Motherson Sumi has received biggest ever order from Germany's Daimler, worth Rs 15,400 crore.
Auto components maker Motherson Sumi Systems Ltd (MSSL) has received biggest ever order from Germany’s Daimler, worth Rs 15,400 crore, to supply external and internal systems for Mercedes-Benz vehicles.
Samvardhana Motherson Automotive Systems Group BV (SMRP BV), a subsidiary of the company, has received a significant set of orders for the supply of a range of exterior and interior systems for several future Mercedes-Benz vehicle generations, MSSL said in a statement.
“MSSL estimates these orders to generate sales revenues of approximately Rs 15,400 crore (around 2.2 billion Euro) over its lifetime and expected to commence from calendar year 2018,” it added.
In order to support Daimler’s expansion activities, MSSL will invest in two new plants, one each in the USA and Hungary which will enable SMRP BV to be closer to Daimler’s vehicle assembly plants, it said.
Besides, the move would help capacity expansion in existing plants in Germany as well as new machines, tools and product development efforts, it added.
“While we can’t give any specific details about these orders, but we can state that the preparatory work for the establishment of the two new plants has already begun,” MSSL Chairman Vivek Chaand Sehgal said.
MSSL’s plant in Hungary will be located close to Daimler’s operations in Kecskemet, while the US facility would come up in the region around Tuscaloosa, close to Daimler’s assembly plant. It did not disclose investment details for the new plants.
Motherson Sumi Systems shares were trading at Rs 479.05 apiece, up 3.24 per cent from previous close on the BSE.