Indian Billionaire Sajjan Jindal to acquire up to 48% in MG Motor India; turn it into an Indian entity

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JSW Group Chairman Sajjan Jindal-owned private company aims to buy 45-48 per cent into MG Motor India, a wholly-owned arm of SAIC Motor. JSW Steel and JSW Energy reportedly would not have any exposure.

As per the broad contours of the deal, Jindal would own 45-48 per cent, while 5-8 per cent would be owned by the dealers and Indian employees, and SAIC would hold the rest, according to a report in The Economic Times. The plan has been approved by the Indian government, as per the report.

As much as 51 per cent of the equity will be in Indian hands, and the Chinese would become a minority partner with a maximum 49 per cent, the report added.

A senior government official told the daily it would become an Indian entity, instead of a Chinese one. The official also hinted on a possible India listing in the next few years.

The top management and board would have a larger share of Indians.

The plans are in line with what Jindal had told Business Today at the World Economic Forum in Davos. He said it is time to build a very high-quality car in India, similar to a Tesla, which is what he is really working on.

"We are still in our early days. Idea is to make a car from India that will be for India but will be for a global market as well. So, we would want the car to be made in the country for Indians but also such a technology that should be sold in Europe and Japan as well," he had said.

Meanwhile, Jindal and his son, Parth, were in China to meet the SAIC leadership and discuss the alliance, the report added. Legal agreements have been initiated with a formal binding pact likely in the next three to four months.

MG Motor offers Astor, Hector, and Gloster, along with Comet and ZS electric vehicles in India.

The valuation of MG Motor India is pegged at $1.2-1.5 billion, which is a dip from the original ask of $8-10 billion, the report added.

JSW’s Sajjan Jindal may acquire up to 48% in MG Motor India; turn it into an Indian entity

As much as 51 per cent of the equity will be in Indian hands, and the Chinese would become a minority partner with a maximum 49 per cent.

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MG Motor India to invest $700 million from 2026-28

MG Motor India on Wednesday announced its India 3.0 plan in which the company said it will invest over ₹5,000 crore for the expansion of manufacturing plants in Halol, Gujarat, and hire around 20,000 employees (direct and indirectly).

The Chinese-owned company (SAIC) is also looking for investors from India as part of its 5-year business roadmap to Indianise the business operations for sustainable growth and meaningful impact on society.

The key initiatives that would constitute this are localisation and bringing in the latest technology and indigenising it as well; increasing Indian shareholding over the next 2-4 years by more than 50 per cent; enhancing local sourcing and manufacturing across its operations by 2028 through extensive series of programmes including exploring cell manufacturing and clean hydrogen-cell technology through owned or third-party facilities, the company said.

As part of its growth plan, MG Motor India plans to establish a second manufacturing facility in Gujarat, significantly increasing the combined production output from the current 1.20 lakh to 3 lakh vehicles (including both plants’ capacity).

The company also intends to launch 4-5 new cars, mostly electric vehicle (EV) models, and achieve 65-75 per cent of its sales from the EV portfolio by 2028. To support the widespread adoption of EVs, MG Motor India will strengthen local manufacturing of EV components and establish a battery assembly unit in Gujarat.

“As we pave the way for our next phase of sustainable growth, we have outlined a clear roadmap and vision for 2028. Our growth strategy is centred around strengthening localisation, aligning more closely with the government’s ‘Make in India’ initiative while innovatively augmenting our promise consistently, and diligently meeting the evolving needs of the market,” Rajeev Chaba, CEO Emeritus of MG Motor India, told reporters here.

He also said the announcement for the first step towards investment and shareholding details will be shared within this year. Chaba said the company also plans to list MG Motor India on the Indian bourses, once the shareholding patterns are finalised.

MG Motor India sold around 48,000 vehicles last year and it aims to sell 80,000-1,00,000 lakh units this year.

https://www.google.com/amp/s/www.thehindubusinessline.com/companies/mg-motor-india-to-invest-5000-crore-from-2026-28/article66833924.ece/amp/

 

[STREANH]

Other than provide automotive steel at lower prices, I don't see what JSW can do to add value to the partnership. SAIC should have chosen a better local partner with expertise in automobiles like Force, Ashok Leyland, Hero or Bajaj.

 

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Sajjan Jindal To Buy Ford's Factory, Stake In MG India

NEW DELHI: There could very well be a formidable front opening in the Indian auto market. Steel magnate Sajjan Jindal is stitching up a new company by first buying a sizeable stake into MG Motor India (a unit of Chinese giant SAIC), and then acquiring Ford's factory in Chennai through the new entity. And while all this happens, he is also in active talks with Chinese auto company Leapmotor to license their technology for making electric vehicles.

The move has been in the works for around a year, and a deal between an entity of Sajjan Jindal entity (for this foray) and MG Motor "looks imminent", say sources. TOI had first reported about the talks between Jindal and MG Motor India/SAIC in its editions dated April 25 this year, and the conversations are now headed for completion, with the parties agreeing to go ahead with a deal.
Jindal is seen as a "best fit" partner by MG Motor as the latter faces intense pressure in getting access to funds for expanding its India business. MG had also initiated conversations with Reliance Industries, Hero group, and Premji Invest, though Jindal has now emerged as the frontrunner.

The increased scrutiny on Chinese companies post the India-China border tensions has meant that MG is unable to get investments from its parent, while also facing difficulties in raising funds through other routes.
For Jindal, a partnership with MG and SAIC will mean immediate access to a plethora of technologies as well as vehicle platforms, which would be a major advantage as he looks to challenge well-established Indian and global automotive players operating in the market. "Jindal has been enthusiastic about the plans with MG and SAIC, especially as he gets a firm grip on the operations post a deal. In fact, the Indian company's nominee may be appointed the MD of the new entity," the sources said.

The sources said Jindal may initially get over 30% stake in the company with MG Motor continuing to hold majority along with local financial institutions and employees. However, with a planned IPO at a later stage, the share of the Chinese company will come down, while the Jindal entity will take a controlling stake.

A spokesperson of MG Motor India said this to a questionnaire on the matter, "As stated previously, we are evaluating all options to grow our presence in the country and create a win-win situation for all stakeholders while keeping customers' interests at the core. This would encompass bringing world-class technology, enhancing localisation, and retaining pole position in customer satisfaction for both sales and aftersales. We decline to comment on the query as it is speculative". JSW group refused comment. Ford Motors, which had sold its Sanand plant in Gujarat to Tata Motors, said, "We continue to explore alternatives for the Chennai plant and have nothing further to add."

Sajjan Jindal to buy Ford's factory, stake in MG India - Times of India

India Business News: Indian steel magnate Sajjan Jindal is reportedly forming a new company by acquiring a stake in MG Motor India, a unit of Chinese company SAIC, and pur

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