To simplify the group structure, Motherson Sumi Systems Ltd. (MSSL) recently approved a group reorganisation plan. The plan entails a demerger of the Domestic Wiring Harness (DWH) business from MSSL into a new company, in the process of being incorporated as a wholly-owned subsidiary of MSSL. Approved with an objective to help business grow across product portfolios within the auto components space and allied operations, the move is being looked at as beneficial for shareholders too. Vivek Chaand Sehgal, Chairman, MSSL said, “The simplification of group structure has been a long-standing request from our shareholders and the proposed reorganisation is a step in that direction.” Signed off by the respective boards of MSSL and Samvardhana Motherson International (SAMIL), it also entails the merger of the latter into the former. Consolidating 100 per cent shareholding in Samvardhana Motherson Automotive Systems Group BV (SMRP BV), the transaction is likely to be completed by Q2FY22.
