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Home arrow News arrow Auto component arrow Motherson Sumi consolidates businesses, Set to become $5Bn entity by 2015
Motherson Sumi consolidates businesses, Set to become $5Bn entity by 2015 Print E-mail
Written by Vijay   
Saturday, 30 April 2011
Mumbai: Motherson Sumi Systems Ltd (MSSL) will merge three group firms with itself. The company aims to become a $5 Billion entity by 2015. As of 2009-10, the MSSL group had a turnover of $1.5 billion.

Sumi Motherson Innovative Engineering Limited (SMIEL), a company engaged in the manufacture of components for wiring harnesses and other plastic components will be merged with MSSL. SMIEL registered sales of Rs 135.92 Crores in 2009-10, a Profit before tax of Rs 13.68 crores and a Profit after Tax of Rs 8.59 crores.

The Board of Directors of the Company has approved appointment of independent valuer for determining fair exchange ratio for the merger.

The company's wholly owned subsidiary, MSSL Global Wiring Limited,engaged in the manufacture of wiring harnesses at SEZ Kandla will be merged with MSSL. India Nails Manufacturing Pvt. Ltd., a wholly owned subsidiary having mainly land and building, will also be merged with MSSL.

These mergers are expected to strengthen MSSL's ability to develop and localize components of wiring harnesses. With the changed scenario of vehicles being designed in/for India, this business under one window will help MSSL to service its customers for wiring harness business better. This together with MSSL wire division will help the company to cut down development time.

The addition of non wiring harness business to MSSL's existing plastic business (MATE) is expected to bring growth as well as further economies of scale for MATE. SMIEL's non wiring harness business customers list include Maruti Suzuki, GE Healthcare , Schneider Electric, Continental Automotive, Bosch India etc.

SMIEL has one of the best tool rooms in India, which is primarily used for developing molds for wiring harness components. This will add tremendous capability to MSSL for doing further developments of plastic components.

MSSL is one of the key customers (about 39 %) of SMIEL. SMIEL is doing similar business of plastic components as well. The merger of SMIEL into MSSL will consolidate the businesses within the Group.

MSSL, the flagship company of the Samvardhana Motherson Group, is one of the largest manufacturers of Automotive Rearview Mirrors for passenger cars in the world together with being the largest manufacturer of automotive wiring harnesses in India. It also supplies plastic components and modules to the automotive industry. Other products  comprise rubber components for automotive and industrial applications, high precision machined metal pads, injection molding tools and HVAC Systems.

The company is a joint venture between Samvardhana Motherson Group and Sumitomo Wiring Systems (Japan).

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