Auto component maker Motherson Sumi Systems Ltd (MSSL) today said it will merge three group firms with itself as it looks to consolidate business.
The company, which has set a target of becoming a $5 billion entity by 2015, said its board of directors has approved the merger of Sumi Motherson Innovative Engineering Ltd (SMIEL), MSSL Global Wiring Ltd (MGWL) and India Nails Manufacturing Pvt Ltd (INMPL) with itself.
The board further approved appointment of independent valuer for determining fair exchange ratio for the merger of SMIEL, presently a subsidiary of Sumitomo Wiring Systems (SWS), the company said.
"These consolidations are all a part of the plans to achieve the target of becoming $5 billion entity by 2015," MSSL Chief Financial Officer G N Gauba said.
As of 2009-10, the MSSL group had a turnover of $1.5 billion, he added.
Gauba said Deloitte will determine the fair exchange ratio for the merger of SMIEL and the process is likely to be completed in 3-4 weeks, while the whole process of merging the three group firms could be over in 6-9 months.
SMIEL is a company engaged in the manufacture of components for wiring harnesses and other plastic components, while MGWL is into manufacturing of wiring harnesses at SEZ Kandla. INMPL is a wholly-owned subsidiary having mainly land and building.
MSSL is the flagship company of the Samvardhana Motherson Group, is a joint venture between Samvardhana Motherson Group and Sumitomo Wiring Systems (Japan).
The company's scrip closed the day at Rs 225.80 on the BSE, down 1.83% from the previous close.
