Samvardhana Motherson buys MS Group’s India business
New Delhi: Samvardhana Motherson International Ltd (SAMIL), promoter of Motherson Sumi Systems Ltd, on Thursday announced the acquisition of MS Global India Pvt. Ltd from its Korean parent MS Group.
MS Global India makes pressed sheet metal and frames for commercial vehicles’ chassis. Motherson Sumi is one of India’s largest auto part makers.
The deal could be worth 30-60% of MS Global India’s revenue, a person familiar with the deal said, in condition of anonymity.
“The acquisition of MS Global India will see SAMIL enter a new vertical—sheet metal parts with focus on hot stamping—a light weighting technology for high strength sheet metal parts. This technology augurs well towards the trend of light weighting of vehicles and will also find increased use in Electronic Vehicles,” the company said in a statement.
Since most vehicle manufacturers have started working on their electric vehicle strategy, the acquisition may help Motherson stay ahead of its peers with regard to electric vehicles.
“We believe that there are many synergies at play, most important being, it increases our offerings in terms of content per car, as these parts are used in both passenger and commercial vehicles,” V.C. Sehgal, chairman, Samvardhana Motherson Group.