Samvardhana Motherson International 's subsidiary SMR Hyosang Automotive has successfully settled a sub-contracting dispute through mediation, reaching an agreement that demonstrates the company's commitment to resolving commercial matters through structured negotiations.

Mediation Agreement Overview

SMR Hyosang Automotive entered into a mediation agreement with its sub-contractor on April 06, 2026, under the supervision of the Subcontracting Dispute Mediation Committee (SDMC) of Korea Fair Trade Mediation Agency. The settlement resolves dues and claims arising from sub-contracting transactions between the parties.

Financial Settlement Terms

Under the mediation agreement, SMR Hyosang will pay KRW 360,000,000 (South Korean Won Three Hundred Sixty Million) to the sub-contractor by April 27, 2026. The amount is equivalent to approximately ₹22,179,600, calculated at an exchange rate of 1 KRW = INR 0.06161 as of April 06, 2026. The settlement amount excludes Value Added Tax.

Regulatory Compliance

Samvardhana Motherson International has filed the required intimation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring full transparency with stock exchanges. The company has confirmed that the settlement will have no material impact on the financial operations or other activities of SMR Hyosang or the parent company.

Strategic Impact

The successful mediation reflects SMR Hyosang's preference for collaborative dispute resolution over prolonged litigation. This approach helps preserve business relationships while addressing commercial disagreements effectively. The company's proactive stance in resolving sub-contractor disputes demonstrates its commitment to maintaining healthy supplier relationships in the competitive automotive components sector.

Samvardhana Motherson International Limited has executed a joint venture agreement with Hellmann Worldwide Logistics (MESA) Holding Limited on March 25, following board approval on March 19. The strategic partnership establishes a Dubai-based joint venture company to provide world-class supply chain solutions to the automotive industry globally, excluding Japan.

Joint Venture Structure and Strategic Objectives

The new joint venture company will be incorporated in Dubai, UAE, combining Hellmann's global logistics network and technology capabilities with Motherson's deep automotive supply chain expertise. The partnership will provide access to more than 30,000 global suppliers and trusted OEM relationships, delivering greater stability, predictability, and efficiency across global logistics operations.

Leadership Vision and Market Impact

The collaboration aims to deliver innovative, efficient and sustainable logistics solutions tailored to the global automotive industry's evolving supply chain needs. Both companies are committed to carbon net-zero targets and will leverage their expertise and technologies to support industry-wide sustainability initiatives.

Mr. Arjun Kochhar, Chief Executive Officer, Logistics Solutions Business Division, Motherson Group, stated: "Motherson's Logistics Division focuses on building specialised platforms that support the evolving supply chain needs of the Group, our customers, suppliers and the broader ecosystem, as part of Motherson's D.E.M.A.L solutions strategy. Our partnership with Hellmann Worldwide Logistics combines Motherson's integrated industrial capabilities with Hellmann's extensive network and advanced logistics expertise."

Mr. Madhav Kurup, Global Chief Operating Officer - Airfreight, Sea freight and Contract Logistics, Hellmann Worldwide Logistics, added: "As two family-owned companies with shared values and a strong cultural alignment, we are building a partnership rooted in trust and long-term ambition. Together, we are creating a global platform that takes automotive logistics to the next level."

Governance Structure and Partner Profiles

The joint venture company's board will consist of a minimum of six directors, with Samvardhana Motherson International appointing three directors including the Chairman, while Hellmann will appoint the remaining three directors. This balanced governance structure ensures both partners have significant input in strategic decision-making while maintaining majority control.

Hellmann Worldwide Logistics SE & Co. KG., the German parent company, is a leading global freight forwarder headquartered in Osnabrück with annual sales of EUR 3,800,000,000.00 and around 12,000 employees in 61 countries, moving over 20 million shipments annually across its network in over 170 countries.

Regulatory Compliance

The announcement was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that this transaction does not constitute a related party transaction, as Hellmann is not connected to the promoter group or related entities. The partnership will support Motherson's growing global manufacturing footprint and strengthen Hellmann's global automotive logistics capabilities.