The Times of India: November, 2014
Chennai: Auto component major Motherson Sumi Systems Ltd has lined up investments worth Rs 932 crore for capacity expansion as well as building new facilities.
The money would come from internal accruals, company sources said.
Top company officials said as many as 14 new plants would be built as part of MSSL's aggressive expansion drive.
V C Sehgal, chairman, MSSL, said, "We have received new orders worth euro 1.3 billion. Further, we are setting up 14 new plants funded from internal accruals to serve our customers. The prudent financial management of the company is demonstrated by self-sustaining and funding of Samvardhana Motherson Reflectec (SMR) and Samvardhana Motherson Peguform (SMP)."
Bonds proceeds have been utilized to prepay the loans at SMR and SMP making them 'self-sustained and self-financed.'
MSSL has been on an acquisition spree of late. It acquired the wiring harness business of Stoneridge for US$ 71.4 million or Rs 441 crore.
It also acquired the shareholding from minority shareholders at SMP and SMR as well as the assets of Minda Schenk GmbH (in administration) in Germany.
The expansion drive is part of the company's strategy to scale up for big orders.
According to a statement, group company SMRP BV received new orders for life time value of euro 1.294 billion (Rs 10,088 crore) during April-September 14. MSSL standalone, its JVs & subsidiaries received strong orders.
MSSL saw its consolidated revenues grow by 11%, "the sales and results of wiring harness business of Stoneridge Inc. acquired on August 1, 2014 consolidated for two months," the statement said.
"SMR and SMP, in euro terms, grew by 14% and 7% respectively."
MSSL is the flagship company of the Samvardhana Motherson Group, established in 1986. It is a joint venture between Samvardhana Motherson Group and Sumitomo Wiring Systems (Japan).
The acquisition of mirror business from Visiocorp (now renamed as Samvardhana Motherson Reflectec) and Peguform (now named Samvardhana Motherson Peguform) has helped MSSL evolve as one of the world's leading manufacturers of automotive rear view mirrors and a leading manufacturers of instrument panels, bumpers and door trims in Europe.