Samvardhana Motherson International Limited (SAMIL) has approved a Joint Venture Agreement with Egtronics Co. Ltd., a company listed on KOSDAQ South Korea.
The strategic partnership aims to provide innovative vehicle power electronics for clean mobility (Electric Vehicles and Hydrogen) to customers in the commercial vehicle segment.
This collaboration will enhance the technological capabilities of SAMIL's Wiring Harness Division by incorporating Egtronics' patented product portfolio.
The product portfolio includes, but is not limited to, DC-DC Converters, Auxiliary Inverters, Traction Inverters, On-board chargers, and Power Distribution Units (PDUs) for commercial vehicles.
The Joint Venture Company (JVC) will establish manufacturing operations in India with global sales, excluding South Korea.
The shareholding structure of the JVC will be 51% for SAMIL (along with nominee shareholders) and 49% for Egtronics.
The JVC will be incorporated in India with an initial paid-up share capital of ₹500,000 (Indian Rupees Five Lakhs only), comprising 50,000 equity shares of ₹10 each.
The Board of the JVC will consist of a minimum of 5 Directors, with 3 appointed by SAMIL and 2 by Egtronics.
The JVC will be consolidated by SAMIL.
This transaction is not a related party transaction for the Company.