Strong basis for growth

Based in Noida, a satellite city of Delhi, India, the Group’s flagship company is Motherson Sumi Systems, India’s largest automotive supplier. The company operates250 production plants in 41 countries across the globe; supplying car makers like Volkswagen, BMW, Ford, Mercedes and Toyota.

Samvardhana Motherson Group was founded by Mr. Vivek Chaand Sehgal in 1975. “Mr. Sehgal created the company at the age of just 18, together with his mother, therefore the name Motherson,” explains Andreas Heuser, Head of Chairman’s Office Europe and Amerircas.

“He is a visionary man who was very clear about expanding to Europe. For this reason in 2005 he set up an office in Germany, today known as the Chairman’s Office Europe and Americas.”

Since then, Samvardhana Motherson has developed into a diversified group of companies with a strong focus on the automotive sector, over 125,000 employees worldwide and global sales of 10.5 billion USD.

The company’s product portfolio comprises wiring harnesses, rearview mirrors, bumpers, cockpit assemblies, door trims, lighting systems, air intake manifolds, shock absorbers, heating, ventilation and air-conditioning systems and many other automotive and nonautomotive products. Its technological competences include polymer and elastomer processing, toolmaking, prototyping, metalworking, engineering and design, injection moulding and paint coating.

A milestone in the development of Samvardhana Motherson was marked by the acquisition of Visiocorp in 2009, one of the world’s largest manufacturers of rearview mirrors. “As a result of the acquisition, we gained a presence in 25 countries and became a Tier 1 supplier to global OEM producers,” says Mr. Heuser.

“The company is now known as Samvardhana Motherson Reflectec (SMR).” The next big acquisition was completed in 2011 when the Group took over Peguform, a global Tier 1 manufacturer of interior and automotive polymer products, which is known today as Samvardhana Motherson Peguform (SMP).

“In the last ten years, we have more than quadrupled our turnover,” states Mr. Heuser. “Not only thanks to a number of takeovers but primarily as a result of internal growth and constant development. The acquisitions only provide a viable impetus for our organic expansion. We are not a financial investor but a global group with a well-defined growth strategy that includes both external and internal development options.”

Despite its focus on growth, Samvardhana Motherson is not predominantly aiming at improving its market position. “We are currently the 23rd largest automotive supplier in the world,” explains Mr. Heuser. “Being number one is not important to us. You can be the global market leader and still be in an unhealthy condition. You rather need to be able to finance continued growth through stable sales.

This is why we publish new growth targets every five years. Nevertheless, the topline targets we set for ourselves may look ambitious, but we have a clear visibility. We will not make a decision just to hit a turnover target. Our returns have to create value for all involved. We are an organisation that firmly maintains – if you believe, you are half way there.”