Motherson Sumi Systems’ restructuring exercise, which is expected to get complete by August this year, will allow the Group to pursue acquisition opportunities more aggressively. In a recent interaction with investors, the company reaffirmed its focus on generating revenue over US$36 billion (Rs 266,436 crore) with return on capital employed (ROCE) of about 40 percent by year 2025.
Some of the catalysts spelt out by the company’s leadership for reaching its goals includes, increasing the business growth in current product lines, introducing new technologies in current products and processes, new solutions in current segments and diversification into new industries. While the first three catalysts are expected to being revenues of US $27 billion (Rs 199,827 crore), the rest constituting about US $9 billion (Rs 66,609 crore) may come from the fourth catalyst.
Commenting on the development, Vivek Chaand Sehgal, Chairman, Motherson Sumi said, “Our global teams have put in tremendous efforts in challenging conditions to ensure uninterrupted supplies to our customers. With the rollout of Covid-19 vaccine in different parts of the world, we are optimistic that the demand and positive sentiments will improve in the upcoming quarters.”
Collaboration with UBQ Materials
Additionally, Motherson Group recently announced its collaboration with Israeli cleantech company, UBQ Materials for developing carbon-negative thermoplastic into auto parts. It is manufactured from 100 percent unsorted household waste, containing food leftovers, mixed plastics, paper, cardboard, packaging materials and diapers amongst others.