Motherson strengthens its machining business in India, acquires Rollon Hydraulics
Noida (India), 10th July 2023 : Samvardhana Motherson International Limited (SAMIL) has entered into an agreement to acquire 100% stake in Rollon Hydraulics Private Limited (“Rollon”). Rollon is engaged in manufacturing, assembly and supply of high precision turned parts, spools, and other machined components with critical engineering applications for the Agriculture and Off- Highway segment from its two facilities based out of Bengaluru (India).
Rollon is engaged in high-precision machining and sub-assembly of highly complex components for the off-highway segment and has a vertically integrated unit engaged in surface treatment of machined parts. The company reported revenues of ~INR 60 crores for FY23, with a healthy profitability.
Motherson through its Precision Metals & Modules business division is a leading supplier to the automotive and non-automotive industry. Its manufacturing facilities across India and Mexico for precision machining are equipped with state-of-the-art CNC machines and highly customised special purpose machines, supported by surface treatment and metrological measuring facilities. The company has specialised technology and expertise for precision machining parts with capabilities like turning, drilling, grinding, milling tools and machining etc.
Following the industry trends of supplier consolidation, coupled with global footprint of Motherson, this acquisition will create further organic growth opportunities through increase of global share of business with existing and new customers.
The transaction will also provide Motherson, access to a pedigreed customer base across the off-highway industry along with specialised machining, plating, surface treatment and sub-assembly capabilities. The proposed transaction will contribute towards the growth of Precision Metals & Modules division.
Commenting of the deal, Mr Vivek Chaand Sehgal, Chairman, Motherson said,
“Our focus on being a solutions provider to our customers has been a driving force for this acquisition. We are getting access to a new industry segment of construction and material handling for our precision metal business. We believe this business is highly synergistic with Motherson’s existing business and offers ample opportunities to grow this business in India, Mexico & other geographies. This is our fifth acquisition in India in the past 12 months, reaffirming India’s importance in our future plans.”