Samvardhana Motherson to acquire the frame manufacturing and assembly operation assets of Daimler India Commercial Vehicles, which is a subsidiary of the German Daimler Truck AG. The acquisition is expected to be completed during the third quarter of fiscal year 2022-23, subject to customary closing conditions and necessary regulatory approvals.
The purchase of these assets will change its status from contract manufacturer to the principal manufacturer of long members for the frame assembly business. Based on the volumes produced by Daimler India in fiscal 2021-22 and the terms of the supply agreement, “the revenue generated (by the assets being bought), would have been approximately Rs 3,000 million”, the company claimed.