Samvardhana Motherson International Limited (SAMIL) has announced a significant expansion into the North African market through its subsidiary, PKC Wiring Systems. The company has established a new wholly-owned subsidiary in Morocco, marking a strategic move to diversify its geographical presence.

New Subsidiary Details

The newly incorporated entity, named Motherson PKC WH Systems Morocco SAS (MPKC), was established on July 28, 2025. This subsidiary falls under PKC Wiring Systems Oy (Finland), which is an indirect wholly-owned subsidiary of SAMIL.

Business Focus

MPKC will primarily engage in the manufacturing sector, with a specific focus on:

• Production of strings, cables, ropes, and twine
• Manufacture of electrical distribution and control equipment

This expansion aligns with SAMIL's core competencies in the automotive and industrial sectors, potentially strengthening its global supply chain and manufacturing capabilities.

Financial Details

The initial investment in MPKC amounts to EUR 100,000.00, representing the entire share capital of the new entity. As a newly incorporated company, MPKC does not have any historical turnover data to report.

Strategic Implications

This move into Morocco represents a significant step for Samvardhana Motherson International:

1. Geographic Diversification: The expansion into North Africa opens up new market opportunities and potentially provides access to a different labor market and resource base.

2. Supply Chain Optimization: Establishing a presence in Morocco could help optimize SAMIL's global supply chain, potentially reducing costs and improving efficiency.

3. Market Access: This new subsidiary could serve as a gateway to both African and European markets, given Morocco's strategic location.

Regulatory Compliance

SAMIL has duly informed the National Stock Exchange of India Limited and BSE Limited about this development, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The establishment of MPKC in Morocco marks an important milestone in Samvardhana Motherson International's global expansion strategy, potentially enhancing its competitive position in the automotive and industrial manufacturing sectors.

Samvardhana Motherson International Limited (SAMIL), a leading auto component manufacturer, has announced the establishment of a new indirect wholly owned subsidiary in Morocco, marking a significant step in its global expansion strategy.

New Subsidiary Details

Motherson PKC WH Systems Morocco SAS (MPKC) was incorporated on July 28, 2023, under the Finnish subsidiary PKC Wiring Systems Oy. The new entity, based in Morocco, will focus on manufacturing operations, specifically in the production of:

• Strings
• Cables
• Ropes
• Twine
• Electrical distribution and control equipment

Investment and Ownership

The initial investment for the establishment of MPKC is set at EUR 100,000.00. PKC Wiring Systems Oy, which is an indirect wholly owned subsidiary of SAMIL, holds 100% shareholding in the newly formed Moroccan entity.

Strategic Implications

This move by Samvardhana Motherson International Limited signifies:

1. Geographical Expansion: Entering the Moroccan market, potentially to serve European and African automotive markets more efficiently.
2. Diversification of Manufacturing Base: Adding to the company's global production capabilities.
3. Focus on Core Competencies: Aligning with SAMIL's expertise in automotive components and electrical systems.

Regulatory Compliance

The company has duly informed the National Stock Exchange of India Limited and BSE Limited about this development, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Looking Ahead

While the turnover of the new subsidiary is not applicable at this stage due to its recent incorporation, the strategic location in Morocco could potentially offer Samvardhana Motherson advantages in terms of market access and operational efficiencies.

As SAMIL continues to expand its global footprint, this new subsidiary in Morocco represents another step in the company's strategy to strengthen its position in the global automotive component manufacturing industry.

Note: The incorporation of the new subsidiary does not fall under related party transactions, and no governmental or regulatory approvals were required for this acquisition, as per the company's disclosure.