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Automotive components manufacturer Samvardhana Motherson International is buying a 50.1% stake in Rotary Connectors for ₹500 crore. The deal will be made through Motherson’s wholly owned subsidiary, SMAST.
What does it do: Rotary Connectors makes specialised military-grade connectors that transfer power and signals between different parts of machines. Think of them as high-performance plugs and sockets used in fighter jets, helicopters, missiles, radars and other defence equipment.
The company earned ₹123.5 crore in revenue in FY26 and has three manufacturing plants in Bengaluru.
Why does it matter: after the deal, Motherson will control Rotary Connectors, while its existing promoters will continue to own the remaining 49.9%. The acquisition will help Motherson grow its aerospace and defence business, especially in electrical wiring and connectivity systems.
Motherson also expects its global network and customer base to help Rotary expand into new markets and win more business. The deal is expected to be completed by Q4 FY27.
The bigger picture: the deal comes at a time when India is significantly increasing its defence spending. The country’s defence budget has grown from ₹2.53 lakh crore in 2013-14 to ₹7.85 lakh crore in 2026-27. Spending on defence equipment has also more than doubled, with capital expenditure rising from ₹94,588 crore in 2014-15 to ₹2.19 lakh crore in 2026-27.
Private companies are becoming a bigger part of this ecosystem too, contributing 24% of India’s defence production, while public-sector companies accounted for the remaining 76%.
PIB
