Motherson, Magneti Marelli Spa form JV company.

The Samvardhana Motherson Group seems to be on a roll with its acquisitions and joint ventures. The group’s flagship company Samvardhana Motherson International Ltd. (SMIL) and Magneti Marelli Spa has signed a Joint Venture (JV) agreement. The JV is in the field of automotive shock absorbers. It’s the 20th acquisition / joint venture for the group as a whole.

According to a company press release, SMIL will enter the JV through the acquisition of a 50pc equity stake in Magneti Marelli Shock Absorbers India Private Limited. The JV will leverage Magneti Marelli’s existing shock absorbers manufacturing facility in Chakan near Pune in the state of Maharashtra in western India.

The JV will also benefit from the global industrial and commercial footprint of Magneti Marelli worldwide shock absorber business. Besides this, the JV will also benefit from its portfolio of added value shock absorbers technological solutions like the Full Displacement Valve, the Frequency Dependent Dual Stage and the Digressive Curve Valving. The products are meant to reduce the NVH levels in vehicles.

The JV will also have synergies with the existing Sintered Metal Components business of SMG, which the Samvardhana Motherson group acquired in 2012. The JV will also have access to expertise & capabilities of the SMG in the areas of metalworking, engineering & design and IT solutions etc.

Among the largest acquisitions done so far by SMIL is about the mirror business from Visiocorp (now renamed as Samvardhana Motherson Reflectec) in 2009.  The group had also acquired Peguform (now named Samvardhana Motherson Peguform) in 2011. Both the acquisitions were done in collaboration with its flagship company Motherson Sumi Systems Limited (MSSL).

On the group’s latest joint venture, V.C. Sehgal, the Chairman Samvardhana Motherson Group noted that it is a significant development as it further strengthens its relationship with Magneti Marelli. The latter has been a partner of the group since 2008. “We have an existing successful JV with Magneti Marelli and we see a good potential for the new JV,” he added.

Eugenio Razelli, CEO of Magneti Marelli Spa, felt that this new JV is the most appropriate way of maximizing the Magneti Marelli’s investment in the shock absorbers sector in India. “The partnership will accelerate the process to become a leader in the shock absorbers Indian market and also a supply source for clients on a global scale,” he said. The two groups have in the past formed other JV in the lighting and Powertrain fields.

Source:  Samvardhana Motherson Group.