Indian Tier 1 automotive components major, Samvardhana Motherson Automotive Systems Group has announced successful closure of its acquisition of a majority stake in Turkey’s Plast Met Group, through its subsidiary – Samvardhana Motherson Reflectec (SMR).
The automotive giant had initiated the acquisition earlier this year in January, wherein the company was looking to acquire a major 75 percent stake in Plast Met and entering into a partnership with the founder of the Plast Met Group – Erol Senol – who retains 25 percent stake.
The Plast Met Group comprises of two entities – Plast Met Plastik Metal San (PM-Bursa) and Plast Met Kalip San (PM-Istanbul).
With this acquisition, Motherson has received access to the Turkish automotive market, where Plast Met is a major supplier of injection-moulded parts and sub-assemblies, for instance, dashboards and door pads. The company also owns a state-of-the-art commercial tool room engaged in the manufacturing and supply of high-end injection-moulding tools to its customers across the globe.
Motherson aims to cater to its European customers better with this latest acquisition which is the 25th acquisition in its basket of companies and is also eyeing growth in the long-term by exploring the potential of the promising market that boasts annual passenger vehicle volumes of 1.4 million units. The Motherson Group says that entry into Turkey is consistent with the geographic expansion opportunities highlighted in the recent Vision 2025 presentation to its shareholders.
Commenting on the acquisition, Vivek Chaand Sehgal, chairman, Motherson Group, said, “We welcome entire team of Plast Met into the Motherson family. Motherson is committed to serve its customers globally. Our footprint in the strategically important market of Turkey gives us enhanced competitive advantage for our European customers. In house tooling capability in the region will give us better control on the cost and quality. This acquisition reaffirms our vision of being a globally preferred solutions provider”
Plast Met Group reported a turnover of 33 million euros (Rs 273 crore) in 2019, and 28 million euros (Rs 231 crore) in 2020, which is still unaudited. The company employs over 400 personnel across its two manufacturing sites in Bursa and Istanbul, in Turkey.