Motherson Eyes India Growth Through Global Acquisitions: PTI

Samvardhana Motherson International Ltd (SAMIL) plans to leverage technologies acquired through its global expansion to tap emerging opportunities in India's automotive market, as rising product standards and stricter emission regulations increase demand for advanced automotive solutions, according to a PTI report.

The strategy forms part of the company's Vision 2030 ambition to achieve USD 108 billion in topline gross revenue by 2029-30.

In an interview with PTI, Pankaj Mittal, Whole-time Director and President, and Gandharv Tongia, Group Chief Financial Officer, outlined the company's growth priorities, including transferring globally acquired technologies to India, expanding across business segments and geographies, and strengthening customer relationships.

Mittal said the company's acquisitions had given it access to technologies that could now be introduced in the Indian market. He added that improving product quality and the transition towards newer emission standards were creating opportunities for advanced automotive solutions.

"With the acquisitions we have made, we have gained access to new technologies. We are delivering solutions that meet the standards of the best in the world, and these technologies are now part of our portfolio. We can therefore bring them to India and provide solutions to the market," he said.

Motherson expects India's automotive growth momentum to continue

On the domestic growth outlook, Tongia said India's automotive industry had maintained double-digit growth since the GST relaxation, with the company expecting the broader trend to continue.

He said quarterly fluctuations could affect performance, but India's consumption-driven market was expected to support industry growth over the longer term.

Tongia also reiterated Motherson's target of achieving USD 108 billion in gross revenue by 2030, citing its order book and balance sheet as factors supporting the company's expansion plans.

Acquisitions to remain driven by customer requirements

Motherson's acquisition strategy will continue to be guided by customer requirements, with joint ventures and acquisitions considered when the group cannot independently provide the technologies or solutions sought by customers.

Mittal said most of the group's acquisitions had been customer-led, with the company looking at partnerships or acquisitions to address specific technology and business requirements.

He added that the group would continue to explore opportunities in both existing business areas and new domains, depending on customer demand.

Motherson expands business segments and geographical presence

Mittal said the company was diversifying its business portfolio by adding new segments and increasing its content per vehicle. In the automotive segment, Motherson has added customers and expanded into geographies where it did not have a presence previously.

He said the group's 3CX10 strategy remained central to its diversification plans, allowing it to offset downturns in individual business segments or markets through opportunities in other geographies and sectors.

Copper price increases to have limited impact on profitability

On rising copper prices, Tongia said Motherson's wiring harness business, which contributes around 30% of group revenue, had contractual arrangements that allow changes in input costs to be passed on to customers.

These adjustments are made at quarterly or six-monthly intervals, depending on the contractual terms. As a result, the company does not expect copper price increases to have a significant impact on profitability, he said.