Samvardhana Motherson to drive Magneti Marelli's shock absorber biz in India with new JV

Samvardhana Motherson International Ltd (SMIL), the principal holding company of the Samvardhana Motherson Group (SMG), and Magneti Marelli SpA of Italy have signed a joint venture agreement in the automotive shock absorber segment.

SMIL will enter the JV by acquiring a 50 percent stake in Magneti Marelli Shock Absorbers India, a Magneti Marelli-owned company. The JV will leverage Magneti Marelli’s existing shock absorber manufacturing plant in Chakan, Pune, with its product and automation technology.

The JV will also benefit from Magneti Marelli’s worldwide shock absorber business, as well as from its portfolio of shock absorbers and technological solutions like the full displacement valve, the frequency dependent dual stage and the digressive curve valving to achieve high-level performances in terms of comfort and NVH (Noise, Vibration and Harshness).

In addition, the new 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 SMG’s expertise and capabilities in metal working, engineering and design and IT solutions.

Commenting on the new JV, 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, stated:  “This new JV is the most appropriate way of maximising 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 in the Indian market and also a supply source for clients on a global scale.”

Photograph: V C Sehgal, chairman, Samvardhana Motherson Group and Eugenio Razelli, CEO of Magneti Marelli SpA.