Aiming for $18-bn revenue by 2020 with rupee at 70/$: Vivek Chaand Sehgal, Motherson Sumi Systems

Motherson Sumi has indicated to its shareholders and analysts that it could be a $18-billion company by 2020. In a chat with ET Now, Vivek Chaand Sehgal, Chairman of Motherson Sumi Systems Limited, discusses the ‘Vision 2020’ statement outlined by its management. Excerpts:



ET Now: How will Motherson Sumi achieve this on such a large base?

Vivek Chaand Sehgal: Motherson is grateful to its team, from which it is getting a phenomenal response. Ever since the first five-year plan which came out in 1994-1995 going up to 1998-1999, we had declared four plans and successfully completed them.

These plans always follow a bottom-up approach and they come from our group companies. Each company individually talks to the customer and the customers give us a five-year horizon as to what kind of order they are going to give us.

In addition to this, we already have new orders. So, when you put everything together, the number that came out was approximately $18 billion. We have assumed rupee to be at about 70/$ for that. But the most important thing is that the ROCE has again been kept at 40%.

ET Now: You have also talked about setting up new facilities in new geographies. What regions have you earmarked for the same and at what stages could the planning of these new facilities be in?

Vivek Chaand Sehgal: We have kept away from the US in a very planned manner. The US is a very mature market. It needs a lot of focus and a tremendous amount of maturity on the part of the companies to operate over there.

But the next five-year plan is probably one of the biggest we have ever set up and it cannot happen without the US. All of us felt that we are very capable and we should be in a position to handle all the expectations from the US markets.

If you want to grow, then the US is the place for it. Almost 30-35% of our incremental orders will come from the US, 20-25% from Europe and 20-25% from China and India, hopefully. The balance will come from other parts of the world, such as South Africa, Brazil, Japan, etc. So I believe there is a tremendous amount of potential for a company like Motherson.