VC Sehgal, Chairman, Motherson Sumi Systems Limited

NEW DELHI: Auto component giant Motherson Sumi Systems Limited (MSSL) expects demand to return to normal from the 10th of this year from month to month following the collapse in demand due to a nationwide blockade.

VC Sehgal, Chairman, Motherson Sumi Systems Limited (MSSL), said that while the recovery in demand after the blockade in India has been weaker than in China, South Korea and Japan, automakers across segments have resumed their operations and are registering YoY growth in the local Market. /p “In Europe, the market is stronger,-65-70% plus. The same is true in the US. In that sense, India is a bit weak. In October, things will start getting back to normal, but everyone is eager to get back to normal,” Sehgal said.””

The Motherson Group has 270 one manufacturing plants in 41 countries. Sehgal said all but two units are operational. About 65-70% of them. About 65-70% of them are operating at 75% capacity.

Sehgal said the Motherson Group’s manufacturing strategy helped the countries in which it operates to efficiently resume operations at a time when the outbreak was disrupting supply chains and forcing governments around the world to adopt protectionist policies.

For his Indian operations, Motherson “rarely buys raw materials directly from China. The company is planning to localize further to meet the requirements of Prime Minister Narendra Modi’s Atmanirbhar Bharat ‘vision.”

“One of the biggest lessons from Covid-19 is that you have to be both global and localized. As a strategic measure, Motherson does not like to import or export. As a result, Sehgal said, all the factories in China supply only to Chinese companies, while India supplies to Indian companies.

The group had sales of $11.291 billion last fiscal year and plans to more than triple that to $36 billion over the next five years.

The Motherson Group will continue to increase its supply content per vehicle to reduce the risk of market volatility in its auto parts business, which is expected to account for three-quarters of its sales period. Sehgal The group also said it will leverage and build on existing capabilities to diversify into medical devices, aerospace, logistics and software services.

“As a result, we have done a lot of preliminary work over the last five years and have finally selected four base businesses. We believe these businesses can build on Motherson’s existing capabilities without investing too much and can generate additional business. ‘We expect to have 20 businesses Home. 25% of our sales over the next five years That’s the future,’ he said.

Sehgal said the outbreak will provide an opportunity to expand business through the inorganic channel. “We believe there will be a lot of opportunities every year for the next 2 to 2.5 as automakers make more acquisition requests.”

Sehgal said the company’s acquisition and diversification strategy requires the addition of more subsidiaries, but that the group’s recent reorganization simplified the company’s structure to facilitate growth across product portfolios and ancillary businesses in the automotive components space.

In July this year, the boards of directors of MSSL and in July this year, Samvardhana Motherson International Limited (SAMIL) approved a restructuring plan to divide MSSL’s Domestic Wiring Harness (DWH) business into new companies and merge it with a wholly owned subsidiary of MSSL. SAMIL and MSSL merge Samvardhanana Motherson Automotive Systems Group BV (SMRP BV) 100% of SAMIL’s shareholding and all automotive components and allied businesses are merged into MSSL.