Motherson Strengthens Its Aerospace, Health & Medical Businesses with a Series of Acquisitions
#Motherson #Acquisitions #VivekChaandSehgal“These acquisitions will serve as catalysts for our health and medical business which will now have access to global manufacturing and R&D capabilities with new footprints across Europe and India. We look forward to welcoming over 1200 new members into the Motherson family.” - Vivek Chaand Sehgal, Chairman, Motherson
October 2023 : Samvardhana Motherson International Limited (Motherson) announced a series of acquisitions to strengthen its non-automotive businesses further. These acquisitions are spread across the aerospace, health and medical businesses of the company and provide impetus for future growth.
The aerospace division of Motherson is building its capabilities in a phased and strategic manner, enabling it to offer a much wider range of services to aerospace OEMs. Motherson has completed four acquisitions in the Aerospace business segment, from AD Industries, Cirma and SMAST in 2023 to CIM Tools in 2022. Each of these acquisitions brings a unique set of capabilities. AD Industries manufactures a wide range of components and sub-assemblies and has diverse capabilities across four key divisions (sheet metal, hydraulics, mechanical assemblies, and composites). Its ability to work with hard metals, soft metals, and composites simultaneously positions it uniquely in the aerospace ecosystem. CIM tools bring world-class machining and metal treatment capabilities (detailed parts for aerostructures), while Cirma and SMAST provide wiring harness solutions (EWIS) and advance system solutions. The suite of strategically acquired and organically developed competencies complement each other with limited overlap, which will help it offer a much wider range of services to aerospace OEMs globally. With eight facilities in France, the group gets a strategic footprint in the heart of the European aerospace industry and together with nine facilities in best-cost locations across India and Africa, the division is fully equipped to provide high-quality solutions to the aerospace supply chain. The division will also benefit from an impending increase in build rates. With booked business of US$ 1.3 bn+, the division has strong support from its customers, and the necessary competence to cater to the increased demand of the aerospace sector.
The health and medical business division is leveraging the capabilities of Motherson with a focus on diagnostic equipment, patient aid equipment, IT solutions and services. The greenfield plant in Chennai (India) is near SOP and certification audits are underway. The recent acquisitions of AD Industry and Irillic Private Limited are the first two for this division. AD Industry brings valuable capabilities in reinforced carbon composites, which are essential elements for radiology products like patient tables, X-ray detector housing, and more. This capability is highly scalable and can be utilised to cater to emerging applications of prosthetics, orthopaedic equipment, etc. in addition to other applications in radiology. Irillic has strong capabilities in R&D and engineering, having secured two patents in India and the US. Irillic has developed imaging systems (Fluorescence Imaging and 4K Laparoscopy) that provide real-time visualisations for a wide range of medical procedures. The division intends to continue developing solutions in-house, via acquisitions as well as through collaborations with universities, hospital systems, and research centres. With the manufacturing expertise of SAMIL, these recent acquisitions will propel significant growth for the division.
Vivek Chaand Sehgal, Chairman, Motherson said, “As part of Vision 2025, Motherson is increasing its focus on non-automotive businesses, which are built on the core strength and manufacturing DNA of Motherson. Our aerospace business now has a strong presence in Asia, Europe, and Africa, enabling us to better serve and provide solutions to aerospace OEMs and Tier 1 customers globally. These acquisitions will serve as catalysts for our health and medical business which will now have access to global manufacturing and R&D capabilities with new footprints across Europe and India. We look forward to welcoming over 1200 new members into the Motherson family.”
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