India – The 50:50 joint venture has been formed after Samvardhana Motherson International (SMIL) acquired half the share capital of Magneti Marelli Shock Absorbers India.
The partnership will make use of the existing Magneti Marelli manufacturing facility for shock absorbers which is located in Chakan, Pune, and is claimed to have state-of-the-art product and automation technology.
The JV will also offer synergies with the Sintered Metal Components business of SMG which SMIL acquired in 2012. It will have access to the expertise of SMG in the areas of metal working, engineering and design, and IT solutions.
VC Sehgal, chairman of SMIL, commented: “In line with our philosophy of increasing our content per vehicle, this JV adds a new product line – shock absorbers – to our portfolio.” He added that it would strengthen his company’s relationship with Magneti, a partner since 2008.