Motherson Group enters logistics sector with new JV

by Autocar Pro News Desk , 27 Aug 2019


Tier 1 major Motherson Group today announced the launch of Samvardhana Motherson Hamakyorex Engineered Logistics (SAMRX), a joint-venture company between Samvardhana Motherson International (SAMIL), India and Hamakyorex, Japan.

SAMRX says it aims to revolutionise the transportation of finished vehicles in India by developing a modern, technology enabled and equitable socially conscious solution for the OEM customers.

The company was launched in the presence of Osamu Suzuki, Chairman, Suzuki Motor Corporation and Ambassador of Japan to India, Kenji Hiramastsu.  Also present were R C Bhargava, chairman, Maruti Suzuki India; Kenichi Ayukawa, MD and CEO, Maruti Suzuki India; M Osuka, chairman, Hamakyorex; Vivek Chaand Sehgal, chairman, Motherson Group and Laksh Vaaman Sehgal, vice-chairman, Motherson Group.

Established in the year 1973, Hamakyorex is one of Japan’s most premium car carrier companies. Over the years, Hamakyorex has developed capabilities to deploy as many as 3,500 trucks to transport 19,000 cars every month. Building on the expertise of Hamakyorex and Motherson Group, SAMRX will work towards considerably scaling business operations over the next 3 years. Starting with 20 self-owned trucks and 42 drivers, the company aims to substantially ramp-up its fleet of self-owned trucks to over 1,500 and employ over 3,200 drivers along with other indirect employees for various support functions by FY2023.

The partners say with its modern solution offerings, the company will make manufacturing industry more efficient, resulting in job growth in India across multiple industries. Besides enhancing operational efficiencies, SAMRX will also bring stability and respect to the job of truck drivers by implementing fixed salary system as adopted by Japan and at par with global standards.  Additionally, the company would work towards providing insurance, safe and clean working environment and training rooms and also work towards initiating programs and facilities to improve drivers’ safety, health and overall lifestyle in the HUB.

In future SAMRX also plans vertical integration through the manufacturing of trailers, yard management, and providing integrated rail and waterways solutions. As announced earlier in this year, Motherson Group, through its group holding company Samvardhana Motherson International (SAMIL) entered into a JV agreement with Hamakyorex, Japan to grow the land transportation business of finished vehicles in India.

Vivek Chaand Sehgal, chairman, Motherson Group, said, “Safe and cost effective transportation solutions are the key to the success of ‘Make in India’. SAMRX will work in this direction by ensuring seamless supply chain across the length and breadth of the Indian economy. With introduction of GST and construction of brand new superhighways, a systemic ecosystem level change is required in the transportation industry to drive efficiencies. While SAMRX will take the lead, we need all the support from the industry and the customers. We need to do this together for the nation.”

SAMRX aims to bring technologically advanced Japanese ultra-safe transportation solutions for finished vehicles in India. The company intends to bring investments worth Rs 700 crore in the next few years with over 5,000 direct and indirect jobs being created to support Make in India.