Auto component maker Samvardhana Motherson International Ltd has acquired MS Global India Automotive Pvt. Ltd from South Korea-based MS Group, the Indian company said in a press release.
The acquisition will provide Samvardhana Motherson access to MS Group’s hot stamping technology for sheet metal parts. This technology can help reduce the weight of automobiles and will find increased use in electric vehicles, the company said.
It didn't disclose the deal value.
“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,†said VC Sehgal, chairman at Samvardhana Motherson group.
MS Global India makes body-in-white sheet metal parts and frames for chassis for commercial vehicles. It has a manufacturing facility near Chennai.
It recorded net sales of Rs 264 crore and posted a loss after tax of Rs 6 crore for the year through March 2016, according to VCCEdge, the data research arm of VCCircle.
Samvardhana Motherson International is the holding company of the Samvardhana Motherson Group. It holds a 34.81% stake in Motherson Sumi Systems Ltd, the Mumbai-listed group flagship. It is one of the most diversified auto component suppliers in the country.
Motherson Sumi has struck a number of acquisitions in the past to grow its business.
Last year, it acquired Finland’s PKC Group Plc for as much as €571 million (Rs 4,150 crore or $610 million).
In 2016, it bought the automotive business unit of Hungary’s Abraham and Co. Ltd for about $11.7 million.
In 2014, it had acquired US-based Stoneridge Inc’s wiring harness business for $65.7 million. Its other noticeable purchases include the acquisition of the mirror business of Visiocorp in 2009 and Peguform in 2011.