Sensing the growth potential of the domestic auto sector, which is set to clock a growth of more than 13-14% in the current fiscal, auto component major Motherson Sumi Systems Ltd (MSSL) has earmarked a capital expenditure of Rs 550 crore for 2010-11. This is an increase of around 25% over the previous year when the company invested Rs 400 crore.
?With the domestic auto companies growing rapidly, the future looks very good. In the overall capex plan, investments in India would be around Rs 260 to Rs 300 crore,? chairman of the Samvardhana Motherson Group, Vivek Chaand Sehgal, told FE. Though he declined to quantify the growth forecast for his company in 2010-11, he said on an average, the company has been growing at more than 30% in the last few years, and the trend might continue in coming few years as well.
With presence across the globe, Sehgal said that the company?s overseas operations would fructify in two-three years. At present, overseas operations contribute an overwhelming 70% to the company?s revenues. He said that it would go up to 85% by 2012-13. ?India?s share in the revenues would be around 15% in the next three years or so,? he said. In March 2009, the company announced acquisition of a leading automotive mirror manufacturer, Visiocorp, having operations across North America, Europe, Asia and Latin America. The company had invested around Rs 176 crore for the acquisition.