Motherson drives its Aerospace business further, with completion of acquisition of the majority stake in CIM Tools
India Infoline News Service |
07 Apr, 2022 |
Motherson Sumi Systems Limited (MSSL) has successfully completed the acquisition of a majority stake in CIM Tools Private Limited. As announced earlier, MSSL has acquired a 55% stake in CIM Tools Private Limited (CIM). CIM in turn holds 83% in Aero Treatment Private Limited (ATPL) and 49.99% in Lauak CIM Aerospace (JV with Lauak International, LCA). CIM, ATPL and LCA are hereinafter referred to as â€œCIM Groupâ€. The three founders, Srikanth GS, Umesh AS and Vishwanath Deshpande, retain the remaining 45% stake in CIM.
Since the initial announcement on October-21, CIMâ€™s order book has grown 26% to ~$ 252 Mn. CIM Groupâ€™s provisional revenue in Q4 FY22 was ~Rs548 million, implying a strong recovery to pre-COVID levels (Revenues of Rs2,031 million in FY20 and Rs1,296 million in FY21). The strong recovery in revenues reaffirms CIMâ€™s capabilities and position in the global aerospace supply chain ecosystem.
CIM Tools is engaged in specialized machining and sub-assembly of components for the aerospace industry. ATPL is a vertically integrated unit engaged in surface treatment of machined parts.
This acquisition marked MSSLâ€™s entry into the Aerospace industry and provides it with access to an existing and wellestablished customer base as well as additional specialised capabilities to serve the aerospace industry through its four dedicated facilities. The successful closure of this acquisition is another step forward in the diversification strategy of Motherson.
At around 12.18 pm, Motherson Sumi Systems Ltd was trading at Rs144.70 per share up by Rs0.55 or 0.38% from its previous closing of Rs144.15 per share on the BSE.
Vivek Chaand Sehgal, Chairman, Motherson said, â€œWe are delighted that all acquisition-related formalities have now been completed, and we are happy to welcome CIM Tools to the Motherson family. Apart from our continued focus on the automotive business, we are always looking to expand our non-automotive businesses as well. As part of our five-year plan Vision 2025, we believe this acquisition will lay a solid foundation for the growth of our aerospace business.â€
Srikanth, Umesh, and Deshpande, said â€œThe successful closure of transaction is mutually beneficial for CIM Tools and Motherson. CIM Toolsâ€™ existing capabilities coupled with Mothersonâ€™s manufacturing expertise and global presence will enable us to provide enhanced solutions and create additional value for our customers. We are truly delighted to be part of the Motherson family.â€