The ambition of the Assembly is part of the Motherson Group to increase revenue to $ 108 billion by the end of this decade of approximately $ 25.7 billion in FY25, according to at least three brokers that joined briefing last Friday.
The Vivek Sehgal Group’s experiment led by the parent group on the construction of cars for the manufacturers of original devices refers to the third monthly education in the Indian automotive sector after Sona Comstar and Bharat Forge set out for robotics. Movements come at a time when the sector faces several winds, including slowing in the Western market.
Constant progress
“Over the past five decades, Materison has proceeded from producing components for products, systems and integrated assemblies. Another logical step is the full assembly of the vehicle by 2030, allowing access to the entire car supply chain,” Nuvama analysts said.
Motherson reveals its long -term investors through five -year plans. In 2020, by 2025, it focused on achieving revenues of $ 36 billion. Last year it ended $ 25.7 billion. Although the company missed its goal, analysts noted that it was necessary to consider in connection with global challenges.
“Although it did not achieve its goal, it is important to realize that the company has significantly exceeded the final market in the middle of an exceptionally demanding five -year period from 2020 to 2025,” wrote Motilal Oswal in September 8.
Development
The company recorded its development to the full manufacturer of cars as a logical step, starting with the supplier of basic components in 1983. It was painted on the production of fully produced products and systems such as rear vision systems and internal panels.
The presentation of the company for investors noted that it focuses higher content on the vehicle that runs on roads in the country and abroad. Analysts expect that such a target can not only lead to full assembly of cars, but also to increase profitability.
The Samvardhana Motherson stock price decreased by 2.7% this year compared to 16% of Nifty Auto profits.
Motherson focuses on 40% return on capital employed by 2030.
“The company plans to achieve this by improving operational efficiency, including the expansion of assets and flexible CAPEX, higher content to the vehicle and the growing contribution of non -automotive enterprises such as air space and consumer,” wrote JM Financial analysts in a note of 7 September.
Experts said that the key reason for the company’s ability to focus on the full assembly of cars is the transition to electric vehicles that collects pace around the world.
“Moving to electrical mobility transforms the value chain and reduce input barriers and creates opening for new participants such as Motherson to think about components and towards the assembly of cars,” said Nikhil Dhaka, vice -chairman of Primus Partners, consulting.
Rare movement
Very few companies around the world have tried to make cars and installation of vehicles. These include Austrian Magna Steyr and Finland’s Valmet Automotive.
Although Motherson did not state how the model will work, some traces can be taken from how Magna Steyr has evolved to make cars. The company worked as an engineering and production company with the ability to control part and technology and help manufacturers to produce cars according to the requirements of the market. The Austrian contracting manufacturer worked with companies like Jaguar Land Rover, Toyota and Mercedes-Benz.
Full assemblies can also be done on the basis of design and technology provided by customers. Since the company has already moved to the production of most components required in the car, it may seem that it quickly integrates and assembles cars. This could potentially allow companies to reduce their production costs and look to increase its products.
Motherson was founded as a trading company in 1975 by Vivek Sehgal and his late mother Swwaan Lata Sehgal. The company has moved from trading in electrical connection, with cars soon followed by automatic components when Maruti Suzki started the growth of cars in the country. In addition to Maruti Suzuki, he is now working with clients like Volkswagen, Mercedes, Audi, BMW and Maruti Suzuki.
A variety of strategies
While Motherson creates full cars, other automobile players pushed into retail cars.
Mobility Mobility Mobility Muurugappa Group, Greaves Cotton and Pinnacle Industries are companies that try hands in segments of commercial and passenger vehicles.
While it is discussed that it will become an automobile dealer from a car manufacturer, some automatic components sectors have agreed that companies must innovate and meet customers’ requirements.
Sunil Kaul, the main technology director of the Anand Group, a car manufacturer, previously said Mint: “In the long run, those who develop their own technology will be in the long run, closely cooperate with customers and understanding and meet their requirements, leaders.”
(Tagstotranslate) Samvardhana Motherson International Ltd (T) Motherson (T) Sona Comstar
