Samvardhana Motherson International Limited has approved a ₹200 crore investment into its aerospace subsidiary, CIM Tools Private Limited, marking a significant move into the aviation manufacturing sector. The company’s Board of Directors has agreed to subscribe to up to 20,000 Compulsory Convertible Debentures (CCDs) offering a 9.25% interest rate, as per filings with the BSE and the National Stock Exchange of India. A company spokesperson stated, “This investment will strengthen CIM Tools’ financial standing and enable it to seize new opportunities in the growing aerospace sector.”
Samvardhana Motherson, which acquired a 55% stake in CIM Tools, based in Bengaluru, in April 2022, plans to execute the investment in one or more phases during the current quarter, with conversion into equity shares expected by Q1 FY 2025-26. Once the conversion is completed, the parent company’s stake is projected to rise to between 68% and 74%.
This investment comes at a crucial moment for CIM Tools, which recently achieved Tier-1 supplier status for Airbus commercial aircraft. The company operates two facilities in Bengaluru and is developing two additional plants in Tumakuru, Karnataka. CIM Tools has seen substantial growth since Samvardhana Motherson’s acquisition, with its consolidated turnover increasing from ₹164.2 crore in FY22 to ₹330.8 crore in FY24.
The transaction, classified as a related-party transaction due to existing ownership, follows “arm’s length” pricing standards and does not require regulatory approvals. Known for its automotive components, Samvardhana Motherson is expanding into the aerospace sector as India aims to strengthen its position in the global aviation supply chain.
Samvardhana Motherson International is a global leader in automotive manufacturing, offering an extensive range of solutions including electrical distribution systems, automotive mirrors, polymer processing, and integrated modules. Headquartered in India, the company operates in over 40 countries, serving some of the largest global automakers. With a relentless focus on innovation, sustainability, and customer-centricity,
Samvardhana Motherson has established itself as a trusted partner in the automotive supply chain. Its robust portfolio and strategic acquisitions have enabled the company to adapt to changing industry dynamics, positioning it as a key player in shaping the future of mobility.
