Samvardhana Motherson International (SAMIL) is investing and setting up 10 new facilities in India to support customers’ growth in auto and non-auto business. Amidst an uncertain business environment, (SAMIL) posted revenue of Rs 23,474 crore with 28 per cent growth on a y-o-y basis with a healthy booked business of over USD 77 billion. Profit stands at Rs 451 crore, excluding one-time provisions for footprint rationalisation in the uncertain business environment, as per the financial results for the second quarter of the fiscal year 2023-24 ended on 30 September 2023.
The specialized automotive component manufacturer for OEMs, known formerly as Motherson Sumi Systems, saw its automotive booked business grow to over USD 77 billion (from USD 69.1 billion on 23 March) with a share of 22 per cent coming from EVs. Vivek Chaand Sehgal, Chairman, Motherson has adopted a cautious yet confident approach in its ability to adapt and navigate through these challenges. “The integration of acquired entities is at its initial phase,” informed Sehgal, moving in the right direction towards unlocking its full value in the coming times.
The challenges came from lower production on account of annual plant shutdowns at OEMs due to the summer holiday in Europe, with the impact compounded by local disruptions in Europe and America. Motherson also closed four acquisitions (SAS, Saddles, Rollon, and Ichikoh) during Q2FY24. However, with a diverse global customer base of nearly all leading automobile manufacturers globally, the company with more than 350 facilities across 41 countries in five continents, has diversified to non-automotive businesses, including technology and industrial solutions, health and medical, aerospace, and logistics. As the largest auto ancillary in India, SAMIL is currently ranked among the top 25 automotive suppliers worldwide.