Motherson Sumi Systems to invest Rs. 932 crore for capacity expansion.

Auto component major Motherson Sumi Systems Ltd. has lined up investments worth Rs. 932 crore for capacity expansion as well as building new facilities.

The money would come from internal accruals, company sources said.

Top company officials said as many as 14 new plants would be built as part of MSSL's aggressive expansion drive.

V C Sehgal, chairman, MSSL, said, 'We have received new orders worth euro 1.3 billion. Further, we are setting up 14 new plants funded from internal accruals to serve our customers. The prudent financial management of the company is demonstrated by self-sustaining and funding of Samvardhana Motherson Reflectec (SMR) and Samvardhana Motherson Peguform (SMP).'

Bonds proceeds have been utilized to prepay the loans at SMR and SMP making them 'self-sustained and self-financed.'

MSSL has been on an acquisition spree of late. It acquired the wiring harness business of Stoneridge for US$ 71.4 million or Rs. 441 crore.

It also acquired the shareholding from minority shareholders at SMP and SMR as well as the assets of Minda Schenk GmbH (in administration) in Germany.

The expansion drive is part of the company's strategy to scale up for big orders.

TOI