Motheron Sumi, the auto part manufacturer has registered a whopping increase in their net profit for the 3rd quarter, to the tune of 43 percent. The auto parts maker is now mulling to invest Rs 5 billion in the New Year to further its capacity which includes building up new plants at South Africa, Thailand and Brazil.
A recent report revealed that the company has just reported a combined Net Profit of a handsome Rs. 106.37 crores for the 3rd quarter of this fiscal. This is a dwarfing figure when compared to the net profits of the same period in the last year which was a paltry 74.88 crores. Total gross income for the third quarter also saw a jump of 18.62 percent translating in to a figure of 2152,57 crores from almost the half amount it earned last year, 1814.81.
CEO of Motherson Sumi Systems, Mr. Pankaj Mittal was quote as saying that the last quarter of the current fiscal has witnessed a robust growth in the domestic market which has helped the company immensely to build up its fortunes. He stressed that greater cost-control measures and an optimum utilization of capacity was the key in these developments.
CFO of Motherson Sumi Systems Ltd Mr. G N Gauba was quoted as saying that the company will be investing an amount of Rs 500 crores in the next fiscal year to expand the existing capacities and in the process adding up new facilities across the world. Giving further details of the plan he said, that the investment amount would be fairly shared between overseas and Indian markets. Motherson Sumi which is one the largest manufacturers of rear –view mirror across the globe is already in the construction phase of a Greenfield set-up in the Latin South American country of Brazil. The Brazilian facility is expected to go online in the next 18 months tentatively.
The report in its intricacies mentioned that the rear-view mirror manufacturer has announced its intention to endow a sum of up to Rs 500 crores in the current fiscal year in order to set up new facilities at Pune, Chennai, Bangalore and Hadlwani (located in the newly carved state and mineral-rich state of Jharkhand). These facilities are built to supply various components to automobile manufacturers like Ashok Leyland, Nissan, Tata Motor and Toyota Motors. This company is a flagship company of the Samvardhana Motherson Group. The joint venture between the group and Sumitomo Wiring of Japan, together have a presence in 22 countries across the world with a total tally of 90 facilities.