Industry Profile: Indian automobile industry is one of the largest and most competitive in the world. In FY 15-16 production total was 23.96 million vehicles. The sector accounts for 7.1 percent of the GDP of India, out of which 81% is the Two-wheeler market. Indian automotive aftermarket is estimated to grow at around 10-15 percent to reach US$ 16.5 billion by 2021 from around US$ 7 billion in 2016. It has the potential to generate up to US$ 300 billion in annual revenue by 2026, creates 65 million additional jobs, and contribute over 12 percent to India’s Gross Domestic Product. Maruti in Car and Hero Moto Corp are leaders in Two-wheeler markets. Passenger Vehicle holding 13% market. Maruti Suzuki expects the Indian passenger car market to reach four million units by 2020, up from 1.97 million units in 2014-15. Mr. Young Key Koo, Managing Director, Hyundai Motor India Ltd, has stated that India is an important market for the company in terms of volumes and as a hub of small products for exports to 92 countries. Like many companies trying to increase revenue, the rural market is significant for further growth. India is also one of the leading exporters of automobiles and has strong export growth expectations for the near future. In April-March 2016, overall automobile exports grew by 1.91 percent. PV, Commercial Vehicles (CV), and Two Wheelers (2W) registered a growth of 5.24 percent, 16.97 percent, and 0.97 percent, respectively, in April-March 2016 over April-March 2015. The industry has attracted Foreign Direct Investment (FDI) worth US$ 15.79 billion from April 2000 to September 2016, according to data released by the Department of Industrial Policy and Promotion (DIPP). Several automobile manufacturers, from global majors such as Audi to Indian companies such as Maruti Suzuki and Mahindra & Mahindra, are exploring the possibilities of introducing driverless self-driven cars to India.
Company profile: Motherson Sumi Systems Limited (MSSL), the flagship company of the Samvardhana Motherson Group, was established in 1986 in joint partnership with Sumitomo Wiring Systems, Japan. Including its subsidiaries and JVs, Motherson Sumi Systems is one of the leading manufacturers of automotive wiring harnesses and mirrors for passenger cars. It is also a leading supplier of plastic components and modules to the automotive industry.
Its broad business portfolio includes wiring harnesses, mirrors for passenger cars, injection-molded products, modules including dashboards, door trims, bumpers, blow-molded components, liquid silicone rubber molded components, injection molding tools, extruded rubber products, precision machined metal components, and waste recycling systems.
Shareholding Pattern: BSE Data
Financials and Ratio: [table id=106 /]
Future Prospects: Being an Automobile ancillary company The company is a leading auto ancillary company. With tie-ups with Audi and other big-brand companies, the growth will be good in the future. Margins were muted, but that was due to the recent launching of big plants. Everything else is looking good.
