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Auto components maker Samvardhana Motherson International Ltd (SMIL) has inked a 50:50 joint venture pact with Italy's Magneti Marelli Spa to enter the automotive shock absorbers segment in the Indian market.
SMIL will enter the JV through the acquisition of 50% stake in Magneti Marelli Shock Absorbers India Pvt Ltd, the Italian firm's arm in India, SMIL said in a statement.
The JV will leverage Magneti's manufacturing facility in Chakan, Pune, with state-of-the-art product and automation technology, it added.
"It further strengthens our relationship with Magneti Marelli, our partner since 2008. In line with our philosophy of increasing content per vehicle, this JV adds a new product line - shock absorbers, to our portfolio," Samvardhana Motherson Group Chairman V C Sehgal said.
SMIL and Magneti have a JV in India for lighting systems, air intake manifolds and pedal assemblies since 2008.
"This new JV is the most appropriate way of maximising the Magneti Marelli's investment in the shock absorbers sector in India. The partnership will accelerate the process to become a leader in the shock absorbers Indian market and also a supply source for clients on a global scale," Magneti Marelli Spa CEO Eugenio Razelli said.
SMIL is the principal holding company of the Samvardhana Motherson Group (SMG) while Magneti Marelli is part of Fiat Spa.
