Jefferies, a global investment banking and capital markets firm, has highlighted the opportunities for auto-component companies like Motherson Group and Bharat Forge in the rapidly expanding Indian electronics manufacturing sector. The report, titled “Electronics: A New Growth Opportunity for Auto-component Makers,” notes that India’s electronics industry has grown at a CAGR of 15% from 2016-2024, with a target to quadruple to $500 billion by 2031. While India has made significant progress in chip design and electronics assembly, the value addition remains low, at 18-20%, which the government aims to increase to 35% by 2030.

The report highlights Motherson’s recent entry into the electronics manufacturing space, having formed a joint venture with Hong Kong-based BIEL Crystal to manufacture glass for consumer electronics. The company has already operationalized its first facility in the December quarter and plans to launch two more plants in 2026 and 2027. Meanwhile, Bharat Forge has partnered with AMD and Taiwan-based Compal Electronics to manufacture servers in India using its existing SMT facility.

India’s auto industry has been a success story, driven by prudent policies and rising demand. The country is now the fourth-largest auto producer globally, with a significant portion of its production being exported. The backbone of India’s auto manufacturing success lies in its component makers, who have forged technology collaborations with global suppliers, expanded production capacities, and achieved manufacturing excellence in a complex supply chain. These suppliers not only cater to domestic automakers but also export auto components worldwide, with exports reaching $21 billion in 2024.

Vivek Chaand Sehgal, the founder of the Motherson Group, has built a global business empire that has made him the richest Indian living in Australia, with a net worth of $4.7 billion (Rs 40,967 crore). Sehgal’s journey began in 1975, when he started a silver trading outfit with his mother. Today, his company, Samvardhana Motherson International Limited (SAMIL), has a market capitalization of Rs 80,199 crore and is a leading player in the auto parts industry, serving clients such as BMW, Ford, Mercedes, Toyota, and Volkswagen.

Sehgal’s company has a global presence and influence, with a presence in multiple industries. He co-founded Motherson Sumi Wiring India, a joint venture between Sumitomo Wiring System and Motherson Group, which is a leader in the Indian wiring harness industry. Motherson also has a significant presence in the aerospace sector, working with industry leaders such as Airbus Commercial Aircraft.

Sehgal’s leadership has taken the company to new heights, with Motherson being selected as a Tier 1 supplier to Airbus Commercial Aircraft. The company has also secured a multi-year contract to produce and deliver aerospace components and assemblies directly to Airbus’ final assembly lines from a state-of-the-art aerospace facility in Bengaluru. Under Sehgal’s guidance, Motherson Group has grown into a multi-industry powerhouse, representing India on the global stage and showcasing entrepreneurial excellence.

Samvardhana Motherson International, a major Indian auto parts supplier, is set to acquire Atsumitec, a Honda Motor-affiliated company specializing in transmission and engine components. The acquisition is valued at 8.5 billion yen (approximately $56 million) and will see Motherson own 95% of Atsumitec, while Honda will retain a 5% stake. The deal is expected to close as early as March. Atsumitec, located in Hamamatsu, will continue to operate under its current name and President Hideyuki Suzuki will remain at the helm.

The acquisition is seen as a strategic move by Motherson to prepare for the transition to electric vehicles. As the automotive industry shifts towards more environmentally friendly powertrains, the demand for electric vehicle components is expected to increase significantly. By acquiring Atsumitec, Motherson will be well-positioned to capitalize on this trend and expand its portfolio of products and services.

Atsumitec has a long-standing relationship with Honda, dating back to its founding. As a result, the acquisition is seen as a natural evolution of their partnership. The deal also bodes well for Honda, as it will allow the company to maintain a significant stake in Atsumitec, while also giving it exposure to the Indian auto parts supplier’s global supply chain.

In terms of its plans for Atsumitec, Motherson has stated that it intends to maintain the company’s current operations and management structure, including President Hideyuki Suzuki. This suggests that the acquisition will be a bolt-on deal, with minimal disruption to Atsumitec’s day-to-day operations. Instead, the acquisition will likely be used as a springboard for Motherson to expand its presence in the Asian market, particularly in Japan, and capitalize on the growing demand for electric vehicle components.

Samvardhana Motherson International Limited (NSE:MOTHERSON) is a company that has seen its stock price decline significantly over the past year, making it look inexpensive. However, according to Simply Wall St, the company’s current valuation may not be attractive enough to warrant investment. The company’s price-to-earnings (P/E) ratio is lower than its industry average, indicating that the stock is undervalued. Additionally, the company’s dividend yield is higher than its industry average, making it an attractive option for income investors. However, the company’s financial performance has been declining over the past year, with its revenue and earnings per share (EPS) both decreasing. The company’s debt-to-equity ratio is also higher than its industry average, which could be a concern for investors. Overall, while Samvardhana Motherson International Limited may look inexpensive, its declining financial performance and high debt levels may make it a less attractive option for investors.

India-based company Samvardhana Motherson (SM) has emerged as the winning bidder in a public auction process to acquire the assets of Prysm Systems, a leading provider of digital displays and enabling technologies. The auction was conducted by Prysm Systems’ court-appointed receiver, who oversaw the sale of the company’s assets to pay off its creditors. Samvardhana Motherson, a leading global mobility solutions provider, has secured the assets of Prysm Systems through a competitive bidding process. The acquisition will enable SM to expand its product portfolio and capabilities in the digital display and enabling technologies space. The deal is subject to regulatory approvals and is expected to be completed by the end of 2022. The acquisition is a strategic move by Samvardhana Motherson to solidify its position in the global marketplace and cater to the growing demand for digital displays and enabling technologies.

Samvardhana Motherson International Ltd (SMIL) has taken steps to secure the assets and patented technology of Prysm Systems, a technology-driven entity, through its indirect subsidiary MSSL Consolidated Inc. (MSSL Consol). Due to unmet conditions for converting the 12% optionally convertible secured notes into equity, SMIL has initiated a statutory foreclosure process and public auction for Prysm’s assets to ensure full ownership and control over the innovations. To maintain continuity of the development work, SMIL will provide interim financing of up to $3.8 million. The company has already accounted for the investment in Prysm under conservative accounting policies, ensuring no adverse impact on profitability. Additional updates on the foreclosure process will be provided by the end of March 2025. This move reflects SMIL’s commitment to leveraging Prysm’s cutting-edge technology while safeguarding its financial interests.

Samvardhana Motherson International (NSE:MOTHERSON) has delivered impressive returns to its investors over the past five years. According to Simply Wall St, the company’s stock has increased by 136% during this period, making it a significant performer in the market. The strong returns are likely due to the company’s successful business model, which has enabled it to expand its operations and increase its market share.

Samvardhana Motherson Irevna (SML) is an Indian multinational conglomerate with a significant presence in the automotive and technology industries. The company’s financials have raised concerns about its high leverage, with a net debt-to-equity ratio of 1.36, which is higher than the industry average. This high debt level may put the company’s financial stability at risk and limit its ability to respond to unexpected expenses or downturns in the market.

The company’s high debt-to-equity ratio is due to its aggressive expansion strategy, which has led to significant capital expenditures. Moreover, SML’s interest expenses have been increasing significantly, which has put additional pressure on its profit margins. The company’s interest coverage ratio, which measures its ability to pay interest expenses, has also been declining, indicating potential concerns about its ability to service its debt.

However, it’s worth noting that SML’s revenue has been growing at a CAGR of 12.5% over the past five years, indicating its ability to generate significant cash flows to service its debt. Nevertheless, given its high debt levels, investors may be concerned about the company’s financial health and its ability to maintain its growth momentum in the long term.

Samvardhana Motherson International Ltd is acquiring Brazilian auto component maker Baldi Industria E Comercio Ltda for $7.8 million. The deal will see Samvardhana’s subsidiary, Samvardhana Motherson Automotive Systems Group B.V., acquire 100% of Baldi Industria’s shares. The Brazilian company provides wrapping solutions and soft-touch surfaces for interior components, such as door panels and instrument panels. The acquisition enhances Samvardhana’s capabilities in the South American region and supports its existing module and polymer footprint. The deal is subject to certain conditions and is expected to close by the first quarter of the next financial year. The consideration will be paid in cash, with a $2.8 million holdback to secure seller indemnification obligations for up to five years. This is the latest in a series of acquisitions by Samvardhana Motherson, including its buyout of Atsumitec and stake in REE Automotiv.

Samvardhana Motherson Group (SMG) has agreed to acquire a 95% stake in Japan’s Atsumitec Co Ltd for $57 million. The deal is expected to expand SMG’s presence in the Japanese market and weaken the country’s fixed-income traders. Atsumitec, a provider of manufacturing and maintenance services, will continue to operate independently and maintain its relationships with existing clients. The acquisition is part of SMG’s strategic expansion in Asia, particularly in Japan. The company aims to leverage Atsumitec’s expertise and network to increase its presence in the region. The acquisition is subject to regulatory approval and is expected to be completed by the end of 2023. SMG is a leading Indian conglomerate with a diverse portfolio of businesses, including automotive, aerospace, and healthcare services. The company has been actively expanding its global footprint through strategic acquisitions, with a focus on high-growth markets like Asia.