Motherson's product exposure is not more than 15% in any country or commodity: Laksh Vaaman Sehgal, Director

Laksh Vaaman Sehgal, Director, Motherson Sumi Systems Limited, provides his outlook on the US class 8 trucks, ramping-up of the new plant at SMRPBV and expansion plans among others during a talk with Swati Khandelwal, Zee Business. Excerpts:

Q: What is your outlook on the US class 8 truck volume for the remaining half of FY20?

A: We just follow the news that is told by the OEMs as they know about it in the best possible manner. The platform into which we are is doing well till date, however, certain hiccups are there. Hopefully, something bad will not occur and things will rebound in the near future. 

Q: What's the update on the ramp-up of the new plant at your subsidiary SMRPBV?

A: All of our plants have gone into the production-mode. We have invested a lot in the last few years and have established several new plants the recent one is based in Hungary and the United States of America, which are in the ramp-up mode at present. But, we have faith that they will ramp up very well. We have learnt a lot from problems that prop-up at new plants especially in new areas and geographies like Alabama and soon we will be performing well there as well. 

Q: In the Indian market context, the UV market has substantially gone down in terms of volume. What is your exposure in the segment how it will impact your business?

A: Motherson's product portfolio exposure is not more than 15% in any customer or country or commodity. So, our strength is that we have diversified our business in a way that we are not dependent on any particular target market like UV, certain like trucks passenger cars. It has been diversified in a way that we always get growth opportunities. The periods in which volumes are down then we try our best to reduce our costs so that we reap maximum benefits when there is a revival in the market. 

Q: Your global presence is very strong but do you think that there are certain geographies where you want to expand your market?

A: We will definitely go to the place where our customer wants us to be. In fact, Motherson sets up a new factory only after winning an order instead of investing and establishing a factory at a place and then try to win the orders. We win orders and the customer's confidence first and then move ahead with the plan of establishing a plant. Thus, we will establish a plant wherever the customer asks us to do so. We have our presence in 41 countries at present and would grow further and will set up a factory wherever the customer wants. 

Q: What is your CapEx plan for the remaining part of FY20?

A: The numbers were publicly announced at the start of the year and I think we may fall short of it amid the ongoing market conditions. The CapEx that has been invested is enough to deal with the orders that we have in our hands at present.