Motherson Sumi enters aerospace; Acquires majority stake in CIM Tools
Motherson Sumi Systems Limited (MSSL) as of late introduced the purchase of majority stake in CIM Tools Pvt Ltd, probably the most main providers in the aerospace provide chain based totally in Bengaluru, India.
This milestone acquisition will mark MSSL’s foray into the aerospace business.
MSSL will achieve 55% stake from the promoters of CIM Tools Private Limited (CIM). CIM in flip will dangle an 83 in keeping with cent stake in Aero Treatment Private Limited (ATPL) and recently holds a 49.99% stake in Locke CIM Aerospace (JV with Lauc International, LCA). The CIM, ATPL and LCA are hereinafter known as the “CIM Group”.
The 3 founders, Mr. Srikant GS, Mr. Umesh AS and Mr. Vishwanath Deshpande, will retain a forty five% stake in CIM and proceed to force additional expansion in partnership with MSSL.
CIM recently has a cumulative e-book trade attainable of Rs.15 billion+ (USD 200 million+). It reported proforma consolidated turnover of INR 2,031 Mn in FY20 and INR 1,296 Mn in FY21.
CIM is engaged in machining and subassembly of parts for the aerospace business. ATPL is a vertically built-in entity engaged in floor remedy of machined portions and LCA exhausting steel machining.
MSSL’s access into the aerospace phase is in line with its expansion solution to undertaking into non-automobile sectors as defined in its Five Year Plan, Vision 2025.
The transaction will supply MSSL get entry to to a lineage buyer base in the aerospace parts provide chain with specialised machining, remedy and sub-meeting functions. The proposed transaction is anticipated to near inside 3 months, matter to receipt of vital approvals.
Commenting at the deal, Mr. Vivek Chand Sehgal, Chairman, Motherson stated, “This acquisition is our first vital step against expansion in the aerospace trade. This is in line with our diversification technique and can lend a hand us improve our non-automobile trade. This shall be Motherson’s twenty seventh acquisition, and we will be able to proceed to paintings against including extra shoppers and merchandise whilst serving various industries globally.
Shrikant GS, Shri Umesh AS and Shri Vishwanath Deshpande- Promoters of CIM Tools Pvt. Ltd. stated, “We are overjoyed with the strategic partnership between CIM and Motherson. Both corporations are aligned in their trade goals, imaginative and prescient and philosophy. With Motherson’s backing and CIM Tools’ established credentials, we’re assured that we will supply our shoppers Will be capable of be offering a complete set of answers, thus including worth to all stakeholders.
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