Indian automotive component supplier, Samvardhana Motherson International (SMIL), announced its acquisition of the German firm, Dr. Schneider Group, for €118.3 million ($131.6 million) through an insolvency process.

Dr. Schneider Group, part of Dr. Schneider Holding, is known for producing vehicle interior components like panels and lighting systems.

The German firm had applied for insolvency in September 2022 after an unsuccessful attempt at operational and financial restructuring. SMIL highlighted that the acquisition through the insolvency process is anticipated to finalize by the third quarter of fiscal 2024.

With its headquarters in Kronach, close to the Germany-Czech Republic border, Dr. Schneider Group operates with a workforce of 4,500 across facilities in Germany, Spain, Poland, the U.S., and China.

Vivek Chaand Sehgal, the Chairman of SMIL, expressed confidence in the venture, stating, "We see significant synergies and untapped opportunities, particularly in research and development. We are optimistic about turning the business around."

This acquisition underscores SMIL's aggressive expansion in the auto parts manufacturing domain. Notably, earlier in the month, SMIL also declared its intent to procure a majority share in the four-wheeler segment of Japan's Yachiyo Industry, a move backed by Honda.