Many companies in India are struggling due to the economic slowdown around the world, mainly in European nations. However, Motherson Sumi Systems is not one of them.
Motherson Sumi Systems earlier last week acquired 80% stake in Peguform Group. The company said it will fund the deal through overseas loans and has appointed ICICI Bank as the lead arranger. But this, Vivek Chaand Sehgal, chairman of the Motherson Sumi Group says won't impact the margins.
Pankaj Mital COO of Motherson Sumi says that the company's merger with SMIEL, a subsidiary of Sumitomo Wiring Systems and a joint venture with Sehgal family, will help in localizing the Sumitomo brand.
At present, there has been no reported impact of the production of components in the auto ancillary space because of the earthquake and tsunami in Japan. Vivek Chaand Sehgal, Chairman, Motherson Sumi Group in an interview on CNBC-TV18 says most auto ancillary companies have not faced any production shortage.