Employees of Motherson Sumi Systems Ltd, work on a car wiring assembly line inside a factory in Noida on the outskirts of New Delhi (Photo: Reuters)
Auto components major Motherson Sumi Systems Ltd (MSSL) has lined up capital expenditure of Rs 2,000 crore for the current financial year, mainly on the upcoming nine plants in five countries including India.
MSSL, a joint venture between Samvardhana Motherson Group and Japan's Sumitomo Wiring Systems, is a leading manufacturer of various auto components including wiring harnesses and rear view mirrors.
"We have earmarked Rs 2,000 crore capex for the current financial year (2017-18). The investment would mainly go into the upcoming nine manufacturing plants across the world," Motherson Sumi Systems Ltd CFO G N Gauba told PTI.
The company is coming up with three plants in India, three in Hungary, one each at South Korea, Mexico and the United States, he added.
The capex announced is in line with that of last financial year.
Currently, it operates over 180 facilities across the globe catering to various automobile OEMs including Mercedes-Benz, Audi, Toyota, Ford and Suzuki.
Besides organic growth, MSSL is also focusing on acquisitions across various geographies to scale up its operations.
It has set a target of achieving turnover of $18 billion by 2020 through global expansion. For the year ended March 31, the company posted net sales of Rs 42,765.66 crore.
In March, the company completed the acquisition of Finland's PKC Group Plc for around 571 million euro (over Rs 4,150 crore).
Since 2002, the company has made 18 acquisitions.