Samvardhana Motherson Rises On Reports Of Securing Apple Vendorship In India
The latest deal positions Samvardhana Motherson as the second major business group, after Tata, to become an Apple vendor in India.
Shares of auto component maker Samvardhana Motherson International Ltd. gained as much as 5.83% on Monday after media reported that the company was joining Apple's supply chain network.
The Motherson Group company is set to join Apple’s supply chain network in India, according to a report.
The company is entering into a partnership with Hong Kong-based BIEL Crystal Manufactory, a major global supplier of smartphone glass, an Economic Times report said.
The latest deal positions the Vivek Chaand Sehgal-led auto component manufacturer as the second major business group, after Tata, to become an Apple vendor in India.
The report also mentioned that both companies are going to form a 51:49 joint venture. The JV entity is planning to set up a greenfield manufacturing facility in South India, with an estimated investment of Rs 2,000–2,500 crore. The new entity is eyeing achieving revenues of up to Rs 8,500 crore within four to five years of starting operations.
Last month, Samvardhana Motherson International’s subsidiary raised $350 million through the allotment of US dollar-denominated senior, secured and guaranteed notes.
The notes raised by SMRC Automotive Holdings Netherlands B.V., a step-down subsidiary of Samvardhana Motherson International Ltd., have a five-year tenure and will be listed on the Frankfurt Stock Exchange.
The fundraising marked Motherson Group's return to the US dollar bond market after eight years. It was also their first issuance to receive a dual investment grade rating from rating agencies Moody's and Fitch.
Samvardhana Motherson International Ltd., founded in 1986, is a specialized full-system solutions supplier that serves a variety of clients in the automotive sector and beyond. The company operates across Asia, Europe, North America, South America, Australia, and Africa.
Around 10.46 a.m., shares of Samvardhana Motherson were trading 3.25% higher at ₹181.25 apiece on the BSE.
Shares of Samvardhana Motherson were trading 3.25% higher at Rs 181.25 apiece on the BSE after touching intraday high of Rs 185.8 apiece. That compares with 0.68% gains in the BSE Sensex.
