Motherson Sumi Systems acquires Finland’s PKC Group for Rs 4364 crore

Motherson Sumi Systems Ltd (MSSL) today announced that it has acquired Finland-based global auto component major PKC Group Plc for approximately euro 571 million (Rs 4.364 crore), a move that will help the Vivek Chaand Sehgal-led group to expand its footprint significantly in American and European commercial vehicle market segment.

The announcement comes just about two months after MSSL and PKC had entered into a combination agreement for the latter’s acquisition.

Announcing the deal closure, MSSL chairman Vivek Chaand Sehgal (pictured above) said, “We are very happy to announce that we have successfully acquired 93.75 percent shareholding in the PKC Group which has a significant market presence in the American and European markets with major growth plans in China. This is in sync with our declared policy of focusing on these markets to create enhanced value for all our stakeholders including investors.”

“MSSL has always believed in both organic and inorganic growth and has seen an average annualised growth of 40 percent over the last 10 years. I see tremendous growth potential ahead and we will continue to work towards becoming a globally preferred solutions provider for the transportation industry.”

According to MSSL, it will continue to keep its focus on providing full system solutions to its customers globally. With the operational expertise of MSSL and technical know-how of PKC, it aims to add more value to its customers and suppliers. MSSL’s 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.

This is the 16th acquisition by MSSL since 2002. A focused approach to product and market expansion has helped the company reach a turnover of US$ 5.7 billion by FY15-16 and will help move forward towards the target of US$ 18 billion along with business philosophy of 3CX15, meaning exposure to any country, component or customer should not be more than 15 percent of its total turnover by FY 2020.