Samvardhana Motherson International Ltd. (SAMIL) announced that it will undertake cost optimisation measures with an aim to improve operating efficiencies. In a regulatory filing, the company said that these measures will be implemented in a phased manner and would optimise a cost block of approximately EUR 50 million per annum once fully executed over the next three years.
“The proposed transformative measures will be implemented in a phased manner and would be targeting optimization of a cost block of approx EUR 50 Mn per annum once fully executed over the next three years. The cost block under optimization includes various elements such as salary, benefits, overheads, cost of leased / contract employees, etc.,” it said.
Motherson has completed 23 acquisitions since 2020 making substantial investments globally, it said, while adding that the company is committed to support and create value for its stakeholders.
In order to operate in an evolving and dynamic automotive production environment with increased complexity across the supply chain and regulatory uncertainties, the company via its subsidiary SMRP BV, has proactively initiated a series of transformative measures in Central & Western Europe.
The series of strategic measures would include various operational initiatives and active engagement and collaboration with the local workmen representative associations and will work on defining an optimization plan for adjusting and recalibrating the workforce in respective countries.
The auto components manufacturer said that the transformative effort aims to address the changing supply chain landscape and implement necessary changes while ensuring uninterrupted customer supplies. “The transformation will be carried out in compliance with all applicable regulatory norms,” it added.
Shares of Samvardhana Motherson were down 1.65 per cent at 9:15 am today at a trading price of Rs 113.10.