Samvardhana Motherson International Limited (SAMIL) has announced the sale of its subsidiary’s (Samvardhana Motherson Innovative Solutions Limited – SMISL) 26% equity stake in AES (India) Engineering Limited (AES India). The transaction, valued at ₹68,64,000, is part of a strategic decision by both joint venture partners to pursue independent business strategies. The deal is expected to close by Q3 FY 2026-27.
Strategic Divestment in Joint Venture
Samvardhana Motherson International Limited (SAMIL) has disclosed the sale of its subsidiary, Samvardhana Motherson Innovative Solutions Limited (SMISL), stake in AES (India) Engineering Limited (AES India). The divestment involves SMISL selling its entire 26% equity holding in AES India, a joint venture established in 2005. The transaction follows a mutual agreement between the joint venture partners, SMISL and T-Net Japan Co., Ltd., to pursue distinct business strategies and focus on core competencies.
Transaction Details and Financials
The purchase consideration for the equity shares held by SMISL in AES India has been agreed at ₹68,64,000. The announcement highlights that the effective capital of SAMIL in AES India is 26%, aligning with SMISL’s shareholding. Despite the transaction, the company has deemed the proposed deal as non-material to Motherson’s overall portfolio, given the limited scale of AES India’s business relative to SAMIL’s consolidated operations. As of March 31, 2026, AES India’s revenue was INR 178.6 million, with its net worth standing at INR 4.7 million. These figures are considered negligible in comparison to SAMIL’s consolidated revenue of INR 12,61,036.7 million and net worth of INR 3,47,228.8 million.
Timeline and Future Steps
The agreement for the sale has been entered into, and the transaction is expected to be completed by the third quarter of the financial year 2026-27, subject to the satisfactory fulfillment of any pre-conditions. The buyer, T-Net Japan Co., Ltd., is an existing shareholder in AES India and is engaged in the business of development of social infrastructure and manufacturing sites in Japan.
Source: BSE
