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.
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% |
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% |
|
* 235 Million USD based on the exchange rate for 31st March 2005 # taking full turnover of joint ventures |
|
| Consolidated net sales | INR 10.29 billion**# |
| Sales from outside India | 29% |
| Largest customer | 27% |
| ROCE | 39% |
| Dividend Payout Ratio | 43% |
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%** |
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%** |
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% |
|
# 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 |
|
| 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%* |
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% |
