Samvardhana Motherson International Limited (SAMIL) announced the approval to form a strategic Joint Venture (JV) in Dubai, UAE, with Hellmann Worldwide Logistics (MESA) Holding Limited. The JV aims to offer world-class supply chain and logistics solutions to the automotive sector globally, excluding Japan. SAMIL will hold a 51% controlling stake in the new entity, with operations commencing following incorporation.
Strategic Expansion into Global Logistics
The Board of Directors of Samvardhana Motherson International Limited (“SAMIL”) has formally approved the execution of a Joint Venture Agreement with Hellmann Worldwide Logistics (MESA) Holding Limited, based in the UAE. This strategic partnership is designed to significantly enhance SAMIL’s capability through its Logistics Solution Division, enabling the provision of world-class supply chain solutions primarily tailored for the automotive industry.
The collaboration intends to bolster resilience, efficiency, and stability across global supply chains by integrating third-party (3PL) and fourth-party (4PL) logistics services on an international scale, with the specific exclusion of the Japanese market.
Joint Venture Structure and Capitalization
The new entity will be incorporated as a Joint Venture Company (JVC) in Dubai, UAE. The shareholding structure has been finalized as follows:
- SAMIL: 51% Shareholding
- Hellmann: 49% Shareholding
The JVC will commence operations with an authorized share capital of USD 10,000,000 (equivalent to AED 36,725,000). The initial paid-up share capital is set at USD 1,000,000 (equivalent to AED 3,672,500), which both parties will subscribe to in proportion to their agreed shareholding ratios. This JV is explicitly confirmed not to be a related party transaction for the Company.
Governance and Operational Details
The strategic joint venture is slated to become operational immediately upon the incorporation of the JVC in Dubai. Governance of the new Board will feature a minimum of six directors. The appointing parties are allocated seats as follows:
- SAMIL: 3 directors, including the Chairman
- Hellmann: 3 directors
The Board Meeting where this proposal was approved commenced on March 19, 2026, at 1630 Hours (IST) and concluded at 1725 Hours (IST).
Source: BSE
