SAMIL acquiring assets of frame assembly business from Daimler India.
Samvardhana Motherson International Limited (SAMIL) (formerly Motherson Sumi Systems Ltd.) has signed a strategic agreement to acquire assets of frame manufacturing and assembly operations from Daimler India Commercial Vehicles Pvt. Ltd. (DICV) operated out of its facilities in Chennai at book value. Also, as a part of the transaction SAMIL has signed a long-term agreement with DICV for supply of the complete frame assembly.
SAMIL (via its 100% subsidiary) runs the manufacturing operations of the frame manufacturing facility of DICV. The frame assembly operations are managed by DICV itself in a separate facility. Once the transaction is completed, SAMIL will own the assets (including long term leasehold rights for land) and will run end to end operations for frame manufacturing and assembly and supply to DICV under the long-term supply contract.