Motherson Sumi board approves reorganisation plans

Vivek Chaand Sehgal, Chairman, Motherson Sumi Systems

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26 Aug, 2025 12:21

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The Board of Directors of Motherson Sumi Systems (MSSL), India's largest auto component maker, on July 2 approved a group reorganisation plan.

It said the reorganisation is aimed at realigning interests of all its stakeholders creating a simplified corporate structure for growth of businesses across product portfolios within auto components space and allied operations.

The reorganisation plan approved by the respective boards of MSSL and Samvardhana Motherson International (SAMIL) among other things, entails demerger of domestic wiring harness business from MSSL into a new company which is in the process of being incorporated as a wholly owned subsidiary of MSSL.

The reorganisation will also see subsequent merger of SAMIL into MSSL to consolidate 100 percent shareholding in Samvardhana Motherson Automotive Systems Group BV (“SMRP BV”) as well as to bring all auto component and allied businesses in SAMIL under MSSL.

The proposed reorganisation aims to simplify group structure and enable MSSL shareholders to benefit through 100 percent stake in SMRP BV.

It also proposes to create separate independent entity for the wiring harness business with a focused approach on this business

Besides it also looks to align interest of all stakeholders by bringing all auto component and allied businesses in SAMIL under listed entity and create strong platforms for growth, a statement from MSSL said.

Vivek Chaand Sehgal, Chairman, MSSL said, "We are happy to receive approval from the Board of Directors for the scheme. The simplification of group structure has been a long-standing request from our shareholders and the proposed reorganization is a step in that direction. The transaction helps create strong business platforms under the Motherson umbrella which will enhance stakeholder value for the long term."

Laksh Vaaman Sehgal, Director, MSSL said, “This transaction provides MSSL shareholders with the opportunity to participate in 100 percent value of SMRP BV and also brings all auto related businesses under listed entities, which aligns interest of all stakeholders.”

MSSL will now be taking necessary steps to give effect to the scheme including regulatory approvals as required as well as approval of shareholders of the company.