Shareholders vote in favour of Motherson Sumi Group restructuring

Motherson Sumi Systems Ltd. (MSSL) in a regulatory filing has informed the stock exchanges about the outcome of the NCLT convened shareholder meeting. The public shareholders (non-promoter) have voted in favour of the proposal with an overwhelming majority, thus paving the way for successful completion of the proposed restructuring.

Once the proposed reorganisation is completed, two growth focused listed companies will emerge.

1) Motherson Sumi Wiring India Ltd. (MSWIL) will be the largest listed automotive wiring harness player in India with a nationwide manufacturing footprint. MSWIL will benefit from the continued parentage of MSSL along with an increased focus from Sumitomo Wiring Systems, Japan (SWS) to cater to the fast-growing Indian automotive market. Also, MSWIL will bring in exciting new solutions for electric vehicle offerings from our customers.

2) Motherson Sumi Systems Ltd. (MSSL) combined with the business of Samvardhana Motherson International Ltd (SAMIL) creates a solid platform to achieve our stated Vision 2025. The company will now fully own its international business Samvardhana Motherson Automotive Systems Group BV (SMRPBV); which not only results in a simplification of the group structure and enhanced cash flows; but also, further diversifies MSSL’s revenue and product mix by addition of products like automotive lighting, shock absorbers, sheet metal, HVAC etc in line with our 3CX10 strategy.

Commenting on this development, Vivek Chaand Sehgal, Chairman, MSSL said “We thank our shareholders for their support and trust in the capabilities of Motherson. This is an important step for us to achieve the next phase of growth for our group. The existing automotive business along with the addition of the exciting new business verticals, makes us confident of achieving our Vision 2025 targets. We would also like to take this moment to thank the front-line workers who are serving during the current wave of Covid-19. Our deepest sympathies are with the families who have lost their near ones in this battle. For us, the health and safety of our employees remain our topmost priority. We are doing our best under the circumstances to support our employees and their families.”

SMRP BV successfully completes acquisition of majority stake in Plast Met Group

Meanwhile, Samvardhana Motherson Automotive Systems Group BV (SMRPBV), announced the successful closure of acquisition of a majority stake in Plast Met Plastik Metal San. ImalatveTic.A.S.(PM-Bursa) and Plast Met Kalip San.veTic.A.S.(PM-Istanbul) together known as Plast Met group (Turkey) through its subsidiary Samvardhana Motherson Reflectec (SMR). 

With the successful closure of this acquisition, Motherson Group now has access to significant Turkish automotive market. Plast Met is a large automotive supplier in Turkey for injection moulded parts and sub-assemblies, and also owns a state of art commercial tool room engaged in manufacture and supplying of high end injection moulding tools to customers worldwide. Building on the capabilities of Plast Met group, Motherson will be able to support its customers in the European region more efficiently.