The tension stems from Motherson Techno Tools Ltd. (MTTL) — a joint venture between Motherson Group and Sumitomo Electric Hardmetal (Japan) — versus Sumitomo Electric Hardmetal India, which launched independently in early 2023.
What’s the conflict?
- Overlapping market focus
- MTTL was founded to combine Motherson’s Indian market reach with Sumitomo’s tooling tech for metal machining.
- Sumitomo Electric Hardmetal India set up a separate sales entity in Mumbai/Turbhe in July 2022 and started serving clients directly from March 2023.
- Now both entities are vying for the same customer base — namely machine shops and OEMs — causing internal competition.
- MTTL’s objections
- Motherson believes Sumitomo’s separate sales arm undermines the exclusivity and intentions of their JV, creating direct rivalry with its own business.
- Brand and channel confusion
- Shared technology and branding but different sales routes can confuse customers — especially as Sumitomo India sells identical carbide and CBN tooling, potentially at different pricing or delivery terms.
Why now?
- Sumitomo’s strategy: With growing demand in India’s automotive and industrial sectors, Sumitomo Electric initiated its own hardmetal sales company with significant capital (~₹160 million) aiming for more customer acquisitions, especially those potential-customers & OEM’s which are less focused by MTTL irrespective.
- Channel conflict emerged: This direct market approach by Sumitomo overlaps with MTTL’s business, prompting Motherson to raise objections, given their existing JV commitments and investments.
Summary
- MTTL, the JV, expects exclusive market coordination and no direct competition from Sumitomo, but they both are confronting many-times and it’s arising huge conflict.
- Sumitomo Electric Hardmetal India, a separate entity, is now selling similar high-performance carbide and CBN tooling directly, creating conflict over customers, margins, and brand identity.
- Expect Motherson to push for alignment on sales territories, product channels, or possibly seeking contractual protection to reduce overlap.
- Losing trust of Motherson on Sumitomo as the Sumitomo’s Hardmetal Division is dominating the Indian market by aquiring MTTL’s clients, due to this Sumitomo’s Wiring-Harness business is in a huge threat as the Motherson-Group has started searching for other Major suppliers in this product category.
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