SMIL inks JV pact with Magneti Marelli

SMIL will enter the JV through the acquisition of a stake representing the 50 percent of the share capital of  “Magneti Marelli Shock Absorbers India Private Limited”, Magneti Marelli-owned company devoted to the shock absorber business in India.

The JV will leverage Magneti Marelli’s existing shock absorbers manufacturing facility in Chakan, Pune (India), with state of the art product and automation technology.

“In addition, this JV will have synergies with the existing Sintered Metal Components business of SMG which the Samvardhana Motherson group acquired in 2012. The JV will also have access to expertise & capabilities of SMG in the areas of metal working, engineering & design and IT solutions etc,” read an official statement on Monday.

Commenting on the occasion  V.C. Sehgal, Chairman Samvardhana Motherson Group said, “It is a very significant development for the Group as it further strengthens our relationship with Magneti Marelli, our partner since 2008. In line with our philosophy of increasing content per vehicle, this JV adds a new product line – shock absorbers, to our portfolio. There are strong synergies in terms of input sintered components, customer base, markets, manufacturing geographies and management. We have an existing successful JV with Magneti Marelli and we see a good potential for the new JV.”

Eugenio Razelli, CEO of Magneti Marelli Spa, said: “This new JV is the most appropriate way of maximizing the Magneti Marelli’s investment in the shock absorbers 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. We have a long and excellent relationship with Samvardhana Motherson group, resulting from the other JV in the Lighting and Powertrain fields, that makes them the ideal partner to join, in this business challenge.”