Motherson Sumi Systems Limited (MSSL) in a joint venture with Samvardhana Motherson Finance Limited (SMFL) announced the completion of acquisition of Visiocorp, one of the world’s largest manufacturers of automotive exterior mirrors, with a turnover of approximately Euro 660 million in 2008. The newly formed parent entity for Visiocorp is to be known as Samvardhana Motherson Visiocorp Solution Limited (SMVSL).
Motherson Sumi Systems Limited, the flagship company of Sumi Motherson Group is India’s leading full system solutions provider for the automotive and non-automotive industries with over 65% market share of passenger car wiring harnesses and also a leading supplier of rearview mirrors for passenger cars. The acquisition will uniquely position the group as one of the world’s largest manufacturers of automotive exterior mirrors, taking the group turnover to USD 1.6 billion.
Commenting on the acquisition, Mr. Vivek Chaand Sehgal, Chairman, Sumi Motherson Group said, “MSSL had a highly successful joint venture with Visiocorp in India for the past thirteen years. This acquisition will lead to significant leveraging of business synergies as the existing business of Sumi Motherson Group greatly supplements Visiocorp’s needs for products and services, particularly in design engineering services, IT, injection molded parts and assemblies, molds and wiring harnesses”.
The total cost of acquisition is Rs 176 crore (Cash consideration of Euro 25 million along with allotment of 5% consideration share of face value Euro 1.5 million). The acquisition will help Motherson Sumi group to offer entire range of automotive parts which would include rear view mirrors as well to a global customer base.
“The acquisition further elevates the group’s positioning as a major tier-I supplier to the automotive industry with a combined global footprints spanning 20 countries and having 80 manufacturing units. It will also provide access to the diverse global customer list of Visiocorp like BMW, General Motors, Ford, Hyundai, PSA Peugeot Citroen, Renault/Nissan, Volkswagen, etc. to name a few”, said, Mr. Vaaman Sehgal, CEO, Samvardhana Motherson Visiocorp Solution Limited.
Samvardhana Motherson Visiocorp Solution Limited (SMVSL) is 95% owned by Samvardhana Motherson Global Holdings Limited (SMGHL), a JV between MSSL and Samvardhana Motherson Finance Limited (SMFL) in the ratio of 51:49. SMVSL will have no liability towards the debts of Visiocorp Plc.
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About the Sumi Motherson Group
The Sumi Motherson Group is a focused, dynamic and progressive group providing customers with value added products, services and innovative solutions. The Group has a diversified product range to serve multiple industries, with automotive industry being the main industry served .The business portfolio comprises electrical distribution systems (wiring harnesses), polymer processing, injection molding tools, elastomer processing, modules and systems, machined metal products, cutting tools, IT services, design engineering, CAE services, sunroofs, vehicle air conditioning systems, lighting systems, cabins for off-highway vehicles, cutting tools and thin film coating metals. It has invested in technologies that provide manufacturing support, including compressors, paint coating equipment, auxiliary equipment for injection molding machines, sales, installation and servicing of industrial robots and automotive manufacturing engineering services.
About Visiocorp Group
Visiocorp Group supplies exterior mirrors, interior mirrors and blind spot detection systems for all passenger vehicle segments and nearly every carmaker in North America, Europe, Asia and Australia. Innovation, the use of the latest technologies and a worldwide network of experts and production facilities enable Visiocorp to be a leading supplier of exterior mirrors. As a technology leader, Visiocorp Group introduced the world's first exterior mirrors with integral turn signal lights, the first combined power telescopic and power folding mirror for light trucks and the only camera-based blind spot detection system on the market featuring leading edge image processing technology. Visiocorp Group's 16 manufacturing plants are specialized in polymer processing, the manufacturing of electrical components, automated painting and the assembly of complete systems.
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