Samvardhana Motherson diversifies with key acquisitions in aerospace and health sectors
Samvardhana Motherson International Limited (Motherson) reveals a series of acquisitions to boost its non-automotive businesses, focusing on the aerospace and health sectors. This move aligns with their approach to fortify their non-automotive avenues and foresees robust future growth.
Boosting Aerospace Competence
Acquisitions Strengthen Aerospace Services
In 2023, Motherson achieved four significant acquisitions in the Aerospace sector from AD Industries, Cirma, and SMAST, followed by CIM Tools in 2022. Each acquisition introduces specialized capabilities, enhancing their offerings to global aerospace OEMs. AD Industries stands out for its diverse expertise across sheet metal, hydraulics, mechanical assemblies, and composites. Coupled with CIM Tools’ renowned machining and metal treatment abilities, and Cirma and SMAST’s wiring harness solutions, Motherson presents a compelling suite of aerospace services with limited overlap.
A Stronghold in the European Aerospace Hub
With eight facilities strategically situated in France, Motherson stamps its significant presence in the European aerospace industry’s heart. Additionally, nine facilities in cost-effective regions of India and Africa ensure they deliver high-quality aerospace solutions. With over US$ 1.3 billion in booked business, the division is well-poised to meet the burgeoning aerospace sector’s demands.
Elevating the Health and Medical Business
Greenfield Plant and Acquisitions Drive Growth
Motherson’s health and medical division focuses on diagnostic equipment, patient aid equipment, IT solutions, and services. Notably, the upcoming greenfield plant in Chennai, India, is progressing smoothly with certification audits in process. The recent acquisitions of AD Industry and Irillic Private Limited mark the division’s initial purchases. With AD Industry’s reinforced carbon composites expertise essential for radiology products and Irillic’s R&D capabilities, Motherson positions itself for exponential growth in the health sector.
Vision for Continued Development
The division is set on continuous advancement, aiming for in-house development, strategic acquisitions, and collaborations with universities, hospital systems, and research centres. Harnessing the manufacturing prowess of SAMIL, these acquisitions promise substantial growth for the division.
Chairman’s Insight on the Strategic Move
Vivek Chaand Sehgal, Chairman of Motherson, commented, “As part of Vision 2025, Motherson is increasing its focus on non-automotive businesses, which are built on the core strength and manufacturing DNA of Motherson… These acquisitions will serve as catalysts for our health and medical business… We look forward to welcoming over 1200 new members into the Motherson family.”