'Acquisitions Make More Sense Than JVs': Motherson’s VC Sehgal on Deal-Making Strategy

Samvardhana Motherson International Ltd (SAMIL) will continue to pursue acquisitions over joint ventures as part of its expansion strategy, with Chairman VC Sehgal stating that ownership gives the group greater flexibility and long-term strategic control.

“We are always open to acquisitions,” Sehgal told analysts after the company’s Q4 FY25 results. “Personally, I think that this makes more sense than a joint venture or trying to reinvent the wheel ourselves.”

The auto components major, which has completed 23 acquisitions in the current five-year cycle, sees M&A as a more efficient way to expand capabilities, serve customer needs, and enter new product verticals without starting from scratch.

“Because once you own the company, then you have the complete freedom to go anywhere, any country, anywhere you see,” Sehgal explained. “You don’t have to go back and ask somebody or depend on approvals like you would in a joint venture.”

Customer-Aligned Acquisitions Only

The group’s M&A filter remains strict — every acquisition must be directly backed by customer intent or need.

“I have always been guiding my people that you have to make sure that a customer is standing behind asking for that particular acquisition,” Sehgal said. “If it’s only that you feel that’s a good business, well, I’d rather that I have a customer telling me that he needs that product and hence he wants us to do the acquisition.”

This disciplined approach, Sehgal noted, is the reason why “48 of our acquisitions are all doing well.” Customer-aligned acquisitions ensure quicker integration, clearer revenue visibility, and operational synergies.

Next Wave in Sight

As part of its Vision 2030, where Motherson group is targeting $108 billion in gross revenues, the group indicated it is evaluating further buyout opportunities across verticals — particularly where supply chain gaps exist or where OEMs need an experienced partner.

“Motherson is always open for acquisitions,” Sehgal reiterated. “That gives us the chance to make all three of us happy — the customer, the team, and the group.”

SAMIL closed FY25 with record revenues of Rs 1.13 lakh crore, a $88 billion lifetime order book with continued expansion into non-auto verticals like aerospace, consumer electronics, and semiconductors — areas where the company said M&A could continue to play a catalytic role.