Samvardhana Motherson International Ltd (SAMIL), formerly known as Motherson Sumi Systems Ltd, stands as a testament to India’s prowess in the automotive components sector. Established in 1986 as a joint venture with Japan’s Sumitomo Wiring Systems, the company has evolved into a global leader in manufacturing wiring harnesses, plastic components, and rearview mirrors for passenger vehicles. Headquartered in Noida, Uttar Pradesh, SAMIL employs over 129,000 individuals across more than 40 countries, underscoring its expansive global footprint.
Financial Performance: A Snapshot of FY2024-25
For the fiscal year 2024-25, SAMIL reported a consolidated revenue of ₹1.13 trillion, marking a 15.16% increase from the previous year’s ₹981.55 billion. However, the company faced a 22.75% year-on-year decline in profit after tax (PAT), which stood at ₹1,115.38 crore compared to ₹1,444 crore in the same quarter the previous year. This dip in profitability was attributed to increased raw material costs and expansion-related expenses.
Strategic Acquisitions and Global Expansion
SAMIL’s growth trajectory is significantly influenced by strategic acquisitions. In 2023, the company acquired a 51% stake in Saddles International, an Indian automotive upholstery company, and 100% of SAS Autosystemtechnik, a German automotive cockpit manufacturer, from Faurecia at an enterprise value of €540 million. Additionally, SAMIL acquired an 81% stake in the four-wheeler business of Yachiyo Industry, a Honda Group company. These acquisitions bolster SAMIL’s capabilities in producing cockpit modules, interior systems, and lighting solutions.
Diversification into Non-Automotive Sectors
Demonstrating a forward-thinking approach, SAMIL announced plans to allocate approximately 70% of its ₹6,000 crore capital expenditure for FY26 towards non-automotive segments. This strategic shift aims to diversify the company’s portfolio and reduce dependency on the automotive industry, positioning SAMIL to capitalize on emerging opportunities in sectors such as aerospace, logistics, and healthcare.
Market Performance and Investor Sentiment
Despite challenges in profitability, SAMIL’s stock performance reflects investor confidence. The company’s shares have shown resilience, with an 11.6% surge in open interest, indicating increased investor interest and participation.
Future Outlook
Looking ahead, SAMIL’s focus on innovation, strategic acquisitions, and diversification positions it well for sustained growth. The company’s commitment to delivering full system solutions across various industries, coupled with its robust engineering and manufacturing expertise, underscores its potential to remain a formidable player in the global market.
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Last Updated on: Friday, October 24, 2025 7:09 pm by Sakethyadav | Published by: Sakethyadav on Friday, October 24, 2025 7:09 pm | News Categories: News
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