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 "CIM Group". The three founders, Mr. Srikanth GS, Mr. Umesh AS and Mr. Vishwanath Deshpande, retain the remaining 45% stake in CIM.
Since the initial announcement in October-21, CIM's order book has grown 26% to ~$ 252 Mn. CIM Group's provisional revenue in Q4 FY22 was ~INR 548 Mn, implying a strong recovery to pre-COVID levels (Revenues of INR 2,031 mn in FY20 and INR 1,296 mn in FY21). The strong recovery in revenues reaffirms CIM's capabilities and position in the global aerospace supply chain ecosystem.
CIM Tools is engaged in specialised 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 MSSL'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.
Commenting on the deal, Mr. Vivek Chaand Sehgal, Chairman, Motherson said, "We 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."
Commenting on the deal, Mr. Srikanth, Mr. Umesh and Mr. Deshpande, said "The successful closure of transaction is mutually beneficial for CIM Tools and Motherson. CIM Tools' existing capabilities coupled with Motherson'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."
Shares of Motherson Sumi Systems Limited was last trading in BSE at Rs. 144.15 as compared to the previous close of Rs. 145.15. The total number of shares traded during the day was 297507 in over 3030 trades.
The stock hit an intraday high of Rs. 145.20 and intraday low of 142.55. The net turnover during the day was Rs. 42796864.00.