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Motherson Sumi Systems marks its entry into Aerospace

Motherson  Sumi  Systems  Limited  (MSSL)  marks  its  entry into  Aerospace;  acquires  majority  stake  in  CIM  Tools Private Limited 

Motherson Sumi Systems Limited (MSSL), today announced the acquisition of a majority stake in CIM Tools Private Limited, one of the leading suppliers in the aerospace supply chain,  based  in  Bengaluru, India. 

This milestone acquisition will mark MSSL’s entry into the aerospace industry. MSSL  will  acquire  55%  stake  from  the  promoters  of  CIM  Tools  Private  Limited (CIM).  CIM  in  turn  will  hold  83%  in  Aero  Treatment  Private  Limited  (ATPL)  and currently holds 49.99% in Lauak CIM Aerospace (JV with Lauak International, LCA). CIM, ATPL and LCA are hereinafter referred to as “CIM Group”.

The three founders, Mr Srikanth GS, Mr Umesh AS and Mr Vishwanath Deshpande, will retain 45% stake in CIM and will continue to drive further growth, in partnership with MSSL.  CIM  has  INR  15  Bn+  (USD  200  million+) cumulative  booked  business  potential currently. It reported a proforma consolidated turnover of INR 2,031 Mn in FY20 and INR 1,296 Mn in FY21. CIM is engaged in machining and sub-assembly of components for the aerospace industry. ATPL is a  vertically  integrated  unit  engaged  in  surface  treatment  of  machined  parts  and LCA is engaged in hard metal machining.         

MSSL’s entry into the aerospace segment is aligned with its growth strategy to venture into the non-automotive sectors as outlined in its five-year plan, Vision 2025.

The transaction will provide MSSL, access to a pedigreed customer base across the aerospace components supply chain along with specialised machining, treatment, and sub-assembly capabilities. The proposed transaction is expected to be closed within 3 months, subject to receipt of necessary approvals.

Vivek Chaand Sehgal, Chairman – Motherson

Commenting on the deal, Mr Vivek Chaand Sehgal, Chairman, Motherson said, “This acquisition is our first significant step towards growth in aerospace business. This is in line with our diversification strategy and will help us in strengthening our non-automotive business. This will be the 27th acquisition by Motherson, and we will continue  to  work  towards  adding  more  customers  and  products  while  serving diverse industries globally.”

Mr Srikanth G S, Mr Umesh A S and Mr Vishwanath Deshpande- The Promoters of  CIM  Tools  Pvt. Ltd. said: “We are delighted about the strategic  partnership between CIM  and  Motherson.  Both the companies are aligned in their business objectives, vision,  and  philosophies.  Together with the support of Motherson and established credentials of CIM Tools, we are confident that we will be able to offer a wider set of solutions to our customers, thus enhancing value for all stakeholders”.

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