Samvardhana Motherson International Limited is set to acquire SAS Auto system Technik GmbH for €540 million, enhancing its capabilities in cockpit assemblies and reinforcing its position in the global automotive components market.

Information on the Target

Samvardhana Motherson International Limited (SAMIL) stands as a prominent global automotive components manufacturer specializing in the production of critical components, including wiring harnesses, rearview mirrors, bumpers, and dashboards. The company has established itself as a key supplier to major original equipment manufacturers (OEMs) such as Maruti Suzuki, Mercedes-Benz, and Volkswagen. SAMIL has continually expanded its operations through strategic acquisitions, notably including PKC Group and Reydel Automotive. Recently, in July 2024, CRISIL upgraded SAMIL’s long-term credit rating to 'CRISIL AAA/Stable', an improvement from 'CRISIL AA+/Positive', while also reaffirming its short-term rating at 'CRISIL A1+'. This rating change reflects SAMIL's robust market position and growth trajectory.

With a market capitalization of ₹87,919 Cr, a price-to-earnings ratio of 21.32, and an earnings-per-share value of 5.86, SAMIL is well-equipped for sustained growth. The company has a diversified business portfolio, engaging in various sectors that include wiring harness and electrical components, interior and plastics, vision systems, metal processing and engineering, IT services and digital solutions, as well as aerospace and health tech.

Industry Overview in India

The automotive components industry in India is experiencing substantial growth and is projected to reach ₹3.32 lakh crore (approximately $39.6 billion) in the first half of fiscal year 2024-25, reflecting an 11.3% year-on-year increase. Key drivers of this growth include the rise in electric vehicle (EV) adoption, favorable government policies such as the Production-Linked Incentive (P