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About the Company :

“Start-up” had a different meaning in 1975. We were, literally, a mother-&-son team in a country finding its economic feet. 

Motherson was founded as a small family trading company by current chairman, Vivek Chaand Sehgal and his late mother, Shrimati Swaran Lata Sehgal. Within a few short years, the company would move from silver trading to making electrical wiring for homes.

MSSL (Motherson Sumi Systems Ltd. ) is the flagship company of Samvardhana Motherson Group (SMG), a leading global automotive component supplier. The company has a diversified automotive product portfolio, which includes automotive vision systems, wiring harnesses, polymer parts, tooling, metal machining and elastomers spanning key automotive markets around the globe. The company was promoted in 1986 in technical and financial collaboration with Sumitomo Wiring Systems (SWS) and Sojitz Corporation, Japan.

MSSL is a listed entity, with its promoter shareholding distributed between Samvardhana Motherson International Limited and the Sehgal family (~36.6% stake) and SWS, Japan (~25.1% stake).

MSSL started out as a single product (wiring harness) company, but has since expanded its product range to include polymer products, automotive mirrors and machined metal components. Besides organic growth through investments in identified geographies, the management has followed an acquisition-led growth strategy, which has helped in diversifying its operational profile over the years.

In FY20, the largest customer (Daimler AG) contributed 13.9% to the revenue. Although the Volkswagen group as a whole continues to account for the largest share of the revenue (FY20: 24%; FY19: around 30%), it is spread across several brands (including Audi, VW, Seat, Scania, MAN and Porsche), platforms and geographies. In terms of segments, standalone (wiring harness, polymer, elastomers and others), SMR (exterior mirrors), SMP (interior polymer modules) and PKC (commercial vehicle wiring harness) contributed 11%, 20%, 51% and 15%, respectively, to the FY20 revenue.

Re-organisation :

On July 02, 2020, Samvardhana Motherson Group announced that board of directors of Motherson Sumi Systems Limited (MSSL) and Samvardhana Motherson International Limited (SAMIL) have approved reorganization of business within the Samvardhana Motherson group. 

The reorganization plan entails demerger of the domestic wiring harness ('DWH') business from MSSL into a new company, with similar shareholding structure as that of MSSL. Further, the reorganization plan also entails subsequent merger of SAMIL into MSSL. As a result, MSSL will own 100% stake in Samvardhana Motherson Automotive Systems Group BV which is currently owned by MSSL (51%) and SAMIL (49%).

Besides, MSSL will also hold 33.4% stake in the demerged DWH subsequent to completion of the transaction.

Post the reorganisation, MSSL will be renamed as 'Samvardhana Motherson International Limited'(SAMIL).

The transaction is subject to receipt of regulatory and other approvals inter-alia approval from shareholders, creditors, NCLT etc. as may be applicable and is expected to be concluded in second-quarter of fiscal 2022 and be effective from April 1, 2021. DWH will also be listed post completion of the transaction.

The filing of petition for reorganisation with NCLT (National Company Law Tribunal) was completed in the month of December, 2020, and the hearing has been scheduled for mid-February, 2021.