In a regulatory filing with the stock exchanges about the outcome of the Hon’ble NCLT convened shareholder meeting, Motherson Sumi Systems Ltd. (MSSL) informed that the public shareholders (non-promoter) voted in favour of the proposal with an overwhelming majority. It is said to have paved the way for the successful completion of the proposed restructuring. 99.44 per cent of the non-promoter shareholders who voted, were in favour of the proposed restructuring. In addition, the requirement of obtaining creditors approval was also waived off by the Hon’ble NCLT for the scheme. Post the proposed reorganisation is completed, two growth-focused listed companies will emerge. Of the two companies, Motherson Sumi Wiring India Ltd. (MSWIL) will be the largest listed automotive wiring harness player in India with a nationwide manufacturing footprint. Expected to benefit from the continued parentage of MSSL along with an increased focus from Sumitomo Wiring Systems, Japan (SWS) will cater to the Indian automotive market. It will also work towards bringing in new solutions for electric vehicle offerings. The second company, Motherson Sumi Systems Ltd. (MSSL) combined with the business of Samvardhana Motherson International Ltd. (SAMIL) is expected to form the base of the stated ‘Vision 2025’. The latter’s full ownership of its international business Samvardhana Motherson Automotive Systems Group BV (SMRPBV) is expected to simplify the group structure and enhance cash flows. Diversifying MSSL’s revenue and product mix, the move brings along the addition of new products like automotive lighting, shock absorbers, sheet metal, HVAC and others in line with the company’s 3CX10 strategy.
