Motherson rides high in a Merc!
Motherson Sumi (MSSL) announced today morning that it had received the biggest ever order. It announced today morning that, through its subsidiary Samvardhana Motherson Automotive Systems Group BV (SMRPBV) has received a significant set of orders for the supply of a range of exterior and interior systems for several future Mercedes-Benz vehicle generations. MSSL estimates these orders to generate sales revenues of approximately Rs 15400 crores (Euro 2.2 billion approx.) over its lifetime and expected to commence from calendar year 2018.
To support Daimler’s expansion activities, MSSL will invest in 2 new plants, one each in the USA and Hungary which will enable SMRP BV to be closer to Daimler’s vehicle assembly plants, along with capacity expansion in existing plants in Germany as well as new machines, tools and product development efforts.
All of the mentioned activities are concerning operations of SMRPBV‘s division SMP (Samvardhana Motherson Peguform), which was acquired in 2011. SMP is a technology and market leader for bumpers, door panels and cockpits with strong footprint in Europe, Mexico, Brasil and China. It is a major supplier to car manufacturers in Europe, especially the German car makers. SMP’s new plant in Hungary will be located close to Daimler’s operations in Kecskemet. With the establishment of the new plant in the region around Tuscaloosa, close to Daimler’s assembly plant, SMP enters an important strategic growth market - USA which had been a ‘white spot’ for SMP so far.
The company is expected to announce its Q4 and FY15 results on 12th May.
The stock price is up 3.5% a Rs.479 levels, with an intra day high of Rs.499.