Motherson Sumi has unveiled its 5-year vision of achieving a revenue of USD 18 billion and pre-tax RoCE of 40 percent by 2020.
Throwing more light on the outlook for the business going forward, Vivek Chaand Sehgal, Chairman, Motherson Sumi Group said the company supplies to six of the top 10 electric vehicle manufacturers.
He said they are very much in sync with the requirements of electric vehicles but are agnostic to any type of engines as of now.
He said every segment of the company is focusing on improving products to make sure that we are not found wanting by the car makers for the kind of technologies they may need.
However, they are not present in the Chinese electric vehicle market, he said.
Globally, only 70,000 EV cars have been produced so far, he said, adding that while the world consumes 92 million non-electric cars.
According to him, by 2020 when new environment laws, new emission laws etc come through, the cars will have to be lighter but also stronger, therefore all our segments are focuses on making parts better environmentally.
Talking about their five-year plan and giving the updates mid-way through it, he said they expect to reach their targets six months to a year earlier.
Chaand also specified that with individual companies doing very well they expect to cross 40 percent return on capital employed (RoEC) by FY19-20.
With regards to acquisitions, he said they have a strong pipeline and are looking at many opportunities.
The Motherson story is all about increasing content per car and not about focusing on any particular geographies or a particular market, said Chaand. However, he added that there is a strong pick up in the commercial vehicle business in US and there is lot of buoyancy seen in Europe.
The only weak market currently is Brazil but expect that to pick up in next two years, he said.
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