Automotive components major Motherson Sumi Systems on Friday announced two acquisitions made by the group, one marking its entry into the aerospace industry, while the other expanding its business in China.
Motherson Sumi Systems (MSSL), the listed entity, will be acquiring 55% in CIM Tools at an enterprise value of 400 crore. CIM Tools is a components vendor to the aerospace industry. This is part of the group’s five-year plan to diversify beyond the automotive industry.
The company had revenue of 130 crore in FY21 and 203 crore a year prior. Currently, it has a business potential of Rs 1,500 crore, as per an MSSL press statement.
“This acquisition is our first significant step towards growth in the aerospace business. This is in line with our diversification strategy and will help us in strengthening our non-automotive business,” Vivek Chaand Sehgal, chairman, Motherson said.
Source: Economic Times