Five-year plans
At Motherson, we like to commit to our five-year targets by communicating them through our annual reports of Motherson Sumi Systems Ltd. We’ve done so since the year 2000, and although top-line accomplishments will never be pursued at the expense of healthy bottom-line, we have managed to achieve mostly all of the targets of our five-year plans ever since.
2025 - 2030
No. 7
We will continue to build Motherson for the long term. The targets set are USD 108 billion in revenues with 40% ROCE. The company maintained its diversification strategy of 3CX10, meaning that exposure to any country, component, or customer should not be more than 10% of our total turnover by 2030.
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1. Gross Revenues refers to Gross amount of consideration which includes throughput revenue arising out of "Principal vs Agent Consideration" under Ind AS 115 added with Revenue from operations and 100% of Revenue from operations of joint ventures and associate which are accounted for as per the equity method under Ind AS 110. 2. Vision 2030 has been constructed using INR to USD conversions based on the average exchange rate for FY2025 (1 USD = 84.55 INR) and is to be treated as constant currency for tracking the five-year plan. 3. Group ROCE is earnings before interest and tax (EBIT) divided by average capital employed. EBIT and Capital Employed for Group ROCE includes 100% of EBIT and Capital employed from joint ventures and associates consolidated under equity method. Capital employed to be adjusted for impact of fair valuation and intangible assets created due to group wide reorganisation completed on March 31, 2022, and capital work in progress and intangible assets under development. 4. Diversification for 3CX is based on Economic Revenue which includes 100% of joint venture and associate companies consolidated under equity method. For geography wise segmentation, manufacturing locations to be considered except in certain cases of job works locations like Mexico and India. |
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| Gross revenues1,2 in 2029-30 | USD 108 billion |
| Group ROCE3 | 40% |
| Group diversification | 3CX104 |
| Consolidated profit as dividend | up to 40% |
2020 - 2025
No. 6
Strengthen our foundation and apply our existing competencies to serve customers in new industries. We will continue to build Motherson for the long term. The targets set are USD 36 billion revenues with 40% ROCE. 25% of revenues to come from new divisions that Motherson has entered into. The company has realigned its diversification strategy to 3CX10 meaning that exposure to any country, component or customer should not be more than 10% of our total turnover by 2025.
| * on consolidated basis | |
| Consolidated net sales with ROCE | USD 36 billion with 40% ROCE |
| Diversification | 3CX10 |
| New Divisions | 75% of revenues from automotive industry, 25% from new divisions |
| Dividend Payout Ratio* | 40% |
2015 - 2020
No. 5
Consolidating our position as a globally preferred solutions provider, by strengthening our global product offering. Focussed approach to product and market expansion helped Motherson move forward and achieve USD 8.9 billion consolidated net sales in FY 2019-20. The company expanded to 16 new countries and stayed true to its business philosophy of 3CX15. The largest customer contribution was 14% in 2020.
| * On consolidated basis | |
| Consolidated net sales | USD 18 billion |
| Diversification | 3CX15 |
| ROCE* | 40% |
| Dividend Payout Ratio* | 40% |
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# including revenues netted on implementation of Ind AS 115 wef 1.4.2018 *on consolidated basis ** on consolidated basis (excluding greenfield and acquisition) *** on Standalone basis |
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| Consolidated net sales | USD 8.9 billion# |
| Diversification | Largest Customer 13.9%, Contributing Country 21.9%, Component 25.3% |
| ROCE | 10%*, 24%**, 31%*** |
| Dividend Payout Ratio | 49%* |
2010 - 2015
No. 4
Providing full system solutions and expanding globally through large size acquisitions at the request of customers. Making MSSL a 5 billion dollar company, with presence in 26 countries, major targets were surpassed, making Motherson a truly global entity.
| * On consolidated basis | |
| Consolidated net sales | USD 5 billion |
| Sales from outside India | 70% |
| Geographical presence | 26-27 countries |
| ROCE* | 40% |
| Dividend Payout Ratio* | 40% |
| * On consolidated basis, ** On standalone basis | |
| Consolidated net sales | USD 5.5 billion |
| Sales from outside India | 85% |
| Geographical presence | 25 countries |
| ROCE | 26%* and 41%** |
| Dividend Payout Ratio* | 37%* and 62%** |
2005 - 2010
No. 3
Moving towards modules and developing a global support structure through midsize acquisitions. The target was to make MSSL a billion dollar company and further reduce dependence on any single customer.
| Consolidated net sales | USD 1 billion |
| Sales from outside India | 60% |
| Largest customer | < 20% |
| ROCE | 40% |
| Dividend Payout Ratio | 40% |
| *On consolidated basis, ** On standalone basis | |
| Consolidated net sales | USD 1.5 billion |
| Sales from outside India | 70% |
| Largest customer | 15% |
| ROCE | 22%* and 37%** |
| Dividend Payout Ratio | 32%* and 44%** |
2000 - 2005
No. 2
Charting our global footprint through small acquisitions and joint ventures. The targets reflected a transformational approach, aiming for a tenfold growth and de-risking of geographical and customer dependence. The ROCE (Return on Capital Employed) target of 40% and dividend policy of 40%, declared in this plan, have continued in every plan ever since.
| * 229 Million USD based on the exchange rate for 31st March 2000 | |
| Consolidated net sales | INR 10 billion* |
| Sales from outside India | 30% |
| Largest customer | < 25% |
| ROCE | 40% |
| Dividend Payout Ratio | 40% |
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* 235 Million USD based on the exchange rate for 31st March 2005 # taking full turnover of joint ventures |
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| Consolidated net sales | INR 10.29 billion**# |
| Sales from outside India | 29% |
| Largest customer | 27% |
| ROCE | 39% |
| Dividend Payout Ratio | 43% |
1995 - 2000
No. 1
Our first plan was about growth in India, through vertical integration and joint ventures for product additions. The target was to achieve a turnover of 1 billion INR in 5 years, which was ambitious for a small company at that time.
| * 28.7 Million USD based on the exchange rate for 30th November 1995 | |
| Consolidated net sales | INR 1 billion* |
| Sales from outside India | 1% |
| * 35.1 Million USD based on the exchange rate for 31st March 2000 | |
| Consolidated net sales | INR 1.53 billion** |
| Sales from outside India | 0.1% |
