Sunday, August 9, 2015

Motherson Sumi Systems Limited - Annual Report Analysis - Part 1

Motherson Sumi is automobile component makers. The company along with its subsidiaries and associates supplies auto parts to original equipment manufacturer (OEM) across 25 countries. Motherson Sumi Systems Ltd (MSSL) was incorporated in 1986 as joint venture between Samvardhana Motherson international limited and Japanese partner Sumitomo Wiring Systems.

During 1989 to 1998, Company undertook backward integration into injection molding, injection molding tools, rubber injection molding, thereby expanded its product portfolio.


MSSL products (Source: Investor Presentation)

Wiring Harness Division
  • It provides wires, connectors, terminals, junction boxes and other components for wiring harness for passenger, commercial and off-roads vehicles. 
  • It also provides wiring harness for industrial applications, material handling & earthmoving vehicles, agriculture and farm equipments
  • For non-automotive sector, wiring harness products are used in elevator, medical systems, copiers, etc. 
  • It has 46 wiring harness manufacturing facilities
Rearview Mirror Division
  • It develops, produces and supplies interior and exterior rear view mirrors. 
  • It has wide range of exterior rear view mirror from basic manually adjusted mirror to high value  automatic mirror with inbuilt LED turn lights and camera. 
  • The company has 22% market share of global exterior rear view vision systems and 53% market share in India. 
  • Its customer in this segments includes AAudi, BMW, Chrysler, Ford, Kia, Landrover, Jaguar, Volkswagen, Renault Nissan, GM and others. 
  • Products are supplied to its customers through its 22 manufacturing plants across world.  
  • This segment represents 26% of MSSL's revenue in Mar 2015.
Interior & Exterior Polymer Modules Division
  • This segment includes vehicle interior plastic components and modules -  cockpit modules, door trim modules, centre consoles and pillar trims, and exterior component - bumper modules and front end modules. 
  • It has complete in-house post processing facilities. 
  • Its 55 polymer manufacturing facilities makes it largest manufacturers of IP modules, door trims and bumpers in Europe and of plastic components and modules in India. 
  • Its customers in this segment includes Audi, Volkswagen, BMW, Porsche and others. 
  • The polymer business contributes 49% of MSSL revenue in Mar 2015.
Elastomer Processing Division
  • It has 2 elastomer processing facilities that manufactures extruded rubber components, rubber mixing and compounding  for a spectrum of industries.
Precision Metal Machining
  • It specializes in machining of high precision and critical applications metal components.

The business strategy of MSSL is to increase content per car and thereby provide value addition to OEMs and generate profitability for the company.