Samvardhana Motherson International Ltd has given the green light to sell the fixed assets and inventory of its joint venture, Marelli Motherson Auto Suspension Parts Pvt Ltd, to Gabriel India Ltd for ₹60 crore (approximately INR 600 million), as per a regulatory filing. The deal is expected to conclude by the Q1-Q2 period of 2025-26.
In a statement, Samvardhana Motherson explained that after several years of operations, both partners in the joint venture have mutually decided that the current product lineup under the Marelli Motherson Auto Suspension brand does not align with their strategic goals in India. The joint venture, formed in 2014, is a 50:50 partnership between Marelli Europe S.P.A. and Samvardhana Motherson. It was established to produce suspension components—such as shock absorbers, strut assemblies, gas lifters, dampers, and door balancers—for both passenger and commercial vehicles in India.
The transaction involves the sale of fixed assets, inventory, and the transfer of employees and business contracts. However, the joint venture will retain other assets and liabilities, including debtors, creditors, and cash reserves.
As per the filing, the 50% shareholding in the JV held by Samvardhana Motherson is valued at ₹46.1 crore (INR 461 million). After the deal, Samvardhana Motherson’s books will be updated to reflect the reduced value of its investment, as the net consideration from the sale will be less than the carrying value of the investment.
Despite this sale, Samvardhana Motherson emphasized that its relationship with its JV partner remains strong, and business will continue as usual for its other ventures, including lighting, HVAC, and electronics. For the financial year 2023-24, Marelli Motherson Auto Suspension reported revenues of ₹260 crore, which contributed 0.3% to Samvardhana Motherson’s total consolidated revenue of ₹98,691 crore.
Gabriel India, the buyer of the joint venture, is part of Anand Group and recorded a revenue of ₹3,364.7 crore in FY24. The company is a leading producer of shock absorbers in India, serving various segments including two-wheelers, passenger cars, commercial vehicles, and the aftermarket.
