Motherson Sumi rallies on order win from Daimler

MUMBAI: Shares of Motherson Sumi rallied as much as 7.54 per cent in early trade as its subsidiary bagged ever order from German car-maker Daimler.

The stock ended the day at Rs 479.55, up 3.35 per cent or Rs 15.55.

"Samvardhana Motherson Automotive Systems Group BV has received a significant set of orders for the supply of a range of exterior and interior systems for several future Mercedes-Benz vehicle generations," the company said in a filing to stock exchanges.

Motherson Sumi estimates these orders to generate sales revenues of approximately Rs 15,400 crores (Euro 2.2 billion approx.) over its lifetime and expected to commence from calendar year 2018.

To support Daimler’s expansion activities, MSSL will invest in 2 new plants, one each in the USA and Hungary which will enable Samvardhana Motherson to be closer to Daimler’s vehicle assembly plants, along with capacity expansion in existing plants in Germany as well as new machines, tools and product development efforts.