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Motherson Sumi plans restructuring for Visiocorp

Tuesday, 17 Mar 2009
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Auto component maker Motherson Sumi Systems (MSSL) intends to invest $80 million (approx Rs.400 crore) in its recently acquired rear-view mirror manufacturer Visiocorp over the next 12 months.

The planned investment is likely to be used in restructuring, tooling and for working capital requirements. Of the total, $50 million (approx Rs.250 crore) will be raised through debt while MSSL will invest $15 million (approx Rs.75 crore) and the balance $15 million (approx Rs.75 crore) will be invested by Motherson Sumi's JV partner, Samvardhana Motherson.

Motherson is also exploring the possibility of manufacturing few of its existing products, such as wire harness, at Visiocorp's facility in China to cater to the export markets.

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