Motherson Sumi eyes acquisitions, ‘in talks with potential takeover cos’

Mumbai, Aug 29 (SocialNews.XYZ) Auto components maker Motherson Sumi Systems is looking for more acquisitions and is in talks with many potential takeover companies.

A letter to the shareholders by Motherson Sumi Chairman Vivek Chaand Sehgal in the Annual Report of the company also noted that acquisitions must create value for the customers and must allow the company to achieve revenue and ROCE (return on capital employed) targets simultaneously.

"We acquired a majority stake in Plast Met Group, headquartered in Turkey. This also marked an entry into a new country for us. As always, we are in talks with many potential takeover companies. We are in a strong position to make acquisitions, even in a volatile environment," he said.

"We will not make acquisitions only to achieve our top-line goals," the Chairman added.

He said that Motherson Sumi's Vision 2025 target -- a topline of $36 billion with 40 per cent ROCE -- is ambitious.

Achieving it will require closer teamwork, intense sharing and a spirit of growing together, he said, adding that the company is moving into new geographies, entering new markets, forming new partnerships and taking on new clients, and Motherson Sumi is stepping up to meet these new challenges together.

He said that despite the pandemic, the company's organic growth is robust, as it recorded the highest-ever quarterly revenues of Rs 17,923 crore in Q3.

"Our order book across the world is strong and growing. Our operating cash flows are healthy and as on March 31, 2021, our net debt is lowest in the last 17 quarters," he told the shareholders.

Source: IANS