Motherson's New Joint Venture SMGCL Co., Ltd. Incorporated with Hamakyorex Co., Ltd. in Japan
Team Finance Saathi
03/Feb/2025

What's covered under the Article:
- Samvardhana Motherson has successfully incorporated its new joint venture, SMGCL Co., Ltd., with Hamakyorex Co., Ltd.
- The new company will focus on comprehensive logistics services, including warehousing and 3PL in Japan.
- Motherson holds 51% stake, with Hamakyorex having 49% in the joint venture.
On February 3, 2025, Samvardhana Motherson International Limited (SMIL) made a major announcement regarding its joint venture with Hamakyorex Co. Ltd.. The new venture, SMGCL Co., Ltd., has been officially incorporated in Japan. This marks an important milestone in Motherson's international expansion, especially in the logistics sector, a key area of focus for the company.
The joint venture brings together SMRC Automotive Holdings Netherlands B.V. (a wholly owned subsidiary of Motherson) and Hamakyorex Co. Ltd., a renowned logistics company based in Japan. This partnership is expected to create a robust platform for providing a wide range of logistics solutions including third-party logistics (3PL), warehousing, packaging, and import/export services (EXIM) in Japan and potentially other regions.
New Venture's Purpose and Market Focus
The primary objective of this joint venture is to enhance Motherson’s presence in the Asian market, particularly in Japan. With the incorporation of SMGCL Co., Ltd., Motherson will have better access to the logistics industry in Japan, a critical hub for global trade. The venture aligns with Motherson’s long-term goal of diversifying and expanding its service offerings across logistics and supply chain management. This will also help Motherson provide more tailored and efficient solutions to industries that require comprehensive supply chain services.
The venture is structured with Motherson holding a 51% stake, and Hamakyorex holding 49%. The equity capital for the venture is set at JPY 50,000,000, divided into 1,000 equity shares, each with a face value of JPY 50,000. Both entities have contributed cash to the venture as part of their respective shareholding percentages.
This collaboration is strategically positioned to leverage Hamakyorex’s strong foothold in Japan's logistics market, combined with Motherson's global presence and automotive expertise. The new company, SMGCL, will help expand the logistics network in the region, providing services that support the global automotive supply chain and other key industries.
Business Outlook
In the upcoming years, SMGCL Co., Ltd. aims to become a key player in Japan's logistics and supply chain solutions market. By tapping into both domestic and international markets, the joint venture will play a pivotal role in enhancing operational efficiency, managing logistics and warehousing needs, and offering integrated packaging and import-export solutions. The venture will focus on providing end-to-end logistics solutions across various sectors, including automotive, retail, and manufacturing industries in Japan and neighboring regions.
Motherson’s collaboration with Hamakyorex demonstrates the company's continued commitment to expanding its international footprint and developing long-term strategic partnerships to drive growth. The new entity aims to contribute significantly to Motherson’s revenue growth, while also offering cost-effective logistics solutions to clients in Japan.
The joint venture, although new, is expected to generate robust revenue streams as the logistics industry in Japan grows. With a clear business model and a focused approach, SMGCL Co., Ltd. is well-positioned to capitalize on the burgeoning demand for integrated supply chain services in Japan.
For investors and stakeholders, this development aligns with Motherson's long-term strategy of becoming a global leader in the automotive supply chain and logistics industries. The incorporation of SMGCL Co., Ltd. is a significant step forward in realizing that vision.
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