Mumbai, September 21: Auto components major Samvardhana Motherson International Limited (SAMIL), has announced the acquisition of a 50.1% stake in defence focused circular connector manufacturer Rotary Connectors in a transaction worth about ₹500.4 crores. The acquisition, made through its wholly owned subsidiary Samvardhana Motherson Adsys Tech Limited (SMAST), will make Rotary Connectors its step down subsidiary, as the group aims to strengthen its presence beyond automotives and into defence and aerospace.
The existing promoters of Rotary Connectors will continue to retain the remaining 49.9% stake, with the partnership model aimed to leverage the company;s technical expertise and established market presence with Motherson’s global operational excellence and manufacturing scale.
“The Strategic Partnership supports Motherson Group’s vision of diversifying and scaling its Aerospace and Defence business vertical, particularly in the field of Electrical Wiring Interconnect System (EWIS). Further, Motherson’s established footprint in Aerospace and Defence, along with its geographic reach and customer access, can potentially be leveraged to accelerate the growth of the Target’s business, Motherson said in a regulatory filing.
This investment aligns with Motherson’s broader “Vision 2025” and beyond, which emphasizes reducing dependency on the traditional automotive sector by expanding into adjacent high-technology domains. The aerospace and defense markets offer long-term growth potential driven by increased global defense spending and the ongoing modernization of aviation fleets.
This investment aligns with Motherson’s ‘Vision 2025’ roadmap, which aims to reach a $108 billion gross revenue goal by FY30 by leveraging its manufacturing prowess to expand beyond the automotive ecosystem.
