News
Samvardhana Motherson International Ltd (SMIL) and Magneti Marelli Spa have sign a 50/50 joint venture pact in the field of shock absorbers for the automotive sector.
- 09.06.2014SMIL and Magneti Marelli have signed a 50/50 joint venture agreement in the field of shock absorbers, SMIL has bought 50% shares in Magneti Marelli Shock Absorbers India Private Limited.The Company will continue its current activities and use Magneti Marelli's know-how in the field of shock absorbers.
SMIL and Magneti Marelli already have another successful joint venture company, which has been designing lightning, suction collectors and pedal mechanisms since 2008.
The newly established company will support the existing Magneti Marelli's shock absorbers factory in Chakan, Pune (India), thanks to cutting-edge production and automation technology.
The JV will also benefit from the global industrial and commercial footprint of Magneti Marelli worldwide shock absorber business, as well as from its numerous technological solutions like the Full Displacement Valve, the Frequency Dependent Dual Stage and the Digressive Curve Valving, aimed at reaching high performance levels in terms of comfort and noise, vibration and harshness (NVH).
In addition, the JV will cooperate with Sintered Metal Components, an existing company of the Samvardhana Motherson, acquired in 2012. The joint venture company will have access to the expertise and capabilities of SMG in the field of metalworking, engineering and design as well as IT solutions.
When it comes to SMIL, it has so far acquired the mirror manufacturer Visiocorp (renamed to Samvardhana Motherson Reflectec) in 2009 and Peguform (currently - Samvardhana Motherson Peguform) in 2011; both companies were purchased in cooperation with the flagship company of the Motherson Sumi Systems Limited Group (MSSL).
V.C. Sehgal, Chairman, Samvardhana Motherson, said:
"This significant development further strengthens our relationship with Magneti Marelli, our partner since 2008." In line with our philosophy of increasing the group's content per vehicle, this joint venture will add a new product line — shock absorbers — to our portfolio. We already have an existing successful joint venture with Magneti Marelli and we see a good potential for the new JV."
Eugenio Razelli, CEO of Magneti Marelli Spa, has said:
"This new JV is the most appropriate way of maximising the Magneti Marelli's investment in the shock absorber sector in India. The partnership will accelerate the process to become a leader in the shock absorbers Indian market and also a supply source for clients on a global scale. Magneti Marelli already has a long relationship with Samvardhana Motherson group, by virtue of its joint ventures in the lighting and powertrain fields. This has made Samvardhana Motherson an ideal partner to further extend our business."
Samvardhana Motherson International Limited (SMIL) is the main company of the Samvardhana Motherson holding (SMG). Samvardhana Motherson Group (SMG) is a focused, dynamic and progressive group providing customers with innovative products, services and solutions. With a turnover of $6,1 billion in 2013-2014, the group supplies all major automotive manufacturers in the world. The group has more than 150 manufacturing facilities supported by design centres and service offices located in more than 25 countries. The product offer of the group in the automotive industry is very broad and includes lightning, mirrors, plastic and rubber parts, suction collectors, air conditioning. The group invests in technologies that provide production support, including software, equipment, engineering services for automotive production.
