Motherson Sumi Systems Ltd, one of the country’s biggest automotive component manufacturers, on Monday announced acquisition of 75% stake in two Turkish automotive parts manufacturing companies, Plast Met Plastik Metal Sanayi lmalat ve Ticaret Anonim $irketi.(PM-Bursa) and Plast Met Kahp Sanayi lmalat ve Ticaret Anonim $irketi (PM-Istanbul).
Together these two entities are also known as the Plas Met Group, founded by Turkish entrepreneur Erol Senol, who will own the residual 25% stake in the companies. Motherson will invest in these companies through its subsidiary Samvardhana Motherson Automotive Systems Group BV.
Through the recent acquisition, the Noida-based company will gain a toehold in Turkey’s domestic market and will also be able to serve its European customers better as Plas Met is engaged in manufacturing of injection moulded parts, sub-assemblies for mirrors, trim modules and lighting systems. The group also has capabilities of manufacturing high-end injection moulding tools that cater to customers in Turkey and other global markets.
“This acquisition will mark SMR and Motherson group’s entry into Turkey. Turkey is a strategic growth market for the Motherson group, with annual passenger vehicle production of 1.4mn units and long-term growth potential. Entry into Turkey is consistent with the geographic expansion opportunities highlighted in the recent Vision 2025 presentation,” the company said.
The transaction will also enhance Motherson group’s tooling capabilities and complement its existing manufacturing footprint. Turkey is likely to play a key role as a competitive sourcing hub and as a platform to serve the group’s customers in the European region, the company noted.
“This acquisition marks another step towards the growth and diversification of Vision Systems vertical and the group overall. This is the 25th acquisition by Motherson Group and we will continue to work towards serving our customers with more products and service offerings globally. Turkey will be the 42nd country in Motherson’s global operations, which is in line with our philosophy of 3CX10,” said Vivek Chand Sehgal, chairman, Motherson Sumi.
“Plast Met and Motherson are aligned in their business objectives and philosophy. Together with the global know-how of Motherson Group and local expertise of Plast Met group, I am confident that the alliance will enhance value to our customers,” Erol Senol said.
