Motherson subsidiary hit with ESIC penalty for contribution delay

Samvardhana Motherson International Limited (SAMIL) announced that its subsidiary, Saddles International Automotive & Aviation Interiors Pvt Ltd. (Saddles), has been penalized by the Employee State Insurance Corporation (ESIC) Pune. The penalty, amounting to ₹16,05,343, was imposed due to delayed payment of employer and employee contributions under the ESI Act 1950. The contributions relate to the period from September 2020 to January 2022, which predates Saddles' acquisition by SAMIL on July 13, 2023.

Despite the penalty, SAMIL stated that there will be no financial impact on the listed entity. This is because the penalty is covered by a seller indemnity, ensuring the amount will be recovered accordingly. The company explained that the submission of this penalty information was delayed because it was under review by the relevant parties.

The intimation, filed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, was sent to both the National Stock Exchange of India Limited and BSE Limited. The communication was signed by Alok Goel, company secretary, and dated November 22, 2025.