Samvardhana Motherson to acquire Rollon Hydraulics for Rs 103cr

Samvardhana Motherson International Limited (SAMIL), a supplier to the automotive and non-automotive industry, has announced the acquisition of a 100% stake in Rollon Hydraulics Private Limited for INR 103 crores in an all-cash deal.

The deal is likely to be closed in Q2 FY24, subject to satisfactory completion of conditions precedent to closing.

Rollon Hydraulics, a Bengaluru-based firm established by Sanjeev Shah in 1994, is recognized for manufacturing, assembling, and supplying high precision turned parts, spools, and other critical engineering components, specifically for the off-highway segment such as construction equipment, tractors, material handling equipment, and more.

The acquisition of Rollon Hydraulics, which employs around 240 personnel across two facilities in Bengaluru, marks a significant step for Samvardhana Motherson. The company reported healthy profitability with revenues of about INR 60 crores for FY23. Rollon Hydraulics’ established position in precision machining and sub-assembly of highly complex components is expected to contribute to the growth of Samvardhana Motherson’s Precision Metals & Modules division.

Samvardhana Motherson’s manufacturing facilities are spread across India and Mexico, equipped with the latest CNC machines and highly customized special purpose machines. The company’s robust infrastructure, supported by surface treatment and metrological measuring facilities, and specialized expertise in precision machining, are expected to be further enhanced with this acquisition.

The deal is expected to boost Samvardhana Motherson’s reach within the off-highway industry, providing access to a pedigreed customer base, along with specialized machining, plating, surface treatment, and sub-assembly capabilities. Following industry trends of supplier consolidation and given Samvardhana Motherson’s global footprint, this acquisition is anticipated to create more organic growth opportunities by increasing the share of business with existing and new customers.

Vivek Chaand Sehgal — Samvardhana Motherson Chairman said: “Our focus on being a solutions provider to our customers has been a driving force for this acquisition. We are getting access to a new industry segment of construction and material handling for our precision metal business.

“We believe this business is highly synergistic with Motherson’s existing business and offers ample opportunities to grow this business in India, Mexico & other geographies. This is our fifth acquisition in India in the past 12 months, reaffirming India’s importance in our future plans.”

Recently, Samvardhana Motherson International announced an agreement to acquire an 81% stake in the four-wheeler business of Yachiyo Industry.