Samvardhana Motherson International Ltd
Samvardhana Motherson International Ltd (MOTHERSON)

Samvardhana Motherson International Ltd (MOTHERSON)

₹1093.02%

Key Stats

₹104
Day's Price Range
₹111.5
₹102.75
52-Week Price Range
₹214.05
1 Month Return-15.8 %
3 Month Return-10.12 %
1 Year Return-53.18 %

Company Financials

  • Quarterly
  • Annual
Value in ₹ crore

Peer Comparsion

PE
Rank 14
59.03
EPS
Rank 19
₹1.79
BVPS
Rank 19
₹45.57
Dividend Yield
Rank 8
0.74%
ROE
Rank 20
6.18%
Price To Book Ratio
Rank 3
2.32
Debt To Asset
Rank 5
0.73

Company Information

Motherson Sumi Systems Limited MSSL is one of the worlds leading specialized automotive component manufacturing companies for Original Equipment Manufacturers OEMs. With a diverse global customer base of nearly all leading automobile manufacturers globally the company has a presence in 36 countries across six continents. MSSL is currently the largest auto ancillary in India. The present product range of MSSL comprises of wiring harnesses rear view mirrors moulded plastic parts including car interior and exterior parts bumpers dashboards and door trims complete modules rubber components for automotive and industrial applications high precision machined metal parts injection molding tools and HVAC systems.Motherson Sumi Systems Ltd was incorporated in the year 1986 as a joint venture between Samvardhana Motherson Group and Sumitomo Wiring Systems Japan. The company was incorporated with the objective of manufacturing integrated wiring harnesses wires high tension cords and components for integrated wiring harnesses including plastic and metal parts. In the year 1989 the company commenced manufacturing wiring harness components and plastic parts as a backward integration. In the year 1991 the company through their joint venture Motherson Pudenz Wickmann Ltd commenced manufacturing fuses as a backward integration. In the year 1993 the company launched wire division namely Motherson Sumi Electric Wires.In October 1995 the company in collaboration with Kromberg and Schubert AG Germany and formed Kromberg Schubert Motherson Sumi Systems Pvt Ltd for the manufacture of integrated wiring harnesses which is supplied to Mercedes BerzTelco joint venture BMWHero Motors joint venture for 650 cc motor cycles. In December 2005 they incorporated Britax Motherson Pvt Ltd in technical and financial collaboration with Britax International UK for manufacture of Auto Mirrors.In the year 1997 the company formed a joint venture namely Kyungshin Industrial Motherson Ltd for manufacturing wiring harness for Hyundai. The companys joint venture BR Motherson Automotive Pvt Ltd set up a plant for manufacturing Blow Moulded Auto Components and Door Panels. Also Motherson Auto Components Engineering Ltd Motherson Pudenz Fuses Ltd and Motherson Global Pte Ltd Singapore became the subsidiaries of the company during the year.In the year 1998 the company made a technical agreement with WOCO and commissioned manufacturing of rubber component. In the year 1999 the company established a representative office in Austria and in the next year they established another representative office in Singapore. In the year 2001 the company commissioned the silicon rubber moulding facility in their first overseas manufacturing base in Sharjah. Motherson Automotive Technologies Engineering and Motherson Sumi Electric Wires were amalgamated with the company during the year. In the year 2002 the company set up MSSL Ireland Pvt Ltd in Ireland. Also they established MSSL Mideast FZE in Sharjah UAE. In the year 2003 they established a representative office in UK. During the year 200304 the company set up 100 subsidiaries namely Motherson Electrical Wires Lanka Pvt Ltd in Sri Lanka for manufacturing of wires and MSSL Handels GmbH in Austria. Also the company in association with Hag Kunststofftechnik GmbH set up a subsidiary namely MSSL Hag Toolings Ltd in SAIF Zone Sharjah. In March 2004 the company set up 100 subsidiary namely MSSL S Pte Ltd in Singapore. The activities relating to the representative office of Singapore are being transferred to this subsidiary. In March 2004 the company entered into a joint venture agreement with WOCO Franz Josef Wolf Holding GmbH WOCO Industrieteknik GmbH and established a company namely WOCO Motherson Elastomer Ltd. The company transferred their Elastomer business to the joint venture company as a going concern with effect from June 1 2004.During the year 200405 the company expanded their Noida facilities with a new dedicated unit for exports. They started a new unit at Chennai to cater to the requirements of Hyundai Motors and for exports to GM Holden Australia. Also the company established a representative office in Germany.During the year 200506 Motherson Advance Polymers Ltd and Balda Motherson Info Devices Ltd became 100 subsidiaries of the company. In August 2005 the company acquired GS Kunststofftechnik GmbH Germany to consolidate their polymer business. In January 2006 the companys joint venture subsidiary Global Environment Management FZC set up a 100 subsidiary Global Environment Management Australia Pty Ltd Australia. During the year Draexlmaier Motherson Electrical Systems I Ltd a 100 subsidiary of the company was amalgamated with the company with effect from April 1 2005. Also WOCO Motherson Elastomer Ltd and WOCO Motherson Advanced Rubber Technologies Ltd ceased to be subsidiaries of the company.During the year 200607 Motherson Advance Polymers Ltd a 100 subsidiary of the company merged with the company with effect from February 1 2006. In August 2006 the company purchased the business and assets of ASL Systems Ltd through their 100 subsidiary MSSL GB Ltd. In October 2006 they incorporated MSSL Australia Pty Ltd.In November 2006 the company acquired a plastic injection molding company FP Formagrau s.r.o. in Czech Republic. In February 2007 they incorporated two subsidiaries namely Motherson Elastomers Pty Ltd and Motherson Investments Pty Ltd through MSSL Australia Pty Ltd. These two subsidiaries acquired the business and assets of Empire Rubber in Australia from Huon Corporation Pty Ltd which was engaged in rubber mixing and manufacture of rubber extruded components.During the year 200708 MSSL GmbH the companys wholly owned subsidiary through MSSL Mideast FZE entered into an agreement with Dremotec GmbH Co KG and Sirius Invest AG and incorporated another subsidiary Motherson Orca Precision Technology GmbH. Subsequently the business of Mothersonsumi Reiner GmbH 100 subsidiary of MSSL GmbH was transferred to the newly incorporated entity with effect from January 01 2008. Also they established a representative office in Italy during the year.During the year 200708 the company set up two new plants in Noida and Pune to meet the requirements of domestic and export market. They increased the extraction capacity of Motherson Sumi Electrical Wires Bangalore from 18000 km to 26000 km per month.On 7 March 2009 Motherson Sumi Systems Limited MSSL announced that it has completed the acquisition of Visiocorp Group on 6 March 2009 for which the company had signed terms sheet and made announcement on 2 January 2009. MSSL subsidiary Samvardhana Motherson Visiocorp Solution Ltd. SMVSL has acquired all the subsidiaries of Visiocorp plc in administration for a cash consideration of approximately Euro 25 million and allotment of 5 consideration shares having face value of Euro 1.5 million. The acquisition from Visiocorp plc in administration comprises only assets in the form of shares of the operating companies and no debt is being acquired from Visiocorp plc in administration. The acquired subsidiaries also have minimal debt. SMVSL is 95 owned by Samvardhana Motherson Global Holdings Limited SMGHL a joint venture between MSSL and Samvardhana Motherson Finance Limited SMFL in the ratio of 51:49. In 2008 Visiocorp Group had a turnover of approximately Euro 660 million USD 832 million unaudited. The various operating companies include manufacturing locations at USA Mexico Australia UK Hungary Spain France China India and Korea together with design and engineering centers at each location and at Germany. The diverse customer profile includes BMW Chrysler Daimler Ford/Volvo GM Hyundai/Kia Mahindra Mahindra Maruti Suzuki Mitsubishi Porsche PSA Renault/Nissan Tata JLR Toyota Volkswagen/Audi etc.Visiocorp is a market leader in exterior rear view mirror systems and brings with it cutting edge technology covering the complete range of mirrors from lowend entry segments to highend luxury segments. The product range also includes specialized unique solutions like the Telescopic Trailer Tow Mirrors and camera based Blind Spot Detection systems. MSSL has a highly successful joint venture with Visiocorp in India for the past 13 years and is a leading supplier of rearview mirror systems to automobile manufacturers in India. This acquisition will lead to significant leveraging of business synergies as the existing business of Samvardhana Motherson Group greatly supplements Visiocorp needs for products and services particularly in design engineering services IT injection moulded parts assemblies moulds and wiring harnesses. With this acquisition Samvardhana Motherson Group has become one of the largest manufacturers of automotive mirrors in the world.The Board of Directors of Motherson Sumi Systems Limited MSSL at its meeting held on 29 June 2009 approved the proposal for purchase of shareholding held by Wilhelm PUDENZ GmbH and WICKMANN Werke GmbH in Motherson PUDENZ WICKMANN Ltd. MPWL. On transfer of these shares MPWL will become the wholly owned subsidiary of MSSL. MPWL registered net sales of Rs 2.64 crore and profit after tax of Rs 0.42 crore for the year ended 31 March 2009.At the Board Meeting of Motherson Sumi Systems Limited MSSL held on 28 April 2011 the Board of Directors of the company approved the merger of Sumi Motherson Innovative Engineering Limited SMIEL a company engaged in the manufacture of components for wiring harnesses and other plastic components with Motherson Sumi Systems Limited MSSL. The Board also approved the merger of companys wholly owned subsidiary MSSL Global Wiring Limited a company engaged in the manufacture of wiring harnesses at SEZ Kandla with Motherson Sumi Systems Limited MSSL. The Board also approved the merger of India Nails Manufacturing Pvt. Ltd. wholly owned subsidiary having mainly land and building with Motherson Sumi Systems Limited MSSL. The merger of SMIEL into MSSL will add significant value to MSSLs existing business of wiring harness and plastic molding. SMIEL is presently subsidiary of Sumitomo Wiring Systems SWS. The proposed merger of SMIEL into MSSL will bring the entire business of wiring harness into one entity. MSSL is one of the key customers about 39 of SMIEL. SMIEL is doing similar business of plastic components as well. The Board of Directors of Motherson Sumi Systems Ltd MSSL at its meeting held on 13 July 2011 in principle approved the proposal to jointly with Samvardhana Motherson Finance Limited acquire 80 of the shareholding of Peguform Group Germany from Cross Industries AG. The acquisition would be made through a joint venture in which MSSL would hold 51 stake and Samvardhana Motherson Finance Limited would hold 49 stake. MSSL has through its subsidiary executed binding agreement with Cross Industries for acquiring 80 stake in Peguform GmbH and Peguform Iberica SL together with 50 stake in Wethje Entwicklungs GmbH and Wethje Carbon Composite GmbH. The total share consideration for the transaction is Euro 141.5 million of which MSSL share shall be Euro 72.165 million. MSSL proposes to raise loan overseas to finance this transaction. Peguform is a leading full service supplier off differentiated high quality interior and exterior products for the automotive and related industries. Peguform has a strong presence in Europe supplying to major premium German brands. Fort the calendar year 2010 Peguform Group registered revenue of Euro 1355.53 million EBITDA of Euro 66.87 million and profit after tax of Euro 6.8 million.The Board of Directors of Motherson Sumi Systems Ltd MSSL at its meeting held on 9 August 2012 recommended the issue of bonus shares in the ratio of 1:2 1 share for 2 shares held subject to the approval of the shareholders in the ensuing Annual Genera Meeting scheduled to be held on 10 September 2012.The Board of Directors of Motherson Sumi Systems Ltd MSSL at its meeting held on 1 November 2013 recommended the issue of bonus shares in the ratio of 1 one bonus share against 2 two existing equity shares subject to the approval of the shareholders.On 10 August 2014 Motherson Sumi Systems Ltd MSSL announced that it has successfully closed the deal for acquiring wiring harness business of Stoneridge Inc. in a record time on receipt of necessary regulatory approvals. As announced previously on 27 May 2014 MSSL had signed an agreement to acquire the Wiring Harness business of Stoneridge Inc. through asset purchase at consideration of US 65.7 million on no cash no debt basis. The total cash outlay of US 71.38 million includes increase in working capital and cash/bank balances subject to postclosing adjustments. Included in the transaction are six manufacturing facilities located in Portland Indiana USA Chihuahua Mexico Saltillo Mexico and Monclova Mexico as well as an engineering and administrative center located in Warren Ohio USA. Stoneridges Wiring Business designs and manufactures wiring harness products for sale principally to the commercial agricultural and offhighway vehicle markets as well as assembles entire instrument panels that are configured specifically to an OEM customers specifications in the commercial vehicle market. The addition of these manufacturing facilities would enable MSSL to service the growing requirement of the customers in the region. With this acquisition MSSL now has over 45 plants related to wiring harness business.On 15 December 2014 Motherson Sumi Systems Ltd. MSSL through its subsidiary Samvardhana Motherson Automotive Systems Group B.V. Netherlands SMRP BV announced the signing of an agreement for purchase of assets of Scherer Trier group ST Germany from its administrator. The consideration payable is approximately Euro 36 million for the assets including land and building inventories along with the shareholding held in Mexican entities. This acquisition includes 2 manufacturing facilities situated at Michelau Germany and Puebla Mexico. The acquired entity develops and manufactures extrusion profiles moulded parts made of thermoplastics and hybrid components made of metal and plastic catering to OEMs like Audi BMW Daimler Ford GM VW etc. along with other customers. It also has a strong vertical integration including stateoftheart tool room for injection moulding tools process engineering and inhouse material development capabilities. This acquisition further consolidates MSSLs polymer business in Europe North America.On 29 April 2015 Motherson Sumi Systems Ltd. MSSL announced that the company through its subsidiary Samvardhana Motherson Automotive Systems Group BV SMRPBV has received a significant set of orders for the supply of a range of exterior and interior systems for several future MercedesBenz vehicle generations. MSSL estimates these orders to generate sales revenues of approximately Rs 15400 crore Euro 2.2 billion approx. over its lifetime and expected to commence from calendar year 2018. To support Daimlers expansion activities MSSL will invest in 2 new plants one each in the USA and Hungary which will enable SMRP BV to be closer to Daimlers vehicle assembly plants along with capacity expansion in existing plants in Germany as well as new machines tools and product development efforts.The Board of Directors of Motherson Sumi Systems Limited at its meeting held on 10 June 2015 recommended the issue of bonus shares in the ratio of 1 one bonus share against the 2 two existing shares subject to the approval of the shareholders.On 7 September 2016 Motherson Sumi Systems Ltd MSSL informed the stock exchanges that MSSL Manufacturing Hungary Kft. a subsidiary of MSSL GmbH which is a subsidiary of Motherson Sumi Systems Limited is acquiring the Automotive Business Unit of Abraham es Tarsa Kft. Abraham and Co. Ltd located in Turkeve Hungary on a going concern basis and would also give on lease part of acquired assets to SMR Hungary. With this transaction which is expected to be completed in October 2016 MSSL through its 100 subsidiary MSSL Manufacturing Hungary Kft. would acquire the land building and machinery of Abraham es Tarsa Kft for a purchase price consideration of EUR 10.4 million. Abraham es Tarsa is an expert for plastic processing and high quality products for car makers across Europe. SMR Hungary a subsidiary of SMRP BV 98.5 holding which is ultimately held by MSSL has for many years been the primary customer of Abraham es Tarsa Kft.The integration of this business would allow to generate a number of operational synergies with SMR. This acquisition will increase the in house capability of SMR Hungary and therefore will support SMRs position as technology and market leader for automotive mirrors in Hungary and Europe. The acquired unit will be further expanded to achieve group synergies through supplies to SMR and to the new facilities being set up by SMP in Europe to meet the demand for new orders from customers.On 12 September 2016 Motherson Sumi Systems Limited MSSL announced allotment of 1.77 crore equity shares to Sumitomo Wiring Systems Limited Japan one of the promoters of the company at issue price of Rs 317 per share aggregating to Rs 563.07 crore on preferential basis. On 16 September 2016 Motherson Sumi Systems Limited MSSL announced successful completion of raising funds amounting to Rs 1993.44 crore by way of qualified institutional placement QIP issue. The QIP issue was priced at Rs 317 per share. On 27 March 2017 Motherson Sumi Systems Limited MSSL announced the deal closure with acquisition of 93.75 stake in Finland based global auto component major PKC Group Plc a move that will help it expand its footprint significantly in American and European commercial vehicle market segment. MSSL will acquire the remaining stake in PKC Group Plc through subsequent offer/squeeze out process. The total consideration payable for the acquisition is approximately Euro 571 million. As announced earlier on 19 January 2017 MSSL and PKC entered into a combination agreement pursuant to which MSSL launched a voluntary recommended public tender offer for the acquisition of all the issued and outstanding share capital and voting rights of PKC Group Plc PKC. The tender offer was launched on 6 February 2017. PKC designs manufactures and integrates tailored electrical distribution systems and related architecture components vehicle electronics wires and cables especially for trucks and buses light and recreational vehicles construction equipment and agricultural and forestry equipment. In addition PKC designs and manufactures electrical cabinets power packs and electrical distribution systems for leading rolling stock manufacturers. With the operational expertise of MSSL and technical knowhow of PKC the company will add more value to its customers and suppliers. MSSLs success in managing its wiring harness business with a focus on training its people managing multiple plants with high degree of vertical integration from design to modules will help unlock the full potential of PKC. The Board of Directors of Motherson Sumi Systems Limited MSSL at its meeting held on 19 May 2017 recommended the issue of bonus shares in the ratio of 1 one bonus share against 2 two existing shares subject to the approval of the shareholders.On 9 January 2018 Motherson Sumi Systems through its subsidiary Samvardhana Motherson Automotive Systems Group B.V. SMRP BV announced the formation of a Joint Venture JV with Ossia Inc. innovator of the revolutionary Cota Real Wireless Power technology. Motherson Innovations Company Limited MI a subsidiary of Samvardhana Motherson Automotive Systems Group B.V. SMRPBV will hold majority share in the JV and will aim at bringing Ossias Cota power system into the interiors of some of the worlds most popular vehicles. The newly formed entity will be based in the U.S.A supported by Samvardhana Motherson Groups global organisation.On 2 April 2018 Motherson Sumi Systems through its step down subsidiary Samvardhana Motherson Automotive Systems Group B.V. SMRP BV announced the proposed acquisition of Reydel Automotive Group Reydel a privately held portfolio company of Cerberus Capital Management L.P. Cerberus that manufactures interior components and modules for global automotive customers. The purchase price for the transaction is USD 201 million. This would be the 21st acquisition from the Samvardhana Motherson Group and is intended to further bolster Mothersons offerings in the automotive Interiors space. Reydels Interiors Product Portfolio includes Instrument Panels Door Panels Console Modules Decorative Parts and Cockpit Modules. Reydels global presence spans 20 plants and 16 countries and is supported by a workforce of approximately 5650 associates. The acquisition would enable both companies to capitalise on new opportunities in their existing and new geographies as well as within each others customer portfolios. Reydels revenue for the year ended 31 December 2017 was USD 1048 million and EBITDA was USD 68 million provisional and in accordance with US GAAP. The consideration is expected to be financed using existing cash and banking limits at SMRPBV.During the financial year 201819the company has allotted 1052644746 equity shares of face value of Re 1 each on account of the issue of Bonus Shares on 01 November 2018 in the ratio of one equity share against two equity shares held.The Companys step down subsidiary Samvardhana Motherson Automotive Systems Group B.V.had completed acquisition of Reydel Automotive Group Reydel on 02 August 2018. Thereafter the name of Reydel has been changed to Samvardhana Motherson Reydel Companies SMRC. SMRC is in the business of manufacturing interior components and modules for global automotive customers.Motherson Rolling Stock Systems GB Limited UK MRSS a wholly owned subsidiary of Motherson Sumi Systems Ltd. through PKC Group Ltd. has signed a definitive agreement on 28 February 2019 with Bombardier Transportation Rolling Stock UK Ltd. Bombardier to acquire Bombardiers assets in connection with the production and installation of electrical components and systems for applications in the rail industry comprising among others the manufacturing of wiring harnesses panel and cabinet build and electromechanical assemblies in Derby UK. The transaction includes transfer of assets employee and inventories on debt free and cash free basis and is valued at GBP 10.87 million approx. The transaction has been completed in the month of April 2019. The board of directors given inprinciple approval in its meeting dated 30 January 2020 for the reorganization of business within the group which will inter alia demerge domestic wiring harness business of the Company into a newly formed legal entity with mirror shareholding which shall be listed and consolidate shareholding in Samvardhana Motherson Automotive Systems Group B.V. SMRP BV in MSSL through a process of merger to bring 49 stake held by Samvardhana Motherson International Limited SAMIL in SMRP BV into MSSLThe Companys operations and standalone financial results for the year ended 31 March 2021 have been impacted partially by the outbreak of COVID19 pandemic and the consequent lockdown announced by central and state governments due to which the operations were suspended for a large part of the quarter ended 30 June 2020 and resumed gradually with prescribed regulations and precautions.The Board of Directors in its meeting dated 02 July 2020 approved a group reorganization plan with the objective of creating value for the shareholders of the Company MSSL. The reorganization plan approved by the respective Boards of the Company and Samvardhana Motherson International Limited SAMIL among other things entails demerger of Domestic Wiring Harness DWH business from MSSL into a new company Motherson Sumi Wiring India Limited MSWIL and subsequent merger of SAMIL into MSSL to consolidate 100 shareholding in Samvardhana Motherson Automotive Systems Group BV SMRP BV as well as to bring all auto component and allied businesses in SAMIL under MSSL. The transaction is to be effected pursuant to a Composite Scheme of Amalgamation and Arrangement Scheme and is likely to be completed during FY202122. Subsequent to the year the Scheme has been approved by the shareholders and has now been submitted to NCLT for its approval.On 18 January 2021 the Company through its subsidiary SMR Automotive Mirrors Stuttgart GmbH signed a share purchase agreement for the acquisition of 75 stake in Plast Met Plastik Metal San. ImalatveTic.A.S.PMBursa and Plast Met Kalip San.veTic.A.S.PMIstanbul together known as Plast Met group Turkey for a total purchase consideration of EUR 16.9 million subject to final adjustments. The transaction has been completed on 29 April 2021.The Company incurred CAPEX of Rs 1904 million at standalone level which includes the addition of wire manufacturing capacity at Pithampur Madhya Pradesh expansion of polymer facilities by addition of injection moulding machines Other balancing equipment at Becharaji and Chennai expansion of capacity for rubber components both at Noida Chennai the addition of equipment for wiring harness at Pithampur Chennai NCR for catering to domestic customers as well as the addition of new machines at Kandla for exports.The Honble National Company Law Tribunal Mumbai Bench Honble NCLT vide its order dated 22 December 2021 has approved the Composite Scheme of Amalgamation and Arrangement the Scheme between the Company Motherson Sumi Wiring India Limited MSWIL Samvardhana Motherson International Limited SAMIL and their respective shareholders. With the objective of unlocking/ creating value for the shareholders the Scheme among other things entails demerger of Domestic Wiring Harness DWH business from the Company into a new company viz. MSWIL and subsequent merger of SAMIL into the Company to consolidate 100 shareholding in Samvardhana Motherson Automotive Systems Group BV SMRP BV as well to bring all auto component and allied businesses in SAMIL under the Company.Accordingly as per the Scheme 3157934237 equity shares having face value of Re 1/ each have been allotted by MSWIL in the ratio of 1 equity share of MSWIL of face value Re 1/ each for every 1 equity share of MSSL of face value Re 1/ each to the shareholders of MSSL as on 19 January 2022 being the record date fixed by the Company. Similarly in accordance with the Scheme 1359680007 net equity shares having face value of Re 1/ each have been allotted by the Company in the ratio of 51 equity shares of the Company of face value Re 1/ each for every 10 equity shares of SAMIL of face value Rs 10/ each to the shareholders of SAMIL as on 28 January 2022 being the record date fixed in terms of the Scheme.
OrganisationSamvardhana Motherson International Ltd
HeadquartersMumbai
IndustryAuto Ancillaries