Samvardhana Motherson International Limited. Annual Report Years of Motherson. and so on...

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1 Samvardhana Motherson International Limited Annual Report Years of Motherson and so on

2 Contents: Page Corporate Information Vision, Mission & Values Vision Years of Motherson Product Range Evolution Group Joint Ventures Group Acquisitions Serving Customers Globally Chairman s Letter Samvardhana Motherson International Limited Shareholding Structure Major Group Holding Companies Growing with Customer Trust Group Business Portfolio Awards & Recognition Directors Report Independent Auditors Report Balance Sheet Statement of Profit and Loss Cash Flow Statement Notes to The Financial Statements Consolidated Financial Statements Disclaimer In this Annual Report, we have disclosed forward-looking information to enable investors to comprehend our prospects and take informed investment decisions. This report and other statements written and oral that we periodically make contain forward-looking statements that set out anticipated results based on the management s plans and assumptions. We have tried, wherever possible, to identify such statements by using words such as anticipate, estimate, expects, projects, intends, plans, believes, and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward-looking statements will be realized, although we believe we have been prudent in our assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Readers should bear this in mind. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

3 Corporate Information Board of Directors Registered Office Mr. Vivek Chaand Sehgal Chairman Mr. Laksh Vaaman Sehgal Director 2nd Floor, F-7, Block B-1, Mohan Cooperative Industrial Estate, Mathura Road, New Delhi , India Telephone: Facsimile: Website: Mr. Hiroshi Morimoto Director Investor Cell Mr. Mikihisa Takayama Director Mr. Ramesh Dhar Director Mr. Bimal Dhar Director Mr. Ashok Tandon Director Ms. Pooja Mehra (Company Secretary) Registrar and Share Transfer Agent Link Intime India Private Limited A-40, 2nd floor, Naraina Industrial Area Phase-II, Near Batra Banquet Hall, New Delhi Mr. Vivek Avasthi Director Ms. Geeta Soni Director Ms. Nilu Mehra Director Ms. Madhu Bhaskar Director Mr. Dhruv Mehra Director Statutory Auditors Price Waterhouse Chartered Accountants LLP Building 8, Tower B 7th & 8th floor DLF Cyber City Gurgaon Haryana, India Firm Registration no.: FRN N/N Internal Auditors M/s Protiviti 15th Floor, Tower A, DLF Building No.5, DLF Phase III, DLF Cyber City, Gurgaon , Haryana Bankers Axis Bank Ltd. Samvardhana Motherson International limited 1

4 SMIL, a key enabler for SMG Samvardhana Motherson International Limited (SMIL) is the principal holding company of the Samvardhana Motherson Group. Samvardhana Motherson Group (SMG) was established in 1975, 40 years ago and is today one of the world s fastest growing specialized automotive component makers for original equipment manufacturers (OEMs), operating in over 25 countries, having over 170 manufacturing facilities, with a turnover of approximately USD 6.9 billion in the fiscal year In 2004 Samvardhana Motherson International Limited (SMIL) was established and it became the main vehicle to take the Group forward. Major investments in the Group are held through SMIL. The company binds and manages the different ventures of the Group. SMIL undertakes the provision of design and manufacturing solutions, mainly to the automotive industry, through subsidiaries and joint ventures with partners in the relevant fields. 2 Annual Report

5 VISION To be a Globally Preferred Solutions Provider MISSION Ensure customer delight Involve employees as partners in progress Enhance shareholder value Set new standards in good corporate citizenship VALUES Be a lean, responsive and learning organisation Continuously improve to achieve world-class standards and total customer satisfaction Proactively manage change Maintain high standards of integrity and safety Ensure a common culture and a common set of values throughout the organisation Recognise individuals contributions Develop stronger leadership skills, greater teamwork and a global perspective Constantly upgrade skill levels across the organisation through knowledge sharing programmes Samvardhana Motherson International limited 3

6 VISION 2020 In , we started working with 5 year plans. Since we started to print our targets for the next 5 year plans in our Annual Report. Today, Motherson only gives a 5-year guidance. For all the plans declared so far, we have always performed well to achieve our targets. Turnover ROCE Spread Dividend 4 Annual Report

7 Target for Target for US$ 26 billion FY US$ 18 billion FY % ROCE (consolidated) 40% ROCE (consolidated) 3CX15 No country, customer or component should contribute more than 15% of our revenues. 3CX15 No country, customer or component should contribute more than 15% of our revenues. 40% of profit as dividend. (consolidated) Samvardhana Motherson International limited 5

8 40 Years of Motherson The history of 40 years of SMG indicates that the core of its evolution lies in its ability to forge and build lasting relationships. Building and sustaining relationships has been the core mantra for SMG and has always formed an integral part of its business philosophy since inception - a relationship built on trust. SMG owes its success to its customers. Our customers have been our guiding force in the last 40 years. It is because of them that we venture into new products, forge new partnerships, enter new geographies and acquire companies that have synergies with us. The names associated with SMG since the beginning, continue to do business with the Group in 2015 also. It s a journey of progression and progress- a journey dotted with milestones. SMG s threefold growth strategy organic growth, joint ventures and acquisitions has played a pivotal role in this journey. Motherson has grown organically. Motherson s growth has been fuelled by a diversified base in terms of human capital, geography, products, customers and the industry segments it serves. Feeling the pulse of the market, coupled with complete focus on quality and consistency of delivery- has allowed us to retain our customers and gain new ones. SMG is a believer in collaborations. SMG s joint ventures have essentially focused on enhancing efficiencies and ensuring total customer satisfaction. Collaborations with global leaders have helped SMG serve its customers better by maintaining a competitive edge. Identifying and building synergies with its collaborators in new geographies and product ranges is a necessity for the company to grow Another growth engine for the Group has been to grow inorganically through acquisitions. What sets SMG apart in this league is that most of its acquisitions have been propelled by its existing customers. Customers who trust the company to turn around assets in distress insist on acquisitions which have synergies with our product range. This leads to value creation for SMG and reliability in business for our customers. The Company thus continues to move forward in its growth odyssey through its 3 growth engines 6 Annual Report

9 The Beginning Motherson was founded in Motherson Sehgal Cables st collaboration for Wiring Harness Manufacturing 1986 The flagship company of Samvardhana Motherson Group established Samvardhana Motherson International limited 7

10 Product Range Evolution As part of our organic growth, we have always had the strategy of increasing our content per car. We followed the two pronged approach of supporting the existing customers with new products and also supplying the existing product range to the new customers. Our product range has diversified over the years, with new verticals being added to the existing, always keeping in mind the customers present and future requirements. Injection Moulded Components Cutting Tool Manufacturing Injection Moulding Tools Automotive Cockpit Assemblies Automotive Rearview Mirrors Blow Moulded Components Door Trim Assemblies Extruded Rubber Parts & Industrial Rubber Mounts HVAC Systems for Passenger Cars Lighting Systems, Pedal Box Assembly & Air Intake Manifolds Gear Cutting Tool Manufacturing Polymer Compounding HVAC Systems for Commercial Vehicles & Off Highway Vehicles Gear Cutting Tools Body Control Modules Vacuum Formed Products Bimetal Band Saw Blades Thin Film Coating Metals 8 Annual Report

11 We have always worked towards being a full system solutions provider to our customers. We try to cater to all the needs of our customers. We have worked towards vertical integrations across our product range to decrease our dependence on external sources, which in turn creates a market differentiation for us in terms of our product quality, accuracy of delivery, resulting in customer delight. Precision Machined Metal Components Injection Moulded Rubber Components Air Compressers IT and Design Engineering Liquid Silicone Rubber Injection Moulding Machined Metal Component PVC Tube Manufacturing Aerobin Waste Recycling System Automotive Manufacturing Engineering Bus Air- Conditioning Systems Sintered Metal General Purpose and Engineering Plastic Products Shock Absorbers Extrusion Profiles, Parts made of Thermoplastics and Hybrid Parts made of Metal & Plastic Interior Assemblies Samvardhana Motherson International limited 9

12 Group Joint Ventures We have always believed in the power of collaborations. To provide best suited solutions to our customers we collaborate with industry leaders for specialised knowledge, new products, methodologies and the latest technologies. Such collaborations help us maintain a competitive edge in the market and help us emerge as a full system solutions provider for our customers. With the first JV in 1986, SMG today has 30 joint venture companies with 25 joint venture partners from 11 countries across the globe. We have multiple JV partners and multiple JVs with same partner. This emphasizes the importance of mutual understanding and trust which form the foundation of these relationships. Sojitz Corporation, Japan Sumitomo Wiring Systems, Japan Kyungshin Industrial Co. Ltd., S. Korea Automotive Engineering Services Co. Ltd. Japan Ecompost, Australia Co. Calsonic Kansei Corp., Japan Nachi Fujikoshi Corp, Japan Nissin Electric Co. Ltd., Japan Sumitomo Electric Hardmetal Corp., Japan Anest Iwata Corporation, Japan Fritzmeier Systems GmbH & Co., Germany Matsui Mfg Ltd, Japan Spheros GmbH, Germany 10 Annual Report

13 Dermotech GmbH & Co. KG (ORCA), Germany Magneti Marelli Holding SPA, Italy Bergstrom Inc., USA Nippon Pigments (S) Pte. Ltd, Singapore Toyota Tusho Corporation, Japan Ningbo HuaXiang Electric Co. Ltd., China Poong Jeong Ind. Co. Ltd., South Korea Vacuform, South Africa Sintermetal, Spain Changchun Automotive Interior, China Blanos Partners S. L., Spain Eissmann Automotive, Slovakia Samvardhana Motherson International limited 11

14 Group Acquisitions We have been growing with inorganic growth and strategic acquisitions where acquisitions have been consistent with strategic goals of the Group. We have done 16 acquisitions so far. Most of the acquisitions done by us have been done on customers behest and their support. The long standing relationships and the trust shared with customers make them ask us to acquire the companies which have synergies with us and which add value to our customers. These acquisitions have brought with them synergies which have helped us to grow across businesses, get access to new geographies, enhance our technological capabilities and expand our product range. ASL Systems, UK F.P. Farmagrau Srp, Czech republic Wexford Electronix, Ireland Huron Corporation, (Door Trim Business) Australia G & S Kunststofftechnik, Germany Empire Rubber, Australia Reiner Precision, Germany 12 Annual Report

15 The product ranges of the acquired entities have had strong synergies with the existing product range of the Group. For every addition to its capability and product range we have moved forward towards our vision of being a globally preferred solutions provider. Stoneridge Inc. (Wiring Harness Business), USA Magneti Marelli Shock Absorbers India Pvt. Ltd Visiocorp Plc, UK (Rear View Mirrors Business) Dagger Forst, India Scherer & Trier, Germany Minda Schenk (asset purchase), Germany Vacuform 2000 Pty. Ltd, South Africa Sintermetal S.A, Spain Peguform, Germany Samvardhana Motherson International limited 13

16 Serving Customers Globally Starting as a single unit single location company SMIL is now present in 25 countries with over 170 plants supported by a network of design, engineering, marketing and global sourcing centres across the globe. This global network places SMIL in a suitable position to utilize opportunities and growth in whichever region of the globe they emerge. This gives SMIL a distinct advantage as it can support its customer programs across the world on a global level making it a preferred source. Manufacturing and supplying to customers in the same geographies also provide natural hedging to global currency fluctuations USA 2 Mexico 3 Brazil 4 UK 5 Ireland 6 France 7 Italy 8 Portugal 9 Spain 10 Netherlands 11 Germany 12 Czech Republic 13 Slovakia 14 Hungary 15 India 16 China 17 Japan 18 South Korea 19 Thailand 20 Singapore 21 Sri Lanka 22 Australia 23 South Africa 24 Mauritius 25 Sharjah 14 Annual Report

17 TAPUKERA > Plastic Moulding & Assemblies PATHRIDI > Wiring Harnesses NOIDA & NCR REGION (NOIDA, GURGAON, FARIDABAD, MANESAR) > Wiring Harnesses > Wiring Harness Components > Plastic Moulding & Assemblies > Rubber Injection Moulding > IP, Door Trim & Bumper > Mirrors > Injection Moulding Tools > IT Solutions > Engineering & Design > Cutting Tools > Machining Solutions > Thin Film Coating Services > Air Compressors > Paint Coating Equipment > Auxiliary Equipment for Injection Moulding Machines > Automotive Manufacturing Engineering > Bimetal Band Saws Blades > Bus Air Conditioners > Automotive Lighting > Air Filters > HVAC Systems For Passenger Cars > HVAC Systems For Commercial Vehicles > Forming Racks > Gear Cutting Tools > Pressure Die Casting KANDLA > Wiring Harnesses > Rubber Injection Moulding HALDWANI > Wiring Harnesses LUCKNOW > Wiring Harnesses AURANGABAD > Gear Cutting Tools NASHIK > Mirrors > Wiring Harnesses PUNE > Wiring Harnesses > Plastic Moulding & Assemblies > Automotive Manufacturing Engineering > Automotive Lighting > Air Intake Manifolds > Mirrors > Shock Absorbers BENGALURU > Wiring Harnesses > Wires > Plastic Moulding & Assemblies > Metal Machining > Mirrors CHENNAI > Wiring Harnesses > Wires > Plastic Moulding & Assemblies > Rubber Moulding > IP, Door Trim & Bumper > Mirrors > Injection Moulding Tools > Cabins For Off- Highway Vehicles > Components & HVAC Systems > Polymer Compounding PUDUCHERRY > Plastic Moulding & Assemblies > Sintered Metal Parts Samvardhana Motherson International limited 15

18 Letter from the Chairman. Dear Shareholders, The Fiscal has been a year marked with important milestones. It was a landmark year due to new acquisitions, the successful completion of our target plan 2015 and the launch of Vision This year is also special, because it was 40 years ago in 1975 that we started Motherson, and thus began this incredible journey. 16 Annual Report

19 Samvardhana Motherson International limited 17

20 40 years of Motherson This year Motherson completes 40 years of its formation. This has been a milestone achieved with performance, trust and dedication from all. My mother and I started Motherson in It was a trading company then. In 1977 we started with a cable and wire manufacturing unit. We were considered for supplying wiring harnesses to Maruti Suzuki after demonstrating the capability to develop new things by developing a T-Coupler in the stipulated time. We started supplying wiring harnesses for Maruti SS80, their first car produced in India. Soon after that, we entered our first technical agreement with Sumitomo. A joint venture with Sumitomo led to the formation of the flagship company Motherson Sumi Systems Limited (MSSL). We have worked consistently over the years, focused on QCDDMSES which has built our customers trust in us. The trust of customers gives us opportunities for more collaborations, organic and inorganic growth. This trust with all our stakeholders is the foundation of our success. This has been the basis of transformation of the group from a single product, single location company to a global solutions provider present in 25 countries, with over 170 manufacturing facilities employing over 72,000 people. Ours is a journey of relationships built on trust. It is a matter of pride for us that this year we received the prestigious Global partnership Award 2015 from Daimler, Volkswagen Group Supplier Award 2015, Toyota Regional Contribution Award and also the Ford Supplier of the Year for South American Region. Performance during FY This year we made solid progress on many fronts, despite challenges at the macro level. The global automotive market has been uneven. Certain markets have been growing well while the outlook in a few markets is a little weak. The global production of passenger cars and commercial vehicles has increased by 2% in with moderate growth in Europe, North America and Asia (excluding India). We have our presence in 25 countries globally. A balanced presence across the globe and varied product lines is our best insulation from market cycles and short term product challenges. This has been a good year for SMIL. The consolidated sales were up by 26.6%. Consolidated EBITDA & PBT grew by 29.29% and 33.73% respectively, while net profit grew by 44% to Rs. 7,331 million. SMIL is providing central support, strategy and management direction to all the other Group companies and gearing up the Group for growth in all segments. Motherson Sumi Systems Limited (MSSL) the flagship company of the Group performed well. Consolidated Sales ended at Rs 34,490 crore (US$ 5.5 billion). For the first time ever MSSL s standalone ROCE stands at 41%. The wiring harness business, operated through MSSL has done well. The acquisition of the wiring harness business of Stoneridge Inc. along with 6 manufacturing units spread across the USA and Mexico has further strengthened our base in the American market. The business has been renamed as Motherson Wiring System Inc. Samvardhana Motherson Automotive System Group BV (SMRPBV),a joint venture between SMIL and MSSL, through their subsidiaries, Samvardhana Motherson Reflectec (SMR) and Samvardhana Motherson Peguform (SMP), grew its revenue by 15% in Euro terms. SMRP BV has announced new orders worth over Euro 4.2 billion for SMRPBV. SMRPBV also acquired minority shareholding in SMP & SMR. This year SMRPBV further strengthened its finances by completing issue of 4.125% seven year Euro 500 million bonds. The mirror business, operated through SMR performed very well and registered a revenue growth of 14% at Euro 1,276 million till March 31, There has been strong growth in EBITDA at 16% in Euro terms. We are coming up with new facilities and expanding capacities of our plants in the USA and China to meet the significant increase in demand from customers. The polymer business has also performed phenomenally well. SMP registered a growth of 16% in revenue with 31% increase in EBITDA margin and substantial growth in PBT & PAT. SMP is coming up with new plants and expanding its capacities in various locations of China, Germany, Latin America, Spain and Mexico. The acquisition of assets of Scherer & Trier group was done through MSSL s subsidiary SMRPBV and has increased our product base with extruded and injection-moulded exterior and interior components. The integrated company is called Samvardhana Motherson Innovative Autosystems (SMIA). Through MSSL we also purchased assets of Esslingen (Germany) plant of Minda Schnek. ( in administration ) The plant manufactures moulded interior plastic parts including kinematic and surface parts through 2K and skin form technologies and exterior parts including fuel tank lids. A new company Samvardhana Motherson Auto Component Private Limited, a wholly owned subsidiary of SMIL, is setting up a 18 Annual Report

21 facility for pressure die casting in the state of Haryana in India. The new manufacturing facility of Calsonic Kansei Motherson (CKM), that has come up in Bawal has started production. The main products manufactured in this facility are compressors and rotary assemblies. As our fourth acquisition in this year, we have acquired controlling stake in Magneti Marelli Shock Absorbers India Pvt. Ltd. This acquisition expands SMIL s business portfolio into the shock absorber category. SMIL and Magneti Marelli already have another successful existing JV in India for Lighting systems, Air Intake Manifolds and Pedal Assemblies since Magneti Marelli Motherson Auto System Pvt. Ltd. is coming up with two more facilities in Sanand, Gujarat and Bawal, Haryana in India for its automotive lighting range. Spheros Motherson Thermal System Limited is doing well, with new customers like Daimler and Scania CV India being added to the customer base. Motherson Bergstrom HVAC Solutions Pvt. Ltd. (MBSL) is also expanding its customer reach. Motherson Techno Tools Limited posted revenue of Rs. 1,249 million in FY , an increase of 7.1% from the last fiscal. Another company Motherson Sintermetal Technology Limited has started its facility in Puducherry in India. Motherson Orca Precision Technology GmbH (MOPT), a division of MSSL has expanded its business operation in Mexico for precision machining. Overall the metal division of SMIL has performed well. MothersonSumi INfotech & Designs Ltd. (MIND), representing the IT, Engineering & Design functions of the Group, posted a revenue increase of 11.2%. MIND is planning to expand its engineering services in Japan and Germany in the coming years. We continue to explore new geographies, new product categories having synergies with our existing products and new customers for growth. We are continuously working on meeting future requirements of customers with focussed R&D activities. We now have a group of experts from various departments who have formed a new team Motherson Innovations which focuses on the development of ground breaking technologies. The objective is to enter new market segments with innovative products, and to provide the Group companies with a range of cutting edge solutions and high value verticals. Vision 2020 It is a proud year for us. We stand at the cusp where we have successfully completed our targets for which we set in and we announce our targets for 2020 Vision We delivered on all our set targets. In terms of revenue MSSL achieved its targeted $ 5 billion mark and closed the financial year at $5.5 billion. The Group target of Rs 40,000 crore by 2015 has also been achieved. We have formulated our vision for Target for the Samvardhana Motherson Group (SMG) is to reach turnover of US$ 26 billion by FY The Group target is to achieve ROCE of 40% We would like to thank our esteemed customers for always reposing their trust in us; to our collaborators for enriching us with competitive technologies; to our employees who worked relentlessly in to fulfil our commitments and to all other stakeholders for supporting and trusting us all throughout these years. We also thank all local, state and national governments, the concerned bodies and the banks and financial institutions in all the countries in which we operate, for their continued support. On behalf of the entire SMIL team I would again express my gratitude to all the stakeholders of the company for their continued support in helping us in scaling new heights. We would continue to focus on long term value creation and together with your support look forward to achieving our Vision V.C. Sehgal Chairman Samvardhana Motherson International Limited. Samvardhana Motherson International limited 19

22 Samvardhana Motherson Interna onal Limited SMIL, the holding company of the Samvardhana Motherson Group is the main vehicle for exploring new business areas and forming new joint ventures for the Group in diversified areas, it plays a pivotal role in the growth of Samvardhana Motherson Group and each of its members, building lasting global bonds through new alliances. SMIL has investments in the Group companies including in the flagship company of the Group, Motherson Sumi Systems Limited (MSSL). The company holds 36.9% of equity share capital of Motherson Sumi Systems Ltd. (MSSL). As an enabler SMIL has supported MSSL with collaborative effort in acquiring Visiocorp (now Samvardhana Motherson Reflectec) in 2009 and Peguform (now Samvardhana Motherson Peguform) in SMIL provides central support, strategy and management direction to all the other Group companies. SMIL s growth is a combination of organic growth and acquisitions. The company has multinational business with manufacturing and design capabilities to cater to customer requirements. SMIL s diversified product portfolio encompasses the entire range of the Samvardhana Motherson Group products. The company operates through its various subsidiaries and joint ventures with partners across the globe to widen its product basket. plastic parts, injection moulding tools, assemblies and modules, vacuum formed products, elastomer products, cutting tools, thin film coating metals, sintered metal parts, IT services, engineering & design, cabins for off-highway vehicles, HVAC/ air conditioning systems for automobiles, lighting systems, air intake manifolds, air compressors, paint coating equipment, auxiliary equipment for injection moulding machines and automotive manufacturing engineering services. SMIL s extensive JV portfolio is a key contributor in the Group being positioned as a full system solutions provider to a wide range of industries. SMIL has successfully forged partnerships with global technological leaders and has 25 JV partners. SMIL has customers spread across multiple geographies. The company provides integrated full system solutions to its customers in all its product categories. The depth of backward integration coupled with its diversified product portfolio, provides SMIL with significant quality control and cost control advantages, lesser reliance on third party sources and shorter delivery and development lead times. The business portfolio includes: wiring harnesses, rearview mirrors, moulded 20 Annual Report

23 Shareholding Structure Sojitz Corporation Employees Sehgal Family Sumitomo Wiring Systems (SWS) Public & Other 6.5% 3.2% 90.3% Samvardhana Motherson International Limited (SMIL) 3.0% 25.6% 34.5% 36.9% Subsidiaries Joint Ventures/ Associates Motherson Sumi Systems Ltd. Motherson Advanced Tooling Solutions Ltd. Motherson Auto Solutions Ltd. AES (India) Engineering Ltd. Anest Iwata Motherson Coating Equipment Ltd. Air Factory Energy Ltd. Anest Iwata Motherson Pvt. Ltd. 49% 51% 51% Samvardhana Motherson Polymers Ltd. (SMPL) (India) Motherson Consultancies Service Ltd. MothersonSumi INfotech & Designs Ltd. CTM India Ltd. Magneti Marelli Motherson Auto System Pvt. Ltd. Fritzmeier Motherson Cabin Engineering Pvt. Ltd. Magneti Marelli Motherson Shock Absorbers (India) Pvt. Ltd. 49% Samvardhana Motherson Global Holding Ltd. (SMGHL), (Cyprus) 31% Motherson Machinery And Automations Ltd. Motherson Bergstrom HVAC Solution Pvt. Ltd. Motherson Air Travel Agencies Ltd. (Mata) 69% Motherson Molds And Diecasting Ltd. Nachi Motherson Precision Pvt. Ltd. Spheros Motherson Thermal System Ltd. SMRP BV Motherson Sintermetal Products S.A Nissin Advanced Coating Indo. Co. Pvt. Ltd. Matsui Technologies India Ltd. Motherson Sintermetal Technology Ltd. Saks Ancillaries Ltd. Other Jv s & Subsidiaries Samvardhana Motherson Refrigeration Product Ltd. Tiger Connect Travel Systems And Solutions Ltd. Motherson Techno Tools Mideast FZE Nachi Motherson Tool Technology Ltd. Motherson Techno Tools Ltd. Samvardhana Motherson Finance Services Cyprus Limited Samvardhana Motherson Holding (M) Private Limited Samvardhana Motherson Auto component Pvt. Ltd. Indirect Holding Samvardhana Motherson Auto system Pvt. Ltd. Samvardhana Motherson International limited 21

24 Major Group Holding Companies The flagship company of Samvardhana Motherson Group, Motherson Sumi Systems Limited (MSSL) is a joint venture between Samvardhana Motherson International Limited (SMIL) and Sumitomo Wiring Systems, Ltd., Japan (SWS). A collaboration with Tokai Electric Co. (now SWS) in 1983 led to incorporation of MSSL in 1986 primarily as a wiring harness manufacturer. The product portfolio of MSSL includes wiring harness, rear view mirrors, polyer modules & components,elastomer products and precision metal machined products. MSSL has numerous joint ventures and these joint ventures have witnessed significant investments in state-of-theart technologies and infrastructure over the years. MSSL has its manufacturing presence across Asia, Europe, North America, South America, Australia and Africa. In 1993, MSSL was listed on the stock exchanges in India. Over the last 30 years, MSSL has successfully added value and created wealth for its shareholders, with endeavour to give good returns against the investments and valuing the trust they have placed in it. SAMVARDHANA MOTHERSON AUTOMOTIVE SYSTEMS GROUP B.V. SMRP BV Samvardhana Motherson Automotive Systems Group BV (SMRPBV) is a joint venture between Samvardhana Motherson International Limited (SMIL), and Motherson Sumi Systems Limited (MSSL) through thier subsidiaries. SMRPBV operations include supplies to global automotive industry as Tier 1 supplier through its subsidiaries Samvardhana Motherson Reflectec (SMR) and Samvardhana Motherson Peguform (SMP). The company has global leadership. One in every four passenger cars has SMRP BV s product. The SMRBV s strategy is to retain and strengthen technological leadership through continued focus on R&D and innovation. It would also continue its global expansion through selected investments backed by new orders. The company aims to increase customer penetration and diversification by further driving efficiency and continues to work towards improved cost savings and cash generation. 22 Annual Report

25 Growing with Customer Trust Our customers trust has given us opportunities to grow and attain leadership positions in the businesses we operate GLOBALLY Exterior rearview mirrors IN EUROPE Exterior rearview mirrors IP modules, door trims and bumpers Wiring harnesses for 2- wheelers, earthmoving and material handling equipment IN INDIA Wiring harnesses for passenger cars Rearview mirrors for passenger cars Moulded components and modules Plastic air intake manifolds Cabins for large size dump trucks Gear cutting tools CBN & PCD cutting tools Samvardhana Motherson International limited 23

26 Group Business Portfolio. 01 Wiring harnesses. 02 Rear view mirrors. A vertically integrated maker of wiring harnesses for passenger, commercial and off-road vehicles as well as for other industrial applications. One of the world s major producers of interior and exterior rear view mirrors and camera based detection systems supplying to all major OEMs. 03 Polymers 04 Elastomers. The Group is one of the most vertically integrated Tier 1 makers of interior and exterior modules and polymer parts, supplying to global automotive industry. Provider of a wide range of elastomer solutions for a spectrum of industries including automotive, medical, home appliances and general industrial applications. 05 Modules. 06 Metal working. Provides an extensive range of higher level assemblies, modules and integrated systems for a range of application in automotive and other industries. Provider of cutting tools, bimetal band saw blades, gear cutting tools, thin film coating tools and sintered metal parts along with precision metal machined components. 07 IT, Engineering and design. 08 Manufacturing Support IT, engineering and design supports IT needs of all businesses and all product development within our verticals including product design, validation, prototyping, CAE services, tool design and design of jigs. Creating a wide range of manufacturing support solutions, such as air compressors, s, paint coating equipment, auxiliary equipment for injection moulding machines and automotive manufacturing engineering. 24 Annual Report

27 01 Wiring Harness The wiring harness division WHD of SMIL is managed through a number of subsidiaries and joint ventures of its flagship company, Motherson Sumi Systems Limited (MSSL). The company is a full service system supplier to the automotive industry with complete inhouse design and development capability. MSSL WHD along with its JV s & subsidiaries has manufacturing locations in India, UAE (Sharjah), U. K., Mexico, Thailand, USA and Sri Lanka. It also has representative offices in Germany, USA, Italy and Singapore for customer support and strategic sourcing, as well as design and development centres in India, Japan, Ireland and Italy. MSSL WHD manufactures wiring harnesses for the entire cross-section of the automotive industry from passenger cars to commercial vehicles, motorcycles and three-wheelers, multi-utility vehicles, farm and material-handling equipment and off-highway vehicles. It also manufactures specialised wiring harnesses for consumer durables, office automation equipment, medical diagnostic equipment and other electrical and electronic equipment. 02 Rear View Mirrors Samvardhana Motherson Reflectec Samvardhana Motherson Reflectec (SMR) is a leading global tier 1 supplier of automotive rearview mirrors to the automotive industry. SMR develops and produces exterior & interior mirrors for passenger cars, commercial vehicles and heavy trucks and is an expert for camera based sensing system in the automotive industry. SMR s global customer base includes all major car makers in North America, South America, Europe, Asia and Australia. As a rearview mirror specialist SMR develops solutions for all categories of mirror applications from basic manually adjusted to electric control and high-value rear view vision systems with multiple integrated features. The company has manufacturing facilities spread across 14 countries (Australia, Brazil, China, France, Hungary, India, Mexico, South Korea, Spain, Thailand, United Kingdom, USA, Japan and Germany) Samvardhana Motherson International limited 25

28 03 Polymer Processing The polymer vertical of SMIL specializes in developing and manufacturing a wide range of plastic products and integrated modules for both vehicle exteriors as well as interiors. Through this vertical, SMIL has attained the status of a global Tier I supplier to all the leading automobile OEMs for polymer components and modules. The range of polymer products include plastic components and modules for vehicle interiors, such as cockpit modules, door trim modules, centre consoles and pillar trims, as well as vehicle exteriors, such as bumper modules and front end modules. This division also produces high precision components, aesthetic and assembled parts. SMIL offers tailored solutions for manufacturing plastic parts as per the diverse requirements of the customers. The polymer vertical companies of SMIL also manufactures resin moulded parts like interior trims, cowl grilles, engine covers etc. it also has special facilities for manufacturing thermo (vacuum) formed polyethylene components and blow moulded components like wheel arch flares, inner fender liners, shrouds, consoles, under covers etc. These companies also specialises in thermoplastic compounding. The product range includes polymer compounding in polyolefin and styrene. SMIL produces products for multiple market segments, providing solutions such as cost optimized moulding technologies, high quality leather surfaces, real stitching in polymer surfaces, soft painted and metalised surfaces. The expertise in multiple polymer processing technologies gives SMIL the optimal foundation to develop numerous innovative solutions to substitute metal with lighter, cost effective and environment friendly polymer in the automotive industry. Polymer processing operations cover a wide range of polymer processing technologies. It requires amalgamation of different technologies, which the SMIL provides through its various joint ventures and collaborations with global leaders in this field. The facilities include over 1500 state-of-the-art injection moulding machines ranging from 5 tons to 4500 tons to manufacture high precision components and high aesthetic parts. The moulding operations are augmented by comprehensive post moulding processes, thus providing a single source solution to diverse polymer processing requirements of the customers. It enables SMIL to provide Full System Solutions in the form of highly integrated modules. The biggest company of the this vertical is Samvardhana Motherson Peguform (SMP) which is a pre-eminent player of the industry. 26 Annual Report

29 Samvardhana Motherson Peguform (SMP) Samvardhana Motherson Peguform (SMP) was created through the acquisition of former Peguform Group jointly by SMIL and MSSL in SMP is an established global tier 1 manufacturer of polymer-based automotive global modules specialising in high quality interior and exterior products for the automotive industry. With focus on the development of highly attractive and multifunctional interiors, SMP is an international partner for high quality instrument panels and interior door panels. SMP is one of the largest manufacturers of bumpers, rocker panels, instrument panels, interior door panels and other related products for the European automotive industry. With numerous patented technologies and industry- first innovations in all product lines, it is one of the most preferred suppliers for car makers in Europe as well as to their facilities in China, Brazil and Mexico. The company is headquartered in Germany, with a global presence. 04 Elastomer Processing SMIL provides a wide range of solutions in elastomer processing ranging from rubber compounding to injection moulded rubber parts, bonded parts, moulded liquid silicon parts and extruded rubber components for a spectrum of industries including automotive, medical, home appliances and general industrial applications. The facilities are spread over India and Australia. Rubber injection moulding product range includes grommets, boots, bellows, gaskets, seals, water strike back valves, damper rings, nozzles, rubber to plastic & rubber to metal products etc., for automotive & industrial applications. Liquid silicon rubber injection moulding facilities manufacture components for an extensive range of applications including automotive application, kitchen appliances and measuring & control technology and medical equipment. Compression moulded rubber components & extruded rubber product range includes extruded rubber components, weather strips, glass runs, boot & hood seals, tank straps, rubber flares, bonded components, suspension bushes, engine & transmission mounts, bump stops, large engine gaskets, auto suspension components, moulded rubber brake components for automotive, non automotive & industrial applications. Samvardhana Motherson International limited 27

30 05 Modules SMIL is present across various levels of the automotive component value chain, providing products and services that range from product design and prototyping to tool manufacturing, assembly and the production of integrated modules. The company provides an extensive range of higher level assemblies, modules and integrated systems for a range of applications in automotive and other industries. The Group has a focused approach towards developing modules and systems to provide integrated solutions to its customers. SMIL develops and manufactures these modules to cater to the varied and diversified requirements of its customers. Specialized ventures for systems and modules are in the area of: Cabins for Off-highway Vehicles Lighting Systems, Air Intake Manifolds & Pedal Assemblies & Shock Absorbers HVAC Systems for passenger vehicle HVAC Systems for commercial vehicle Bus AC & Roof Hatches Environment Management Systems For all these products SMIL has collaborated with technology leaders in respective fields. SMIL depends on its joint venture partners to gain access to technological innovations in the respective product category. The company continuously introduces new technologies and solutions to serve customers in diverse industry segments. The joint venture partners for this vertical are spread across USA, Japan, Australia, Germany and Italy. The total manufacturing facilities that SMIL has for modules is 14, spread across India. 28 Annual Report

31 Fritzmeier Motherson Cabin Engineering Pvt. Ltd. (FMCEL) Fritzmeier Motherson Cabin Engineering Ltd. (FMCEL) is a joint venture between Samvardhana Motherson International Limited (SMIL), India and Fritzmeier Group, Germany. FMCEL specializes in producing operator cabins for off-highway machines like heavy duty dump-trucks, excavators, dozers, back hoe loaders, wheel loaders & agricultural tractor cabins. FMCEL provides total solutions to customers right from concept - design to fully loaded cab, ready to drop on to the machine. Steel & aluminium special profiles used are unique about FMCEL cabin manufacturing technology. Apart from cabin manufacturing FMCEL also supplies lite-fabrication parts used in construction equipment business in India & SAARC region. Magne Marelli Motherson Auto System Pvt. Ltd. (MMM) Magneti Marelli Motherson Auto System Ltd. (MMM) is a joint venture between Samvardhana Motherson International Limited (SMIL), India and Magneti Marelli, Italy which is a leading company in designing and production of systems and components for the automotive sector. The manufacturing units of MMM are located in Pune, Sanand and Manesar in India. The company has in-house design capability for the above products along with the manufacturing capabilities including plastic injection moulding, surface coating, metalising, welding, testing & assembly, in house photometry lab etc. The product range of the company includes automotive lighting products, integrated plastic air intake manifold assembly & pedal brake accelerator module. Magne Marelli Motherson Shock Absorbers India Pvt. Ltd. (MMSA) Magneti Marelli Motherson Shock Absorbers India Pvt Ltd.( MMSA) is a joint venture between Samvardhana Motherson International Ltd. (SMIL), India and Magneti Marelli Spa, Italy. The product range of the company includes strut & strut assembly, shock absorber, gas spring and steering damper. The company has technological solutions like the full displacement valve, the frequency dependent dual stage and the digressive curve valving, aimed at reaching high level performances in terms of comfort and NVH (Noise, Vibration and Harshness). Samvardhana Motherson International limited 29

32 Modules Calsonic Kansei Motherson Auto Products Pvt. Ltd. (CKM) Calsonic Kansei Motherson Auto Products Ltd. (CKM) is a joint venture between MSSL and Calsonic Kansei Corporation, Japan. CKM has plants in Manesar, Bawal & Chennai in India. The product range of CKM includes HVAC systems, AC compressor, auto & manual control for HVAC, ECM (Radiator with engine cooling fan), evaporators, condensers, charged air coolers, degassing tank, exhaust system (from hot end to cold end), BCM (Body Control Module), ACU (Air Bag Control Unit), instrument cluster, CPM (Cockpit Module) and FEM (Front End Module). Motherson Bergstrom HVAC Solu ons Pvt. Ltd. (MBSL) Motherson Bergstrom HVAC Solutions Pvt. Ltd. (MBSL) is joint venture between Samvardhana Motherson International Limited (SMIL), India and Bergstrom, Inc., USA. The company provides services including manufacturing, assembling, marketing and selling of complete HVAC Systems and components for off highway and commercial vehicles. Key segments served include agricultural and construction sectors, medium and heavy duty trucks, as well as other specialised heavy-duty vehicles and mining equipment in India and the countries included in SAARC. MBSL has its manufacturing unit in Noida, India Spheros Motherson Thermal System Ltd. (SMTL) Spheros Motherson Thermal System Ltd. (SMTL) is a joint venture between Samvardhana Motherson International Limited (SMIL), India and Spheros GmbH, Germany one of the world s leading manufacturers of air conditioners, heaters and roof hatches for buses. It partners with all the prominent bus manufacturers in design & development of innovative temperature control systems. SMTL manufactures HVAC systems for commercial vehicles, cabin air conditioning, heating systems, ventilation for buses, emergency exit hatches, special purpose hatches and exhaust fans and engine pre-heaters and also undertakes sales & service of Spheros products in the SAARC region. SMTL has its manufacturing facility in Noida, India. Global Environment Management (GEM) Global Environment Management (GEM) is a joint ventue between Samvardhana Motherson International Limited (SMIL), India and Ecompost, Australia. With its unique patented areation technology the Aerobin composting bin offers passive, environment friendly and superior performance as a consequence of the patented features that are unique to the Aerobin. It is the first environment product that GEM has launched into the market, keeping an eye on consumer market of retail & web sales. The Aerobin is available in the UK, Finland, Greece, Canada, Ecuador, Japan and Australia. 30 Annual Report

33 06 Metal Working SMIL has expertise in providing complete solutions in metal working right from manufacturing and marketing a wide range of standard and customised cutting tools to machining of high precision metal components. The Group also provides advanced thin film coating services. By acquiring technologies from global technology leaders and coupling them with in-house design and development expertise, SMIL is capable of providing highly customised cutting solutions. By expanding its range in the metal machining services, SMIL has become an integrated solution provider in metal cutting. SMIL is expanding its metal working vertical, to provide a wide range of cutting tools, broaches and hobs, precision metal machining and film coating to these customers. SMIL undertakes metal working and the manufacture of various forms of cutting tools, including Cubic Boron Nitride (CNC) and Polycrystalline Diamond (PD) cutting tools and drills, high precision machined metal components and assemblies, heat-sinks and subassemblies, bimetal band saw blades, manufacturing and re-sharpening of broaches, manufacturing and regrinding of forming racks, high speed steel gear cutting tools and advanced thin film coating services. The various ventures in metal working include: Cutting Tools Gear Cutting Tools Forming Racks Bimetal Bandsaw Blades Sintered Metal Parts Precision Machined Parts Thin Film Coating Metals Motherson Techno Tools Ltd. (MTTL) MTTL is a joint venture between Samvardhana Motherson International Limited (SMIL), India and Sumitomo Electric Hardmetal Corp, Japan. The company has its manufacturing facility located in Noida, India. The standard and customized cutting tools are produced in advance cutting tool material like Carbide, Poly Crystalline Diamond (PCD) and Cubic Boron Nitride (CBN). The industry specific machining solutions are provided for automotive engine, transmission and components; die and mould; energy components like blade, nozzle, casing and rotor; aerospace frames and engine parts. The cutting tools are available for various applications like turning, parting, grooving, threading, milling, drilling and hole finishing. MTTL represents Sumitomo Electric Hardmetal Corp. for cutting tools; Big Daishowa Seiki Co. for precision holding tools and accessories; Heule Werkzeug AG for back and front hole processing tools. Samvardhana Motherson International limited 31

34 Motherson Advanced Tooling Solu ons Limited (MATS) Motherson Advanced Tooling Solutions Limited is a part of the metal division of Samvardhana Motherson International Limited (SMIL). MATS was formed after the acquisition of Dagger Forst in Manufacturing units of MATS are located in Noida and Aurangabad in India. The product range of MATS includes broaches, hobs, shaving cutters, shaper cutters, master gears, spline, gauges, spline mandrels and broach sharpening machines. The company specializes in manufacturing high quality broaches and HSS gear cutting tools for a wide spectrum of industry segments including automobile industry, power sector, defense & other engineering industries. Nachi Motherson Tool Technology Ltd. (NMTTL) Nachi Motherson Tool Technology Ltd. (NMTTL), a joint venture between Samvardhana Motherson International Limited (SMIL) and Nachi Fujikoshi Corporation, Japan. The manufacturing unit of NMTTL is located in Noida, India. NMTTL manufactures an extensive range of bi-metal band-saw blades and markets the same through a wide dealer network across the country. NMTTL provides a full line up of bi-metal band saw blades that handle customer requirements with high speed and high quality cutting. Nissin Advanced Coa ng Indo Co. Pvt. Ltd. (NACIL) Nissin Advanced Coating Indo Co. Ltd. (NACIL) is a joint venture between Samvardhana Motherson International Limited (SMIL) and Nissin Electric Co. Ltd., Japan. The company is located in Noida, India.NACIL provides advanced thin film coating services for tools, dies & parts. Types of coatings offered include TIN / TiCN / TiAlN/ CrN / DLC etc. Application areas vary from cutting tools, moulds, automobile parts, machine parts, resin moulds, water parts etc. Motherson Sintermetal Technology Ltd. (MSTL) Motherson Sintermetal Technology Ltd. is a joint venture between Samvardhana Motherson International Ltd. (SMIL) and Sintermetal with manufacturing facility at Rippollet, near Barcelona, Spain. A new facility is starting in India at Puducherry. It produces powder-metal sintered parts for the automotive industry. The company has a well-established clientele in Europe with supplies to many OE and Tier-1 manufacturers. The product range of the company includes shock absorber components, power train parts, oil & water pump components & structural parts. 32 Annual Report

35 Nachi Motherson Precision Pvt. Ltd. (NMPL) Nachi Motherson Precision Limited (NMPL) is a joint venture between Samvardhana Motherson International Limited (SMIL) and Nachi Fujikoshi Corp., Japan. The manufacturing facility is located at Manesar, India. NMPL manufactures forming racks (splines & thread) and provides regrinding services for forming racks (spline & thread) and re-sharpening of broaches (round, surface, key-way). The company imports NACHI range of broaches (round, surface, key-way), gear cutting tools (hobs, shaving cutters, pinion cutters, rolling dies) and round tools (drills, taps, endmills). NMPL also imports NACHI broaching machines, roll forming machines, crankshaft oil hole drilling machines and provides after- sales service for NACHI machinery. Motherson Machinery and Automa ons Ltd.(MMAL) Motherson Machinery and Automations Limited (MMAL) is a subsidiary of SMIL, located in Noida, India. The company is an industrial trading company with focus on machine tools, hydraulics and metrology products. The product range includes: Machine Tools (Gear Manufacturing Machines; Swiss Turn Lathes; Grinding Machines: Surface Grinding, Double Disc Grinding, Centreless Grinding; Die & Mould Machines: EDM, WEDM, EDM Drill, Profile Grinding, Deep Hole Drilling Machines), Hydraulics (Index Motors, Obmark Motors, Magnetic Separators, Lubrication Pumps, Transfer Pumps, Coolant Pumps), Tooling Fixtures, Metrology (Gear Measuring Systems, In-line production Inspection System, Scanning & Digitising System, Blade Inspection Systems, Standalone High-Speed Inspection CMM) Motherson Innova ve Engineering Solu ons (MINES) Motherson Innovative Engineering Solutions (MINES) is the metal division of Motherson Sumi Systems Limited (MSSL) and is located in Bengaluru, India. MINES undertakes contract manufacturing of high precision machined metal components and assemblies. It manufactures products for a wide range of applications including computers, test & measuring equipment, scientific equipment, machinery parts, valve body parts, hydraulic cylinder parts, drive motion parts, cooling system - heat sinks and other precision applications. Motherson Orca Precision Technology GmbH (MOPT) Motherson Orca Precision Technology GmbH (MOPT), located in Donaueschingen, Germany, is a joint venture held through Motherson Sumi Systems Ltd.(MSSL), India and ORCA Cutting Group. The company specialises in metal turning & plastic-metal combined parts. The product range of MOPT includes high precision turned parts for fuel pumps, fuel injection systems, emission controls, break systems and pressure sensors, as well as different kinds of assemblies and individual steps like grinding, turning, rounding, milling and coating. Samvardhana Motherson International limited 33

36 07 IT, Engineering & Design SMIL provides end-to-end IT services along with Engineering & Designs (E&D) solutions to help clients leverage leading-edge technologies for business efficiency improvement. This vertical was formed in collaboration with Sumitomo Wiring Systems (Japan). SMIL uses its core expertise in technologies to provide solutions to business challenges. Based on a match between the client s business needs and its core competencies, SMIL provides service excellence to its clients. To help businesses compete and sustain cost pressures, SMIL has developed optimized supply chain integrated solutions that directly contribute to improving the bottom-line by providing reliability, responsiveness and agility within an organization. Though this vertical, SMIL offers complete supply chain management solutions that feature performance monitoring capabilities by using various technological concepts of IOT(Internet of Things) and provides solutions for supply chain visibility, demand forecasting and inventory replenishment planning, sales and operations planning (S&OP), supply and inventory optimization (including barcode and RF based warehouse management systems), manufacturing planning and scheduling (including electronic pull systems), transportation planning and management, and Vendor Managed Inventory Systems. Design capability is one of the core strengths of the Group. A strong manufacturing background enables the Group to offer practical solutions designed for manufacturability. Design capabilities of SMIL encompass all the related manufacturing areas - wiring harnesses, connectors, terminals, moulded plastic components, injection moulding tools, rear vision systems and complete module designing. The company provides design solutions for the automotive, consumer durable, electrical, electronic and the office automation industries. IT Services and Engineering & Design services of SMIL are provided through its company MothersonSumi INfotech & Designs ltd (MIND). 34 Annual Report

37 IT Services MothersonSumi INfotech & Designs Ltd. (MIND) (MIND) provides IT services and solutions to customers worldwide in select industry verticals automotive, pharma, healthcare and travel. The company designs, develops, implements and supports integrated solutions for a global customer base. The services offered are IT Consulting, IT Infrastructure Services, Engineering Solutions and Enterprise Solutions The company has remained focused on delivering value to its customers by leveraging on the latest technologies in the IT horizon. MIND has invested in building expertise in Cloud, Mobile, Big Data and Analytics with a view to provide highly efficient and effective solutions to its customers. The company has introduced new service lines for Packaged Software Implementation and maintenance services for SAP (ERP System) and Teamcenter (Product Lifecycle Management System PLM) thereby increasing its capability to automate/service more and more of business operations of its customers. MIND has entered into advanced partnerships with leading technology companies such as Microsoft, Oracle, Infosim, HP, and Dell. MIND currently has its main software development and IT services facility located at Noida India. This facility also houses MIND s accredited data centre, which performs local and global hosting of applications as well as remote infrastructure management services. MIND operates a 24x7 helpdesk at this location, which supports its customers global network and applications. The IT operation of the Group have been assesed at SEI CMM Level 3. Engineering & Design Services The Engineering & Design Services wing of MIND forms the backbone of the entire organization. They are equipped with state of the art CAD/CAM/CAE software. SMIL offers end- to- end design solutions encompassing product design, prototyping, mould design, tooling & jig design and development, press die design and CAE services. MIND has also strengthened the prototyping business with key Indian OEMs and global customers and also started sheet metal prototyping activities. The company is focusing on leveraging its considerable experience in the automotive and manufacturing domain to develop solutions for Manufacturing Execution Systems (MES), Traceability Systems and Collaboration Systems. MIND has upgraded its Quality System by implementing the Capability Maturity Model Integration (CMMI) framework from CMMI Institute, formerly known as SEI (Software Engineering Institute) of Carnegie Mellon University, Pittsburgh USA, which is a collection of the latest set of best practices in software engineering. Samvardhana Motherson International limited 35

38 08 Manufacturing Support SMIL has a philosophy of serving its customers with value added products and services and providing a higher level of support to other Group companies that goes beyond components and modules. The company also provides products and services that directly support manufacturing operations of its customers. These products and services are provided by the Group through its various joint ventures with leaders in their respective fields. This vertical enables the Group to provide end-to-end solutions and be involved with the customers at various stages of manufacturing of their final product. SMG manufactures several products that support manufacturing functions in the automotive and other industries. These include: Paint Coating Equipment Air Compressors Automotive Manufacturing Engineering Services Auxiliary Equipment for Injection Moulding Machines 36 Annual Report

39 Matsui Technologies India Ltd. (MTIL) Matsui Technologies India Ltd. (MTIL) is a joint venture between Samvardhana Motherson International Limited (SMIL), India and Matsui Manufacturing Company Ltd., Japan. MTIL operations are based in India at Noida. Matsui Technologies India is undertaking marketing, installation and servicing of Matsui products in India, SAARC region and Middle East. The product range includes mould temperature controller, granulator, dehumidifying dryer, jet loader, hopper dryer, chiller, blender, cooling towers etc. AES (India) Engineering Ltd. (AES) AES (India) Engineering Ltd. is a joint venture between Samvardhana Motherson International Limited (SMIL), India and Automotive Engineering Services Co. Ltd., Japan (AES). The company provides services including manufacturing engineering, consultation, project management and turnkey supplies to the automotive industry. The areas of shop coverage for AES includes press/dies, body paint and assembly shop in vehicle assembly plant, engine/transmission machining and assembly line in power train manufacturing plant. The range of services includes simultaneous engineering, conceptual planning, basic engineering, basic design for new-line/ line-modification in green/brown field, logistics planning, procurement of machinery & equipment, installation of equipment, launching support, quality build up activities, coaching of manufacturing staff/operators, continuous improvement kaizen (covering parts) programme management & digital engineering. Anest Iwata Motherson Ltd. (AIM) Anest Iwata Motherson Limited (AIM) is a joint venture between Samvardhana Motherson International Limited (SMIL), India and Anest Iwata Corp., Japan, a world leader in industrial air compressors and paint coating systems. AIM is based in Noida, India. AIM manufactures and sells Anest Iwata brand industrial air compressors in India. AIM also manufacturers customised air compressors to specific customer requirements. It is also marketing in India the world s first oil free type scroll air compressor from Anest Iwata. AIM has an extensive sales, spares and service network all over India with dealers/ distributors and service centres in all major cities in India. Anest Iwata Motherson Coating Equipment Ltd. Anest Iwata Motherson Coa ng Equipment Ltd. (AIMC) Anest Iwata Motherson Coating Equipment Limited (AIMC) is a joint venture between Samvardhana Motherson International Limited (SMIL), India and Anest Iwata Corp., Japan. AIMC is based in Noida, India. The product range for India includes the Anest Iwata inventions - low volume low pressure (LVLP) spray guns & high technology paint feed diaphragm pumps along with paint solvent based guns (manual & auto), water based guns, diaphragm pumps, paint tanks, paint circulation systems, pressure tanks, hoses, connectors, paint pressure regulator, paint kitchen and SUS tubing etc. Product specialty is compact, lightweight, medium and low air pressure operating manual & automatic spray guns, equipment & systems that help in both general and niche applications. Samvardhana Motherson International limited 37