linked to transformer technology.
According to the filings before the ITC and the Texas Business Court, Ayr alleged that an individual joined the company under false pretences, gained access to confidential information, and later joined Zetwerk to lead a newly established transformer business. Ayr further alleged that the information was used to develop competing transformer capabilities and that Zetwerk’s marketing infringed on the AYR ENERGY trademark.
Besides seeking a limited exclusion order to bar the import of the accused transformer products into the United States, Ayr has sought monetary damages of at least $1 billion in the Texas Business Court. The company has also sought exemplary damages, disgorgement of profits, corrective advertising and injunctive relief.. The filings also include allegations of false advertising, breach of fiduciary duty, fraud, civil conspiracy, civil theft, conversion and unfair competition.
Responding to businessline’s queries, Zetwerk spokesperson denied the allegations, saying they are part of an ongoing legal dispute between the two companies.
The company said Ayr had earlier withdrawn a related case in California after it “found no traction”, while Zetwerk had initiated legal proceedings in Texas in October 2025 seeking $100 million in damages.
“The origin of this dispute is that Ayr’s co-founder, Anirudh Reddy, incorporated the company while serving as a senior Zetwerk executive and left with confidential Zetwerk documents. This latest complaint is Ayr’s answer to a case it cannot avoid. We will prove these allegations in court,” the spokesperson added.
Founded in 2018, Zetwerk is one of India’s largest contract manufacturing platforms, serving sectors including industrials, consumer goods, aerospace and renewables. The company has raised about $912 million across multiple funding rounds and was last valued at around $1.18 billion (as per Tracxn). It is preparing for an initial public offering expected to raise up to ₹4,200 crore through a mix of fresh issue and offer for sale.
Published on July 22, 2026
