Auto ancillary company Motherson Sumi Systems (MSSL) has bagged biggest ever orders from the German automobile manufacturer for the supply of exterior and interior systems for Mercedes-Benz.
"MSSL through its subsidiary Samvardhana Motherson Automotive Systems Group BV (SMRPBV) has received a significant set of orders from Daimler for the supply of a range of exterior and interior systems for several future Mercedes-Benz vehicle generations," said the global automotive supplier.
MSSL estimated these orders to generate sales revenues of approximately Rs 15400 crore (Euro 2.2 billion approximately) over its lifetime and expected to commence from calendar year 2018.
To support Daimler’s expansion activities, MSSL will invest in 2 new plants, one each in the USA and Hungary. This will enable SMRP BV to be closer to Daimler’s vehicle assembly plants, along with capacity expansion in existing plants in Germany as well as new machines, tools and product development efforts.
The company said all of the mentioned activities are concerning operations of SMRPBV‘s division SMP (Samvardhana Motherson Peguform), which was acquired in 2011. SMP is a major supplier to car manufacturers in Europe, especially the German car makers.
The company did not disclose any value of orders. "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," Vivek Chaand Sehgal, Chairman (MSSL) said.
At 09:24 hours IST, the scrip of Motherson Sumi Systems was quoting at Rs 484.75, up Rs 20.75, or 4.47 percent on the BSE after rising as much as 7.5 percent in early trade.
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