Sajjan Jindal's JSW Group Looks To Acquire Majority Stake In MG Motor India: Report

The acquisition plan by JSW Group will ensure that at least 51 per cent of the company will be in Indian control, while the Chinese will become a minority partner with a maximum holding of 49 per cent

Chairman and Managing Director of JSW Group of companies, Sajjan Jindal, is set to own between 45 and 48 per cent of MG Motor India, citing sources privy to the development ET reported. MG Motor India is a wholly owned arm of the Shanghai-headquartered SAIC Motor. According to the ET report, majority acquisition would make the automaker into an Indian entity, with the dealers and Indian employees owning around 5-8 per cent. SAIC, the parent company, will hold on to the remaining percentage, according to ET.

This acquisition plan will ensure that at least 51 per cent of the company will be in Indian control, while the Chinese will become a minority partner with a maximum holding of 49 per cent. The report also mentioned that JSW group's listed entities, JSW Steel and JSW Energy, will not have any exposure to this venture.

MG Motor in May had announced it plans to offer majority stakes to Indian local partners over the next 2-4 years as part of a five-year business road map in the country. Additionally, the automaker has lined up Rs 5,000 crore to expand operations in the country by 2028. The company's plans to bring in more capital to the country from its Chinese parent have not been successful so far, the report added. MG Motor is a British brand that is currently owned by China's largest automaker SAIC Motor Corp.

As part of this transition, the top management and board of the company will have a larger share of Indians. This potential acquisition comes at a time when the Indian government has reportedly asked Chinese smartphone makers to appoint Indian chief executive officers, chief operating officers, chief financial officers, and chief technical officers for their Indian operations.

Additionally, the government has also directed them to appoint Indian contract manufacturers, expand local manufacturing down to the component level through joint ventures with Indian businesses, and hire local distributors. At present, there are Chinese distributors for some of these companies that are operating in India.

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