There is a buzz that Motherson Sumi Group is close to acquiring a Germany-based company called Leoni Group. CNBC-TV18 finds out more from Vivek Chaand Sehgal, chairman at Motherson Sumi Group.
“The company continues to look at multiple options which are there, but it is important for you to understand that we do not take over any company, not even the company you are talking about unless there is a customer who is asking us to look at it,” he said.
He further added, “We have 6 acquisitions that we are looking at very seriously. We have been looking at it since February this year. At this particular moment, we are studying 6, so the geographies are 2 are in India, 2 are in Europe and 2 are in America.”
When asked about debt position Sehgal said, “We have just raised $300 million approximately from the Indian banks, mutual funds and all that and we will add about another $100 million to it and then we pay some of the debt. We are not very worried about the debt because the $1.2 billion as you make it out to be is actually servicing a $11 billion revenue, so there is working capital, there are long term bonds and things like that. So I really wonder whether if you go through the whole mechanics of it, as it is actually built very comfortable positions.”
Talking about the five-year plan of FY20-FY25 and targeting revenues to grow by 3x to USD 36 billion he said, “We think that there is a tremendous amount of pain in the system and globally we see a lot of companies which will get into trouble because of this COVID fiasco that has happened. We believe that the customers are going to ask us to solve a lot of their problems and that is why the target is at USD 36 billion. It is a figure which we try to put out in our five-year plan and it is 3x.”
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