Samvardhana Motherson International Ltd.MOTHERSON₹92.75 +0.69%

Samvardhana Motherson International Ltd. has approved a series of acquisitions to expand its global footprint in the automotive components sector. At its board meeting held today, the company approved the proposal to acquire a majority stake in Yutaka Giken Co., Ltd. (YGCL), a Tokyo Stock Exchange-listed company, and its subsidiary, Shinnichi Kogyo Co., Ltd.

Through its wholly owned subsidiary, Motherson Global Investments B.V. (MGI BV), Samvardhana Motherson will acquire 81% of the voting rights in YGCL and 11% in Shinnichi Kogyo, alongside a complete acquisition of Yutaka Autoparts India Private Limited (Yutaka India).

Deal Structure and Timeline

The acquisition process will unfold in multiple stages, subject to merger control approvals from authorities in Japan, the United States, China, Brazil, and Mexico. Key steps include launching a tender offer for YGCL shares, purchasing Yutaka India from YGCL, executing a squeeze-out process to consolidate shareholding, and subsequently acquiring Shinnichi shares from Honda Motor Co., Ltd.

On completion, Motherson will hold 81% of YGCL, with Honda retaining 19% voting rights, while also owning 100% of Yutaka India. The acquisition of Shinnichi Kogyo shares will take place post-tender process and consolidation. Final closure of the transaction is targeted by Q1 FY26-27.

The total cash outflow for the 81% stake in YGCL is estimated at JPY 27 billion (~USD 184 million). The target company is debt-free.

Business Overview of Yutaka Giken

Founded in 1954, Yutaka Giken Co., Ltd. is engaged in the production of metal components and assemblies, including rotors and stators for motors, drive systems, braking systems, and thermal management systems. The company reported a turnover of JPY 179 billion (~USD 1.2 billion) in FY2024-25. Over the last three years, YGCL’s turnover stood at JPY 486 billion in FY23, JPY 490 billion in FY24, and JPY 360 billion in FY25.

The company has 13 manufacturing plants and one R&D facility across nine countries, including Japan, China, the United States, Thailand, Brazil, India, Indonesia, Mexico, and the Philippines.

Strategic Rationale

The acquisition strengthens Motherson’s global partnership with Honda and enhances its position among Japanese OEMs. It provides access to YGCL’s established product portfolio and opens opportunities to cross-sell to other automakers, particularly in emerging markets.

About the Company

Samvardhana Motherson International Limited (SAMIL), India’s largest auto ancillary and among the world’s top 15 automotive suppliers, provides design, engineering, manufacturing, and assembly solutions to leading automakers across 44 countries. For Q1FY26, the company reported consolidated revenues of ₹30,212 crore, a 5% year-on-year growth, supported by resilient organic business and recent acquisitions, though profitability faced a temporary impact from industry headwinds.

Note: The stock price mentioned is as of 3:30 pm.

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Registered office – 2, Floor 3, Wing A, Block A, Salarpuria Softzone, Service Road, Green Glen Layout, Bellandur, Bengaluru South, Bengaluru, Karnataka – 560103, INDIA.

CIN: U65990KA2021PTC146954.