SAMIL Expands Portfolio with ₹9.23 Cr Acquisition of Thin Film Coating Firm Nissin India

Board Approves Acquisition

Samvardhana Motherson International Ltd (SAMIL) announced on April 27, 2026, that its board has approved acquiring a 51% equity stake in Nissin Advanced Coating Indo Co. Private Limited (Nissin India) for ₹9.23 Crores in cash. The payment is to Nissin Electric Co. Ltd, Japan. This deal will ultimately make Nissin India an indirect wholly-owned subsidiary of SAMIL. The transaction is anticipated to close by the end of the first quarter of fiscal year 2027 and does not require governmental or regulatory approvals. Nissin India reported a turnover of ₹30.4 Crores and EBITDA of ₹10.3 Crores for fiscal year 2026.

Strategic Rationale

This acquisition signifies SAMIL's strategic entry into thin film coating services and Physical Vapor Deposition (PVD) systems. These capabilities align with SAMIL's 'Emerging Businesses' segment, broadening its service offerings beyond traditional automotive components. By integrating Nissin India, SAMIL aims to enhance its technological foundation and expand its solution portfolio for a diverse client base, leveraging its global manufacturing and engineering strengths.

Background on SAMIL and Nissin India

SAMIL, previously known as Motherson Sumi Systems, has a well-established record of strategic acquisitions, having integrated over 43 companies since 2002. This approach has fueled its expansion globally, diversified its product range, and enabled entry into sectors such as aerospace, health, and medical. Nissin India specializes in advanced thin film coating services, including PVD, which are vital for improving the performance and durability of automotive parts, molds, and tools.

Key Changes and Impact

Following the acquisition, SAMIL's business portfolio will officially expand to include specialized thin film coating and PVD systems. Nissin India will be fully integrated into SAMIL's group structure as an indirect wholly-owned subsidiary. This move is expected to bolster SAMIL's technological capabilities within its 'Emerging Businesses' vertical and reflects the company's ongoing strategy of inorganic growth to acquire new competencies.

Considerations and Risks

The completion of the acquisition remains subject to the satisfactory fulfillment of conditions precedent. Separately, SAMIL's US subsidiary, Motherson SAS Automotive Services USA Inc., recently faced a penalty of $28,518 from California tax authorities concerning sales classification issues in FY25. The company also clarified in April 2026 that industry-wide labor protests had minimal operational impact, attributing these issues to misinformation.

Industry Context

While direct listed peers for this specialized niche are scarce, companies such as NIHON PARKERIZING (INDIA) PVT. LTD. provide comparable surface treatment and thin film technologies for the automotive sector. SAMIL's move into specialized coating services complements its broader diversification strategy within the 'Emerging Businesses' segment, echoing its past expansions into non-automotive areas.

Transaction Details

For fiscal year 2026, Nissin India reported a turnover of ₹30.4 Crores and an EBITDA of ₹10.3 Crores. SAMIL's acquisition of a 51% stake involves a cash consideration of ₹9.23 Crores.

Investor Watchlist

Investors will monitor the satisfactory completion of the acquisition's conditions precedent. Key events to track include the final closing of the transaction, expected by the end of Q1 FY2026-27, and the subsequent integration of Nissin India's operations into SAMIL's existing business segments. Evaluating the strategic contribution of these new thin film coating services to SAMIL's future revenue and margins will also be important.