Motherson Sumi Systems Ltd., India’s biggest auto parts maker, said it targets to more than triple revenue by 2020 and will achieve this growth through acquisitions.
The company, a joint venture with Japan’s Sumitomo Wiring Systems Ltd., aims to increase revenue to $18 billion from $5.5 billion in the year ended March, Motherson Sumi said in a stock exchange filing. It has also set a target to achieve 40 percent in return on capital employed, up from 26 percent in the latest fiscal period.
“We will pursue these targets through organic growth, as well as through customer-led acquisitions and the organic growth of these acquisitions,” Chairman Vivek Chaand Sehgal said in the statement.
The supplier of rear-view mirrors, bumpers and body panels to Porsche Automobil Holding SE and Volkswagen AG is adding capacity in China, Thailand, Mexico and Brazil. Last month Motherson Sumi said it won a parts-supply contract from Daimler AG that is estimated to generate revenue of about 154 billion rupees ($2.4 billion) and is expected to commence in 2018.
The company’s net income rose 12 percent to 3.4 billion rupees in the quarter ended March, better than analysts had estimated, according to data compiled by Bloomberg.
Shares of Motherson Sumi fell 4.8 percent, the biggest decline since Sept. 16, to close at 487.45 rupees in Mumbai trading. The drop pared the stock’s gain this year to 6.6 percent, compared with the 2.3 percent fall in the benchmark S&P BSE Sensex index.