Samvardhana Motherson International Limited (SAMIL), a leading auto component manufacturer, has announced a series of strategic acquisitions to strengthen its global presence and expand its product portfolio. The company is set to acquire majority stakes in two Japanese auto component companies and gain complete control of an Indian subsidiary.

Japanese Acquisitions

SAMIL, through its indirect wholly-owned subsidiary Motherson Global Investments B.V. (MGI BV), will acquire an 81% stake with voting rights in Yutaka Giken Co., Ltd. (YGCL), a company listed on the Tokyo Stock Exchange. YGCL specializes in the production of metal components and assemblies, including rotors and stator assemblies for motors, drive systems, brake systems, and thermal management systems.

Additionally, MGI BV will acquire an 11% stake in Shinnichi Kogyo Co., Ltd. (Shinnichi), a subsidiary of YGCL. This move is expected to enhance SAMIL's presence in the Japanese automotive market and expand its technological capabilities.

Indian Subsidiary Acquisition

As part of the transaction, SAMIL will directly or through its wholly-owned subsidiary acquire 100% of the shares and voting rights in Yutaka Autoparts India Private Limited (Yutaka India) from YGCL. This acquisition will give SAMIL complete control over Yutaka India's operations and further strengthen its position in the Indian market.

Strategic Rationale

The acquisitions aim to strengthen SAMIL's global partnership with Honda Motor Co., Ltd., which currently owns a 69.66% stake in YGCL. After the completion of the transaction, Honda will retain a 19% stake in YGCL, while SAMIL will own 81%.

Mr. Vivek Chaand Sehgal, Chairman of SAMIL, commented on the acquisitions, stating, "These strategic moves will not only expand our share of business with Japanese OEMs but also enable us to potentially cross-sell YGCL's existing product portfolio to other OEMs, especially in emerging markets."

Financial Details

The total expected cash outflow for the 81% shareholding in YGCL is approximately JPY 27 billion (around USD 184 million). YGCL reported a net turnover of JPY 179 billion (approximately USD 1.2 billion) for the fiscal year 2024-25.

Global Expansion

YGCL has a significant global presence with 13 manufacturing facilities and one R&D facility across nine countries, including Japan, China, the United States, Thailand, Brazil, India, Indonesia, Mexico, and the Philippines. This extensive network will provide SAMIL with enhanced manufacturing capabilities and a broader global footprint.

Regulatory Approvals

The transaction is subject to merger control clearances from authorities in Japan, the United States, China, Brazil, and Mexico. The closing of the deal is expected to take place in multiple steps, with final completion anticipated by Q1 FY 2026-27.

Conclusion

These acquisitions mark a significant step in Samvardhana Motherson's global expansion strategy, particularly in strengthening its ties with Japanese automakers and expanding its product offerings. As the automotive industry continues to evolve, SAMIL's strategic moves position it well to capitalize on new opportunities and drive future growth in the global auto component market.

Samvardhana Motherson International Limited (SAMIL), a leading automotive component manufacturer, has announced the incorporation of a new wholly owned subsidiary, Motherson Manufacturing Services Limited (MMSL). The move marks SAMIL's strategic expansion into diverse manufacturing and service sectors.

Key Details of the New Subsidiary

| Aspect | Detail | |:-----------------------------------|:---------------------------------------------------|| | Incorporation Date | August 26, 2025 | | Certificate of Incorporation Issued | August 27, 2025 | | Initial Paid-up Equity Share Capital | INR 5,00,000 | | Industry | Manufacturing and Services | | Ownership | 100% owned by Samvardhana Motherson International Limited |

Business Focus

MMSL is set to engage in a wide range of activities, including manufacturing, trading, and related services across various industries. This diversification strategy could potentially open new revenue streams for the parent company, SAMIL.

Regulatory Compliance

The incorporation of MMSL adheres to the Companies Act, 2013, ensuring full compliance with Indian regulatory requirements. SAMIL has duly informed the National Stock Exchange of India Limited and BSE Limited about this development, in line with SEBI regulations.

Market Implications

The incorporation of MMSL could potentially impact SAMIL's future financial performance and market position. Investors and market analysts will likely monitor the new subsidiary's progress and its contribution to SAMIL's overall business portfolio.

Additional Corporate Actions

SAMIL has also announced:

1. A scheduled Board Meeting on August 29, 2025, with a trading window closure from August 27 to August 31, 2025, for designated persons.

2. The record date for the first interest payment on its Listed Compulsorily Convertible Debentures (CCDs) has been set for September 14, 2025, with the payment due on September 30, 2025.

These corporate actions underscore SAMIL's active management of its financial instruments and commitment to regulatory compliance.

As MMSL begins its operations, stakeholders will be keen to observe how this new entity contributes to SAMIL's growth trajectory and overall business strategy in the coming years.