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Motherson Sumi Systems Ltd along with Samvardhana Motherson Finance Ltd (SMFL) today announced the completion of the acquisition of the automotive exterior mirror maker Visiocorp for Rs 176 crore.
Post acquisition, the newly formed parent entity will be known as Samvardhana Motherson Visiocorp Solution Ltd (SMVSL).
"We will invest USD 80 million in Visiocorp in next one year for restructuring the company and working capital. As part of the restructure, we will close down one German plant," SMFL Director Laksh Vaaman Sehgal told reporters here.
Of the total investment, USD 30 million would come from internal accruals of SMVSL for restructuring, while USD 50 million would be raised as debt for working capital and tooling machineries, he added.
Visiocorp has 16 manufacturing units with over 300 patent registered under its belt.
SMVSL is 95 per cent owned by Samvardhana Motherson Global Holdings Ltd (SMGHL), a 51:49 JV between Motherson Sumi Systems Ltd (MSSL) and SMFL. The remaining 5 per cent stake would be allotted to the erstwhile promoters of Visiocorp.
Aiming for a double-digit growth in next financial year, the group is exploring possibilities of more acquisitions in the overseas markets this year. "The dip in the automobile market is for 8-10 months only, it can't be for years. We are looking for opportunities to acquire more companies and Europe is certainly a target," Sumi Motherson Group Chairman Vivek Chaand Sehgal said.
Declining to give details, he said atleast one more acquisition is expected this year.
On its foray into the aviation sector, Sehgal said: "We are talking to some big players for wiring harnesses and manufacturing of components. But it is yet to be finalised." Sumi Motherson Group, with over 60 facilities across 13 countries, at present controls about 45 per cent in the domestic auto component market and is targeting 60 per cent market share in the next two years, he added.
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