Motherson and Sanko forge strategic JV to drive sustainable packaging solutions in India and Europe

Samvardhana Motherson International Limited has announced a strategic joint venture (JV) with Japan-based Sanko Co. Ltd., aimed at revolutionising sustainable packaging solutions across India and Europe. This landmark partnership will focus on enhancing supply chain efficiencies through the development of innovative, eco-friendly material handling products tailored for diverse industries.

The collaboration involves the formation of two distinct joint ventures. Samvardhana Motherson Global Carriers Limited, a wholly owned subsidiary of Samvardhana Motherson International Limited, will partner with Sanko to establish operations in India. Simultaneously, SMRC Automotive Holdings Netherlands B.V., an indirect subsidiary of Motherson, will collaborate with Sanko to launch operations in Hungary. Motherson will hold a 51% stake in both ventures, while Sanko will retain a 49% interest, highlighting a balanced, strategic alliance.

This venture represents more than just a business partnership; it’s a bold step towards addressing the increasing global demand for sustainable packaging solutions. As industries worldwide grapple with environmental challenges and regulatory pressures, the need for reusable, recyclable, and cost-effective material handling products has never been greater.

How will the Motherson-Sanko joint venture impact sustainable packaging?

The primary goal of the joint venture is to accelerate the adoption of sustainable packaging solutions in both the automotive and non-automotive sectors. By leveraging Motherson’s extensive presence in India and Europe and Sanko’s expertise in engineering durable, reusable products, the partnership aims to create eco-friendly packaging that reduces logistics costs and minimises environmental impact.

Sanko, established in 1951, is Japan’s leading manufacturer of plastic material handling products. The company operates 27 factories across Japan and has earned a reputation for its strong engineering capabilities and commitment to sustainability. Its product range includes pallets, foldable containers, intermediate bulk containers, and dunnage solutions, all designed with a focus on durability and full recyclability.

Motherson, on the other hand, brings decades of experience as a global engineering and manufacturing powerhouse. With over 400 facilities across 44 countries, the company’s robust infrastructure and market reach make it an ideal partner for scaling up sustainable packaging solutions on a global level.

What are the strategic benefits of this joint venture?

This strategic joint venture is poised to deliver multiple benefits, both operationally and environmentally. The integration of Sanko’s advanced material technology with Motherson’s global logistics network will optimise supply chain efficiencies, reduce costs, and support decarbonisation efforts. By focusing on reusable and integrated packaging systems, the venture aims to shift industries away from traditional, single-use packaging materials.

The initial paid-up capital for the Indian joint venture is set at INR 5 lakh, while the Hungarian entity will begin with EUR 10,000. These investments reflect a long-term commitment to developing cutting-edge sustainable packaging solutions that meet the evolving needs of businesses across various sectors.

Vivek Chaand Sehgal, Chairman of Samvardhana Motherson International Limited, highlighted the transformative potential of the partnership. He noted that reimagining packaging as an engineered solution rather than a basic commodity could unlock significant efficiencies in logistics and supply chain management. Sehgal emphasised that the joint venture aligns with Motherson’s broader mission to support customers in achieving their sustainability goals.

Toshihiko Goto, President of Sanko Co. Ltd., echoed similar sentiments, describing the partnership as a pivotal step in Sanko’s global expansion strategy. Goto expressed confidence that the collaboration would enable both companies to deliver greater value to their customers by combining Motherson’s extensive market presence with Sanko’s deep expertise in sustainable packaging solutions.

How does this joint venture support global sustainability goals?

As environmental concerns continue to shape business strategies worldwide, the Motherson-Sanko partnership is well-positioned to contribute to global sustainability efforts. The joint venture’s focus on eco-friendly material handling products aligns with international decarbonisation initiatives aimed at reducing carbon footprints across industries.

Reusable packaging systems, such as those developed by Sanko, play a crucial role in reducing waste, conserving resources, and lowering greenhouse gas emissions. By integrating these systems into global supply chains, the joint venture will help businesses meet increasingly stringent environmental regulations while enhancing operational efficiency.

Moreover, the partnership reflects Motherson’s ongoing diversification strategy, which extends beyond the automotive sector into areas such as healthcare, aerospace, and industrial solutions. This strategic expansion underscores the company’s commitment to driving sustainable growth across multiple industries.

What’s next for Motherson and Sanko?

Looking ahead, the joint venture plans to invest in research and development to further advance sustainable packaging solutions. Both companies aim to explore new materials, design innovations, and manufacturing techniques that enhance product durability and environmental performance.

As the global demand for eco-friendly packaging continues to rise, the Motherson-Sanko partnership is set to play a pivotal role in shaping the future of material handling products. By combining their strengths, the two companies are not just responding to market trends—they’re setting new standards for sustainability in the logistics and supply chain industries.