Motherson sumi systems limited: An inorganic growth story

Abstract

Historically, Mergers & Acquisitions may have proved unsuccessful, but Motherson Sumi Systems is indeed a successful acquisition machine which has built its empire through a series of acquisitions. Barely months after acquiring Finland’s PKC group Plc for around EUR 571 Mn, Vivek Chand Sehgal is contemplating acquiring Robert Bosch LLC’s (Bosch) global starter motors and generators division (1) . Bosch’s division of global starter motors and generators has a turnover of over USD 1 billion, and is a supplier to OEMs in Europe, the US, China, India and South America (1) . Motherson may have to compete with several other bidders including global private equity firms and Chinese auto components supplier(1) . If the deal is successful, this will be the 15th acquisition for Motherson in the past 15th years (2) .