SMIL inks JV pact with Magneti Marelli for shock absorbers biz

Auto components maker Samvardhana Motherson International Ltd (SMIL) has inked a 50:50 joint venture pact with Italy's Magneti Marelli Spa to enter the automotive shock absorbers segment in the Indian market.

SMIL will enter the JV through the acquisition of 50 per cent stake in Magneti Marelli Shock Absorbers India Pvt Ltd, the Italian firm's arm in India, SMIL said in a statement.

The JV will leverage Magneti's manufacturing facility in Chakan, Pune, with state-of-the-art product and automation technology, it added.

"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," Samvardhana Motherson Group Chairman V C Sehgal said.

SMIL and Magneti have a JV in India for lighting systems, air intake manifolds and pedal assemblies since 2008.

"This new JV is the most appropriate way of maximising 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," Magneti Marelli Spa CEO Eugenio Razelli said.

SMIL is the principal holding company of the Samvardhana Motherson Group (SMG) while Magneti Marelli is part of Fiat Spa.

RELATED ARTICLES

EDITORIAL OF THE DAY

  • Mob rage against the Tanzanian woman betrays racial and gender prejudices

    The mob rage in Bangalore against the Tanzanian woman is a national disgrace from which we can never recover even if we punish the wrong doers.

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Sachin Shridhar

VIPism is casteism by another name

Much has been written and lamented about the all-pervasive VIP ...

Zehra Naqvi

‘What if the British never came to India?’

Legendary Canadian writer Margaret Atwood proves as elusive to the ...

Bubbles Sabharwal

It's the life in your years that counts

We are all in a sense pilgrim souls enjoying the ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture