Samvardhana Motherson International Limited , a leading auto component manufacturer, has announced plans to implement a new Employee Stock Option Scheme (ESOP) 2025, subject to shareholder approval. This move aims to reward, retain, and motivate talent within the organization as the company enters its next phase of business growth.

Key Features of the Proposed ESOP 2025

• Total Options: The scheme proposes to grant up to 9,45,00,000 (Nine crore Forty Five lakh) employee stock options.
• Eligibility: Employees of Samvardhana Motherson International, its subsidiaries, and group companies, both in India and abroad, will be eligible for the scheme.
• Vesting Period: Options will vest over a period of 1 to 5 years from the date of grant.
• Exercise Period: Vested options can be exercised within a maximum period of 3 years from the date of vesting.
• Scheme Implementation: The ESOP 2025 will be implemented and administered through an irrevocable employee welfare trust named 'Motherson ESOP Trust'.

Share Acquisition and Funding

The company plans to acquire the required shares primarily through secondary market purchases. However, it retains the right to issue new shares if necessary. To fund the share acquisition, Samvardhana Motherson International will provide a loan to the trust, not exceeding 5% of the company's paid-up capital and free reserves.

Rationale Behind the Scheme

The Board of Directors believes that equity-based compensation schemes are an effective means to:

1. Align employee interests with those of the company and its shareholders
2. Foster a culture of ownership and accountability
3. Attract and retain high-quality leadership and key talent

Shareholder Approval and Implementation

The proposed ESOP 2025 requires shareholder approval through a special resolution. The company has initiated a postal ballot process, with e-voting scheduled from July 24, 2025, to August 22, 2025. Results of the postal ballot are expected to be declared on or before August 25, 2025.

Impact on Equity

Post the recent 1:2 bonus share issuance, the proposed ESOP 2025 will represent approximately 0.90% of the company's paid-up equity share capital.

This strategic move by Samvardhana Motherson International Limited underscores the company's commitment to employee welfare and long-term value creation for all stakeholders. The success of this initiative will depend on shareholder approval and effective implementation in the coming months.

Samvardhana Motherson International Limited (SAMIL) has announced a significant expansion of its cable business operations in Serbia, marking a strategic move to strengthen its presence in the European market.

New Manufacturing Unit

The company's subsidiary has established a new cable manufacturing unit in Serbia, demonstrating Samvardhana Motherson's commitment to growth and diversification in the region. This development represents a notable expansion of the company's cable business operations into the Serbian market.

Corporate Structure

According to a recent regulatory filing, PKC Wiring Systems LLC, Serbia (PKC Serbia), a step-down wholly owned subsidiary of SAMIL, has incorporated a new wholly owned subsidiary named Motherson PKC Electric Cable D.O.O. Požarevac (MPEC) in the Republic of Serbia.

Business Focus

MPEC will be primarily engaged in the manufacture of electronic and electric wires and cables. This aligns with Samvardhana Motherson's core competencies and expands its product portfolio in the region.

Key Details of the New Entity

Strategic Implications

This expansion is expected to enhance Samvardhana Motherson's capabilities in serving the European automotive and industrial markets. By establishing a local presence in Serbia, the company is well-positioned to meet the growing demand for high-quality cable products in the region.

The move also underscores Samvardhana Motherson's global growth strategy, focusing on expanding its manufacturing footprint in strategic locations to better serve its customers and optimize its supply chain.

As the new entity begins operations, it is anticipated to contribute to the group's overall performance and strengthen its position in the global automotive components market.

Samvardhana Motherson International Limited continues to demonstrate its commitment to growth and innovation in the automotive supply chain, with this latest expansion in Serbia marking another milestone in its global journey.