Motherson Sumi lines up Rs2,000 crore capex for FY18
New Delhi: Auto components major Motherson Sumi Systems Ltd (MSSL) has lined up capital expenditure (capex) of Rs2,000 crore for the current fiscal, mainly on the upcoming nine plants in five countries including India.
MSSL, a joint venture between Samvardhana Motherson Group and Japan’s Sumitomo Wiring Systems, is a leading manufacturer of various auto components including wiring harnesses and rear view mirrors. “We have earmarked Rs2,000 crore capex for the current fiscal (2017-18). The investment would mainly go into the upcoming nine manufacturing plants across the world,” Motherson Sumi Systems Ltd CFO G N Gauba told PTI.
The company is coming up with three plants in India, three in Hungary, one each in South Korea, Mexico and the United States, he added.
The capex announced is in line with that of last fiscal. Currently, it operates over 180 facilities across the globe catering to various automobile OEMs including Mercedes- Benz, Audi, Toyota, Ford and Suzuki.
Besides organic growth, MSSL is also focusing on acquisitions across various geographies to scale up its operations. It has set a target of achieving turnover of $18 billion by 2020 through global expansion. For the year ended 31 March, the company posted net sales of Rs42,765.66 crore.
In March, the company completed acquisition of Finland’s PKC Group Plc for around €571 million (over Rs4,150 crore). Since 2002, the company has made 18 acquisitions. PTI