MSGI has the exclusive licence to use MS Group’s hot stamping technology in India. When contacted, Motherson's officials were not available for comments on the deal size.
Samvardhana Motherson International (SAMIL), the principal holding company of $9.1-billion Samvardhana Motherson Group, on Thursday announced that it has acquired 100% of Chennai-based MS Global India (MSGI) from Korea-based MS Group for an undisclosed sum. MSGI is a Rs 3.5-billion profitable tier 1 supplier to leading global commercial vehicle OEMs. Through its manufacturing facility in Chennai, it is currently engaged in cabin-in-white (pressed sheet metal business) and frames for chassis for commercial vehicles. Further, MSGI has the exclusive licence to use MS Group’s hot stamping technology in India. When contacted, Motherson’s officials were not available for comments on the deal size. The acquisition of MS Global India will see SAMIL enter a new vertical — sheet metal parts with focus on hot stamping — a light-weighting technology for high-strength sheet metal parts.
This technology augurs well in view of the trend of light-weighting of vehicles, and it will also find increased use in electric vehicles. The technology from MS Global India and the spread of Motherson Group’s operations and strong client portfolio can help accelerate the business of the company.
VC Sehgal, group chairman of SAMIL, said: “We look forward to the opportunities that this step in a new direction will bring us. We believe that there are many synergies at play, most important being it increases our offerings in terms of content per car, as these parts are used in both passenger and commercial vehicles. As always, we are grateful for the support and confidence of our customers, who encourage us to take steps in new directions and create new opportunities for us.”