Management Discussions And Analysis

Overview

MSSL has established itself as globally brferred solution provider to the automotive industry for interior and exterior modules, rear view vision systems and wiring harness. The Company has ? continuously improved its product portfolio by offering technical innovations in its product range and has maintained its leadership position in a highly complex technology driven industry. The Company is able to create value for its customers and improve operating performance with constant focus on "QCDDMSES" (Quality, Cost, Design & Development, Delivery, Management, Safety, Environment and Sustainability).

This has been a momentous year for MSSL as it completed its fourth Five Year Plan with truly imbrssive performance. The Company surpassed revenue target of US$ 5 billion set up in 2010 and achieved consolidated revenue of US$ 5.5 billion with imbrssive return on capital employed (ROCE) of 41% at standalone level and 26% at consolidated level (36% at consolidated level excluding acquisitions made post announcement of the Vision 2015) .

MSSL is continuously making strategic investment to expand its global footprint, product range and customer base. The Company's acquisition of wiring harness business in America and polymer business in Europe has further increased its footprints in these regions. The company targeted of having 70% of its customer base from outside India. The customer base of MSSL from outside India is 85% in 2014-15.

Highlights

The Company reports the highest ever revenues in 2014-15 both on consolidated as well on standalone basis.

Some of the major accomplishments during 2014-15 are as follows:

? The Company achieved its target of consolidated revenuesof US$ 5.5 billion for the year 2014-15, above its five year

? vision target of US$ 5 billion setup in 2010.

? The Company has achieved 26% return on capital employed (ROCE) at consolidated level with capital expenditure for new facilities and acquisitions. ROCE would be 36% if the businesses acquired after 2010-11 were to be excluded.

? Return on capital employed exceeded 40% for MSSL Standalone level for the first time.

? Consolidated sales up by 14%, standalone sales up by 10% and exports from India up by 6%.

? The Company succeeded in maintaining its operational ? Earnings Before Interest Tax and Debrciation (EBITDA) margin of 9.4% at consolidated level. EBITDA increased by 13% on consolidated basis.

? Driven by continuous operational improvement across all business units, consolidated operating margins for the Company improved and Profit Before Tax (PBT) has increased by 14% on consolidated basis.

? Profit After Tax (PAT) improved by 18% on consolidated level.

? Shareholding of Samvardhana Motherson Reflectec (SMR) reorganized under Samvardhana Motherson Automotive Systems Group B.V. (SMRP BV), Netherlands to integrate resources and leverage from strong customer relationship of SMR and SMP together. SMRP BV which is held 51% by the company and 49% by Samvardhana Motherson International Limited, becomes holding company for both SMR and SMP. In addition to this, SMRP BV further consolidated its shareholding in SMP to 100% and SMR to 98.5% by acquiring shareholding from the minority shareholders during the year.

Significant improvements at SMRP BV ( i.e. SMR and SMP ) :

• Samvardhana Motherson Reflectec (SMR) has delivered strong results, recorded substantial improvement in profitability along with highest ever annual sales of Rs.  98,887 million (Euro 1,276 million). SMR achieved 11% growth in EBITDA at Rs. 9,637 million (Euro 124 million), PBT by 11% at Rs.  6,594 million (Euro 85 million) and PAT by 17% at Rs.  2,533 million (Euro 33 million).

• Samvardhana Motherson Peguform (SMP) too achieved highest ever annual sales of Rs.  172,205 million ( Euro 2.2 billion) with substantial improvement in EBITDA by 26% at Rs.  10,637 million (Euro 137 million), PBT by 32% at Rs.  3,600 million (Euro 46 million) and PAT by 176% at Rs.  457 million (Euro 6 million).

Growth and improvement in performance of SMR and SMP has been achieved by taking a number of measures including operational improvements, enhanced relationship with the OEMs and servicing of new orders procured post acquisition.

• Samvardhana Motherson Automotive Systems Group BV, Netherlands (SMRP BV) acquired assets of Scherer & Trier group, Germany from its administrator through its step down subsidiaries. This has enhanced the Company's range of polymer products. This acquisition now known as SMIA (Samvardhana Motherson Innovative Auto systems) includes two manufacturing facilities situated at Michelau (Germany) and Puebla (Mexico).

MSSL continues to deliver progressive returns to the shareholders and has declared dividend of Rs.  3 per share. The total dividend outgo including tax thereon rebrsents healthy dividend payout ratio of 37% (Previous year 34%) of the consolidated profits after tax.

The Company purchased wiring harness business of Stoneridge Inc. with six manufacturing facilities and one engineering centre. It principally supplies to the commercial vehicles, agricultural equipment, material handling equipment and off-road vehicles. This acquisition strengthened the Company's brsence in North America.

During the year under review the Company has incurred significant capital expenditure of Rs.  18,390 million (on consolidated basis) to expand its footprint and to enhance existing capacities:

• SMRP BV expanded its manufacturing capacities and global footprints under both SMR and SMP business.

a. Mirror Division (SMR) added capacities and started commercial production from new facilities in Langfang (China), Chongqing (China), Marysville (USA) and France for actuator manufacturing and vertical integration. Further construction of new plants and expansion is in progress at USA, Mexico, India, Hungary and France.

b. SMP has incurred major capital expenditure on greenfield plants at Schierling-Germany, Zitlaltepec-Mexico, new paint line at Polinya-Spain, new plant at Michigan-USA, brownfield expansion at Botzingen-Germany, new paint line at Oldenburg-Germany, vertical integration expansion at France and greenfield plant at Beijing, China.

• MSSL Global RSA Module Engineering Limited, 100% subsidiary of the Company has set up a new plant in Durban (South Africa) for manufacturing of moulded parts like bumpers, instrument panels and door trims, the ramp up of commercial production and supplies started during the year

• MATE (a division of the Company) has set up a plant at Sanand (Gujarat, India) for manufacturing moulded components and integrated modules. MATE is also setting up a plant at Walajabad (Chennai India) for manufacturing moulded components. The plants will be operational during 2015-16.

• Wiring Harness Division expanded its manufacturing capacity at existing facilities in Noida and is also setting up plant at Walajabad (Chennai India), ramp up of these plants will be during 2015-16.

(Note: all the growth percentage stated above are in comparison with corresponding brvious year figures)

INDIAN VEHICLE & COMPONENT MARKET

Indian automotive industry is showing signs of revival with moderate growth in passenger vehicle and two wheeler segment after a challenging past year. During the year OEMs launched new models with additional functionalities and features to attract customers and create demand.

Long term outlook remains positive for the automotive industry with all major global players having base in India for manufacturing, global sourcing as well as engineering. Correction in fuel prices and lower finance cost should further add domestic growth in short term to medium term. Regular product launches planned by OEMs will keep customer excitement levels and create demand and is favorable for overall industry growth.

GLOBAL CAR PRODUCTION

The global production of passenger cars and commercial vehicles has increased by 2% in 2014-15. There is moderate growth in automotive production in Europe, North America and Asia excluding India in 2014-15 as compared to last year.

Segment performance - Automotive / Non Automotive

The Company brdominantly operates in manufacturing of automotive products and also manufactures non-automotive products. Hence the operations of the company have been classified as Automotive and Non-Automotive.

The Company's automotive segment is a supplier of Wiring Harness, High Tension Cords, Wire, Plastic Components, Rubber Components, Cockpit Assembly, Moulds for wiring harness components and moulded parts, Plastic Moulded Components, rocker panels, spoilers, scuff plates, mouldings, belt line mouldings, antenna hoods, air bag covers, decorative trim parts, injection-moulding, extrusion, stretch-bending, Brass Terminals, Thermo-Formed Products, Polyurethane Moulded Products, Blow Moulded Products, HVAC Module, Combrssors, Body Control Modules, Meters Clusters, Interior Mirrors, Exterior Mirrors, Bumper Systems, Plastic Components for vehicle exteriors, dashboards and vehicle interior trims. In automotive segment the company supplies to all the leading automobile manufacturers globally.

The Company's focus continuous to be automotive industry with its relationship to the customers who have encouraged the company for acquisition as well as new orders.

The contribution of automotive segment in the Company's revenue remains identical at 93% on standalone basis and on consolidated basis it has reduced from 98% in 2013-14 to 97% in 2014-15. The automotive segment has contributed to increase in sales - 14% on consolidated basis and 10% on standalone basis, compared to brvious year.

In non-automotive segment, MSSL is one of the largest suppliers of wiring harnesses to manufacturers of material handling equipments, off-road vehicles/construction equipment, agricultural equipment, industrial forklifts etc. The company offers variety of products like plastic components for white goods, household wires, plates, aerobin, re-timer light device, to its customers from individual parts to full system solutions.

The Non-automotive business witnessed significant increase in revenues driven by recent acquisition of wiring harness business in America which has brsence in non-automotive segments like agricultural equipment, material handling equipment and off-road vehicles.

Sales Performance

MSSL has achieved significant growth at both domestic and global front. The consolidated sales rose by 14% to Rs. 345 billion (equivalent to US$ 5.5 billion approx.) whereas standalone sales registered a growth of 10% at Rs. 49 billion.

The Company is continuously making strategic investment to expand its global footprint, product portfolio and to achieve business synergies through technological collaboration. MSSL's acquisitions are customer driver. All acquisitions are done at customers' behest.

MSSL has substantially expanded its customer base globally and further strengthened its affiliation with existing customers. The Company has brsence in 25 countries and conducts its operations from over 145 manufacturing facilities supported by technical centers located globally.

The company's sales to customers in India grew by 11% on consolidated basis and 11% on standalone basis.

MSSL has established itself as a brferred supplier among OEMs with its commitment to keep improving on QCDDMSES (quality, cost, delivery, development, management, safety, environment and sustainability.). The ability to provide end to end solutions, supported by global manufacturing capabilities and competitive footprint to core expertise in all aspects of design, research, engineering and development has been the driving force behind the growth of the Company.

FINANCIAL REVIEW

MSSL continues it track record of outperforming the market and delivering strong growth in revenues and profitability. The consolidated financial performance is imbrssive in terms of profitability with strong growth in profitability of SMRP BV.

During the year, the Company incurred capital expenditure amounted to Rs. 18,390 million (Previous Year Rs. 13,517 million), which was funded from internal accruals. The company's net debt was down to Rs. 32,387 million from Rs.39,336 million as on March 31, 2014. This is the lowest level of debt since acquisition of Peguform in November 2011.

During the year the company's subsidiary SMRP BV issued 7 year Bonds of Euro 500 million carrying coupon rate of 4.125% to refinance its debts as well as fund its capital expenditure. This borrowing has not only provided long term financing to SMR and SMP (without corporate guarantee from the parent) but has also helped to reduce their cost of borrowings. Further this increased the maturity profile of the debt of SMRP BV there by enabling it to use its internal accruals for meeting growth capex to serve new orders. The Company monitors its net working capital regularly and able to maintain it adequately even with the increasing scale of operations. In terms of days, net working capital employed as on March 31, 2015 was 25 days (24 days as on March 31, 2014).

The Company's cash and bank balance of Rs. 18,919 million included cash and bank balance at SMRP BV for meeting capital expenditure requirements.

During the year under review, the Company's consolidated sales hit a new record level of Rs.344,903 million in comparison to the brvious year sales of Rs. 303,580 million.

The major raw materials required by Polymer Division of the Company are polypropylenes, polycarbonates, ABS and various grades of nylons and resins. Finished products incorporate decorative (leather, textile and foils), chrome, fasteners, wiring harnesses, electronics, electrical parts, die-casting, plastic and metal parts. The major raw material used in the manufacture of tools and moulds is alloy steel.

The main inputs for the company's mirror business are glass actuators, power folds, glass, electro-chromatic glass ("EC glass"), wiring harnesses, electronics, electrical parts, die casting, plastic parts and resins. The key raw material for the company's wiring harness business is copper.

Employee cost on aggregate comprises the second largest cost after raw material. It includes salaries & wages, contribution to provident fund, gratuity, employee pension schemes and expenses incurred on staff welfare. Employee costs have increased by 25% in 2014-15, which is 18% of total revenue (Previous year 17%). The increase in employee cost is mainly due to capacity expansion.

Profit before Interest Debrciation and Tax (PBIDT) increased by 13% at Rs. 32,348 million from Rs. 28,678 million during 2014-15. The Company has reported strong profitability on account of significant improvements at SMR and SMP.

Profit before Tax (PBT) substantially increased by 14% at Rs. 18,171 million from Rs. 15,960 million during brvious year. Profit after Tax (PAT) concern share significantly improved by 13% at Rs. 8,625 million as against Rs. 7,650 million during the brvious year.

During the year, the Company incurred exchange fluctuation loss of Rs. 321 million on account of long term loans including mark to the market (Previous year exchange loss of Rs. 1,777 million).

During the year, the company incurred exceptional expenditure of Rs. 1,648 million in connection with issue of 41/8% senior secured notes and acquisition cost in respect of wiring harness business.

During the year, the company incurred capital expenditure of Rs.2,028 million on setting up of new facilities at Sanand (Gujarat, India) as well as for expansion / normal capital expenditure at other locations.

The company's net debt is significantly lower at Rs 3,875 million compared to Rs 7,387 million as on March 31, 2014.

PBIDT registered growth of 1%, increased to Rs 9,338 million from Rs 9,285 million during brvious year.

PBT amounted to Rs 7,238 million in comparison with Rs 7,584 million during the brvious year mainly on account of higher dividend income from subsidiaries during brvious year and higher debrciation due to revision in useful life of asset as per new Companies Act 2013 in current year.

CASH FLOW

The company's cash flow from operating activities during the year was higher at Rs.40,064 million compared to Rs. 32,547 million.

The increase is primarily due to higher earnings, improved profitability and focus on improvements in working capital management.

Cash Flow from other investing activities include consideration of Rs. 7,110 million paid for acquiring wiring harness business of Stoneridge Inc. and business of Schier & Trier (in administration) as well as Rs. 3,328 million paid for acquiring shareholding from minority at SMP and SMR.

The improved level of cash generation has supported delivery of strong returns to shareholders.

CAPITAL EXPENDITURE

During the year, the Company incurred Rs. 18,390 million and Rs 2,028 million on account of capital expenditure at consolidated and standalone level respectively. Major portion of this expenditure has been financed through internal sources. The Company allocated significant amount during past years in enhancing its capacity at Germany, USA, China, Thailand, South Africa, Mexico, India and Spain. The Company's motive is to focus on utilizing global capabilities in order to achieve new heights in terms of growth with optimal capital outlay. The capital expenditure is expected to be in the range of Rs.15 billion to Rs. 20 billion during 2015-16, the details of which are described in various sections.

PERFORMANCE OF COMPANIES

The financial performance and brief of the Company's subsidiaries is as follows:

Samvardhana Motherson Automotive System Group B.V (SMRP BV), Netherlands

(Consolidated with its Subsidiaries & Joint Venture)

Introduction: SMRP BV is joint venture between the Company and Samvardhana Motherson International Limited. The Company holds 51% of the share holding in SMRP BV through its step down subsidiaries. SMRP BV together with it's subsidiaries ("SMRP BV Group") are a leading global Tier 1 supplier of rear view vision systems and interior & exterior modules (including door panels, instrument panels and bumpers) to automotive original equipment manufacturers ("OEMs") primarily for use in the production of light vehicles. SMRP BV Group has brsence in every major global automotive production region, with 45 production facilities and 11 module centers sbrad across 16 countries and strategically located in close proximity to the manufacturing plants of the OEM customers.

During the year the Company acquired assets of Scherer & Trier group (S&T), Germany from its administrator through its step down subsidiaries, now renamed as SMIA (Samvardhana Motherson Innovative Autosystems). SMIA with its headquarters in Michelau/Oberfranken (Germany) is an internationally renowned specialist supplier of extruded and injection-moulded exterior and interior components with key manufacturing technologies: injection-moulding, extrusion, stretch-bending, painting and assembly. The company develops and manufactures profiles and moulded parts made of thermoplastics and hybrid components made of metal and plastic providing uninterrupted services to its customers. The results of SMIA are consolidated into SMP.

Area of Business & Industry Segment: It specializes in providing complete systems solutions in plastic parts from design and concept development, product development to simulation, test and model constructions and prototyping to fully integrated mass production modules. It also specializes in developing, producing and distributing rear vision systems for the global automotive market with product portfolio ranging from basic low-cost mirrors to brmium highly complex mirrors with integrated electronic communication features.

Europe is major contributor in turnover with 69% and revenue contribution from other geographies was Asia Pacific 18% (including India) and Americas 13%.

SMRP BV Group operates business through following main divisions:

Rear view vision systems (SMR):

SMR division produces a wide range of rear view vision systems primarily for light vehicles. SMR is a leading global supplier of exterior mirrors, with a global market share of 22% by volume with more than 40 million exterior mirror units produced during 2014-15. SMR is a global Tier I supplier of rear view vision systems to all the leading automobile OEMs, including Hyundai Kia, Ford, General Motors, PSA, Renault/Nissan, Suzuki, Fiat, Toyota, Tata JLR, Volvo, BMW, Daimler and Volkswagen. SMR has brsence in 14 countries with 20 production facilities including 2 module centres with more than 8,600 employees as on March 31, 2015.

The series of actions initiated post acquisition has resulted in significant recovery and stabilizing operations. These actions include streamlining of operations, restructuring of manufacturing facilities, rationalization of cost at other facilities, upgrading of facilities and focus on removing inefficiencies from the system, integration of IT activities, sharing of best practices between all facilities, improving the operating cash flow, restructuring of management and identify opportunities for vertical Integration. As a result, SMR has been able to win new orders and maintain strong relationship with all customers to increase revenue with significant improvements in operating margins generating positive cashflows.

SMR's revenue registered growth of 14% at Euro 1,276 million for the fiscal year ended March 31, 2015 from Euro 1,119 million for the fiscal year ended March 31, 2014. There is significant increase in sales across all geographical locations..

SMR has delivered strong growth in EBITDA of 16% at Euro 125 million as compared to Euro 107 million during brvious year.

Interior and exterior modules (SMP):

SMP division produces various polymer-based interior and exterior products for light vehicles. SMP is a full systems solutions provider in plastic parts from design & concept development, product development to simulation, test and model constructions and prototyping to fully integrated mass production modules. It's product portfolio primarily comprises of complete modules, including door panels, instrument panels and bumpers as well as other plastic components and systems, such as centre consoles, decorative interior trims and plastic body parts. These products involve a complex manufacturing and assembly processes, require significant systems integration expertise and rebrsent key comfort and aesthetic features of the vehicles in which they are integrated. The series of actions initiated post acquisition has resulted in significant recovery and stabilizing operations. These actions include streamlining of operations, restructuring of manufacturing facilities in stress, rationalization of cost at other facilities, upgrading of facilities and focus on removing inefficiencies from the system, integration of IT activities, sharing of best practices between all facilities, restructuring of management and identify opportunities for vertical Integration. As a result, SMP has been able to win new orders and maintain strong relationship with all customers to increase revenue with significant improvements in operating margins.

There is an increase in inventory during current financial year due to engineering project under development.

As at the year end, the cash and bank balance is higher for meeting the capital expenditure payments for new plants.

During the year, SMP registered growth of 16% in revenue, Euro 2,222 million from Euro 1,917 million with 32% increase in EBITDA margin and substantial growth in PBT and PAT. SMP registered consistent revenue growth across all products, regions and key customers. Cost control and discipline are reflected in consistent year on year "EBITDA" margin improvement to 6.2% from 5.4%.

The division is focusing on adding new value added modules that require specialized engineering abilities. SMP's advanced production technologies and product range of interior and exterior products for automotive industry give opportunities to the division to expand the operations with the existing customer base. Since acquisition, SMP has been consistently growing as well as significant improvement in operating performance. SMP is making significant investments for meeting demands for new order received.

Outlook

The status of capacity expansions initiated during brvious year is as follows:

¦ SMP has completed setup of new Greenfield facility located in Pearl River delta region at Foshan, China. Commercial production and supplies started during the year from this facility.

¦ SMP has incurred significant amount for construction of new Greenfield facility at Schierling, Germany for manufacturing of exterior modules to meet new orders. Commercial production and supplies started during the year from this facility.

¦ SMP has setup new paint line and other improvements at Oldenburg to bring further operational efficiency to the plant. Commercial production and supplies started during the year from this facility.

¦ SMP made expansion in its plants in Latin America, Spain and China during the year.

¦ SMR has expanded capacities at Marysville (USA), to support new orders received from existing customers. SMR is further expanding capacities to meet the customer requirements.

¦ SMR started commercial production and ramp up of supplies from new facility in Langfang (China).

¦ SMR has completed set up of new plant at Chongqing (China) to support sales growth of global customers in China, commercial production and supplies have started during the year.

SMRP BV started expanding the capacities at the following locations:

¦ SMP is setting up brownfield production facility in Botzingen (Germany) for manufacturing of plastic components to meet new orders. Commercial production will start during 2015-16.

¦ SMP is setting up new paint line and making other improvements at Polinya, Spain plant to add capacities and bring further operational efficiency to the plant.

¦ SMP is setting up new paint shop at Beijing (China) to add capacities for meeting the requirements of new orders for door trims. Commercial production will start during 2016-17 from this facility.

¦ SMP is setting up new greenfield plant at San Jose (Mexico) to add capacities. Commercial production will start during 2016-17 from this facility.

¦ SMR is setting up new glass line & side turn indicator facility in India for captive consumption.

¦ SMR is also expanding its actuator manufacturing in France for mainly supporting in- house requirements.

MSSL Standalone

MSSL is the flagship company of the group and is the ultimate holding company. It is a leading supplier of wiring harnesses, injection-moulded components, assemblies, blow moulded components, integrated modules and high brcision plastic parts to OEMs. MSSL is working with more than 29,300 employees in 47 facilities across India

Wiring Harnesses

The wiring harness division is the market leader in India with over 65% market share of passenger car wiring. It also contributes 75% to the company's sales within India. The division endeavors to take its vision forward of becoming a globally brferred solutions provider demonstrated from the apbrciation and awards received from its customers in the categories of Quality, Cost, Delivery, Development, Management, Vendor Performance and Supply to name a few.

Wiring harness division has 23 facilities in India sbrad over Noida, Haryana, Pune, Bengaluru, Chennai, Rajasthan and Gujarat. New manufacturing facilities are coming up in Noida and Chennai in 2015-16.

It includes sale of wiring harness of Rs. 1,912 million (Previous Year Rs. 1,696 million) to various locations of SMR. The total sale of wiring harness in India and outside India registered a growth of 7% mainly on account of increase in demand from existing and new customers.

Modules and polymer product division

This division is continuously upgrading and expanding its facilities to meet increasing customer requirements. It manufactures wide range of injection-moulded components, assemblies, blow moulded components, integrated modules and high brcision plastic parts especially connectors, fuse boxes and junction boxes for wiring harnesses. It also has a well-established tool room which develops moulds for a wide range of applications from high brcision components to complicated automobile parts with specialization in wiring harness components.

Polymer division has 21 facilities in India sbrad over Noida, Manesar, Pune, Bengaluru, Chennai, Pondicherry, Rajasthan and Gujarat. It is planning to start a new manufacturing and a design and engineering centre in Chennai, India in 2015-16. This division has established itself as a leading module supplier to the car manufacturers in India. It will continue to witness healthy growth because of expanding customer base and diversified product portfolio.

MATE units have been awarded with apbrciation in Quality, Cost, Delivery, Development, Program Management, Vendor Performance and Supply categories by various customers.

The sale outside India in Module and Polymer division of the company has registered a growth of 18% during 2014-15.

Machined metal components, rubber components and others

Metal Machining business is done by Motherson Innovative Engineering Solutions (MINES), a division of MSSL, which has its facility at Bengaluru, India. Main products manufactured by the division are gear rim, gear wheel, gear blanks, hydraulic cylinder parts, parts for injection moulding, heat sinks, gear box pins.

The Rubber Components business is conducted through MAE division of MSSL in Chennai, India and Noida, India.

During the year, the division achieved growth of 5% in its domestic revenue and 34% outside India. The growth in revenue outside India is mainly contributed by increase in demand from existing customer.

Outlook

¦ The Company has completed construction of new facility for manufacturing moulded components and integrated modules in Sanand (Gujarat) and started trial run. Commercial production and ramp up will start during financial year 2015-16.

¦ MSSL is setting up two manufacturing facilities in Walajabad to meet increasing demand from customers. The new facilities will start operations by the end of 2015-16.

¦ A Design & Engineering centre is being set up in Chennai to provide designing and engineering services to business.

¦ The Company is expanding its wiring harness manufacturing capacity at existing facilities in Noida, India.

OTHER SUBSIDIARIES:

MSSL Mideast (FZE)

Introduction: MSSL (ME) is a 100% subsidiary of Motherson Sumi Systems Ltd and specializes in the manufacturing of wiring harness. It is located in SAIF Zone Sharjah, UAE.

Area of Business & Industry Segment: It supplies wiring harness to leading manufacturers of material handling equipment, construction equipment, agricultural machines, garbage handling trucks etc. The Company is strategically located for catering to the European & the U.S market. The company also supplies wiring harness for automotive mirrors to various locations of SMR. Certifications: ISO/TS 16949:2012

Performance in 2014-15: The Company has maintained the revenues at the same level of Euro 40 million as compared to brvious year.

MSSL (GB) LTD.

Introduction: The Company is a 100% subsidiary of Motherson Sumi Systems Ltd. and is located in New Castle, UK.

Rs.MSSL (GB) supplies wiring harness and related modules to niche segments in UK.

Performance in 2014-15: The revenue turnover of the company remains the same at GBP 14 million as compared to the brvious year.

MSSL Wiring System

Introduction: MSSL Wiring System rebrsents the wiring harness business of Stoneridge Inc of USA acquired by the company along with three fellow subsidiaries in Mexico i.e. Alphabet de Mexico, S.A. de C.V., Alphabet de Mexico de Monclova, S.A. de C.V. and Alphabet de Saltillo, S.A. de C.V. The acquisition includes six manufacturing facilities located in Portland, Indiana (USA); Chihuahua, Mexico; Saltillo, Mexico; and Monclova, Mexico; a warehouse located at El Paso (USA), as well as an engineering and administrative center located in Warren, Ohio (USA).

Area of Business & Industry Segment: It designs and manufactures wiring harness products for sale principally to the commercial, agricultural and off-highway vehicle markets, as well as assembles entire instrument panels that are configured specifically to an OEM customer's specifications in the commercial vehicle market.

Performance in 2014-15: The Company achieved revenue of US$ 163 million from the date of acquisition of August 1, 2014.

Motherson Electrical Wires Lanka Private Limited

Introduction: The Company is a 100% subsidiary of Motherson Sumi Systems Limited and is located in Sri Lanka.

Area of Business & Industry Segment: The Company specializes in the manufacturing of wires for automotiveapplications. It supplies wires to different manufacturing locations of the Group.

Certifications: ISO 14001:2004

Performance in 2014-15: MWL achieved revenue of US$ 22 million as compared to US$ 25 million in the brvious year. In year 2014-15, the company distributed dividend of US$ 3 million.

MSSL Tooling (FZE)

Introduction: The Company is a 100% subsidiary of Motherson Sumi Systems Limited and is located in Sharjah, UAE. Area of Business & Industry Segment: The Company specializes in the manufacturing of high quality plastic moulded components, injection moulded brcision tool & plastic parts. The Company has also facilities for post moulding operations and assembly. MTL supplies to Tier 1 customers and supports the polymer business in Europe. The Company serves the auto components, pharmaceuticals, construction-anchors industry.

Certifications: ISO/TS 16949:2009, ISO 9001:2008, ISO 14001:2004

Performance in 2014-15: The Company achieved 19% growth in revenue to Euro 7.8 million in 2014-15, as compared to Euro 6.6 million in the brvious year.

MSSL Advanced Polymers s.r.o

Introduction: The Company is a 100% subsidiary of Motherson Sumi Systems Ltd. and is located in DolniRedice, Czech Republic.

Area of Business & Industry Segment: The Company supplies products to leading European automotive Tier-I suppliers. The product range includes connecting door rods, plastic parts safety belts, connectors, sensing elements, covers, parts for pneumatic dispatch, visible parts for roof rays, plastic parts for fuel tanks etc. Certifications: ISO/TS 16949:2009, ISO 14001:2005

Performance in 2014-15: The Company has generated revenue of Euro 26 million in 2014-15 as compared to Euro 12 million in the brvious year.

MSSL GmbH

Introduction: The Company is a 100% subsidiary of Motherson Sumi Systems Limited. MSSL GmbH is located in Gelnhausen near Frankfurt, Germany.

Area of Business & Industry Segment: The Company supplies plastic components to Tier 1 customers and also acts as the holding company and corporate office providing support to the European entities.

Performance in 2014-15: The Company achieved a total turnover of Euro 11 million as compared to Euro 6 million in the brvious year.

MOTHERSON ORCA brCISION TECHNOLOGY GmbH

Introduction: The Company is a 95.1% subsidiary of Motherson Sumi Systems Ltd. and is located in Durrheim, Germany. During the year the Company expanded its business operation in Mexico through its subsidiary company.

Area of Business & Industry Segment: The Company serves automobile and auto component manufacturers and tier 1 customers. The product range includes brcision turned parts for fuel injection, fuel pump, emission controls, brssure sensors, air condition systems etc.

Certifications: ISO /TS 16949

Performance in 2014-15: The Company achieved revenue of Euro 9 million as compared to Euro 12 million in the brvious year. The Mexican customer of the company is now served through the Company's subsidiary in Mexico from 2014-15, hence there is reduction in revenue.

Motherson Techno Precision Mexico, S.A. de C.V

Introduction: The Company is a 100% subsidiary of Motherson Orca Precision Technology GmbH which is 95.1% subsidiary of Motherson Sumi Systems Ltd. and is located in Mexico. Area of Business & Industry Segment: The Company provides engineering, design and prototype services to customers in Americas.

Performance in 2014-15: The Company has started commercial production during the year and achieved revenue of Euro 5 million during its first year of operation.

MSSL s.r.l. Unipersonale

Introduction: The Company is a 100% subsidiary of Motherson Sumi Systems Limited located at Pontedera, Italy. Area of Business & Industry Segment: The Company provides engineering, design and prototype services, mainly to wiring harnesses customers in Europe.

Samvardhana Motherson Plastic Solutions GMBH & Co KG

Introduction: The Company is a 100% subsidiary of Motherson Sumi Systems Limited located at Pontedera, Italy.

Area of Business & Industry Segment: The Company provides engineering, design and prototype services to MSSL s.r.l.Unipersonal.

Performance in 2014-15: The Company has achieved revenue of Euro 14 million during the year.

MSSL Global RSA Module Engineering Ltd.

Introduction: The Company is a 100% subsidiary of Motherson Sumi Systems Ltd. and is located at Automotive Supplier Park, Rosslyn, South Africa in the heart of Gauteng's automotive industry. The Company has expanded its base at South Africa by setting up new facility at Durban, for manufacturing of moulded parts like bumpers, instrument panels and door trims for serving increasing customer base. The new plant started operation from 2013-14.

Area of Business & Industry Segment: The Company is manufacturing moulded parts like Bumpers, Interior Trims and fully robotic paint shop for painting body colour matched parts for leading OEMs.

The automotive and components industry in South Africa is well placed for investment opportunities. Vehicle manufacturers such as Ford, BMW, Nissan, Toyota and Volkswagen have production plants in South Africa. Companies with production plants in South Africa are well placed to take advantage of the low production costs, coupled with access to new markets as a result of trade agreements with the European Union and the Southern African Development Community free trade area. South Africa's automotive industry is a source for the manufacture and export of vehicles and components to the global automotive industry. The Company expects to reap full benefits of existing opportunities and future growth.

Certifications: TS16949: 2009 and ISO 14001 Performance in 2014-15: The Company achieved growth of 5% in revenue at ZAR 422 million as compared to ZAR 403 million in brvious year.

MSSL Japan Limited

Introduction: The Company is a 100% subsidiary of Motherson Sumi Systems Limited and is located in Nagoya-Shi, Japan.

Area of Business & Industry Segment: The Company supplies wiring harness for heavy commercial vehicles.

Performance in 2014-15: The Company achieved revenue of JPY 1,999 million during the year 2014-15 as compared to JPY 2,347 million in the brvious year.

MSSL Mexico, S.A. De C.V.

Introduction: The Company is a 100% subsidiary of Motherson Sumi Systems Limited and is located at San Luis Potosi, Mexico. Area of Business & Industry Segment: The Company supplies wiring harness within the group and to non automotive customers in local and USA market. This facility is strategically located keeping in mind the proximity with the customers in USA market and for supplying just in time .

Performance in 2014-15: The Company achieved strong momentum in sales and registered a growth of 112%in revenue at MXN 120 million as compared to MXN 57 million in brvious year.

MSSL WH System (Thailand) Co.

Introduction: The Company is a 100% subsidiary of Motherson Sumi Systems Limited and is located at Hemaraj Eastern Seaboard Industrial Estate, Rayong Province, Thailand. Area of Business & Industry Segment: Thailand is a regional manufacturing hub and supplier for many of the world's largest auto makers. Thailand's auto industry is the most developed and largest in Southeast Asia, with a combined capacity to produce more than 1 million vehicles per year. The Company expects to reap the full benefits of existing opportunities and future growth in the region. The Company has set up this facility at Thailand for manufacturing of wiring harness for leading OEMs.

Performance in 2013-14: The Company achieved a growth of 101% in revenue at THB 176 million as compared to THB 88 million in brvious year.

MSSL Korea WH Ltd.

Introduction: The Company is a 100% subsidiary of Motherson Sumi Systems Limited and is located at O-Chang Plaza, 8214 Yangcheong-ri, Ochang-eup, Cheongwon-gun, Chungbuk, Korea.

Area of Business & Industry Segment:

The Company was set-up to supply wiring harness in Korea. Performance in 2013-14: The Company achieved a growth in revenue at KRW 1,423 million as compared to KRW 339 in brvious year.

Motherson Elastomer Pty Ltd

Introduction: The Company is an 80% subsidiary of Motherson Sumi Systems Ltd. and is located in Bendigo, Victoria in Australia.

Area of Business & Industry Segment: The Company manufactures orbitread tyre compounds, conveyor belting rubber compounds, automotive component rubber compounds, weather strips, glass runs, boot and hood seals, tank straps, rubber flares, bonded components, suspension bushes, engine and transmission mounts, bump stops, large engine gaskets, silent blocs, industrial mountings and couplings, auto and truck suspension components. MEPL caters to the automotive, mining, tyre retreaders, construction, defense and rail industries. It is one of the largest non tyre related mixing plants in Australia.

Certifications: ISO/TS 16949:2009, ISO 9001:2008, ISO 14001:2004

Performance in 2014-15: During the year, the company achieved a turnover of AUD 25 million as compared to AUD 20 million in the brvious year.

Global Environment Management (FZE)

Introduction: The Company is a joint venture between Motherson Sumi Systems Ltd. and E- Compost Pty Ltd, Australia. It is located at the SAIF Zone, Sharjah, UAE.

Area of Business & Industry Segment: The Company has a 100% subsidiary in Australia for marketing its key product Aerobin in Australia. The product re-cycles household and garden wastes into beneficial compost without any use of electricity or chemicals which helps in avoiding dumping of household waste into landfill. The Aerobin is now available in Europe, USA, Japan and Australia.

Performance in 2014-15: The revenue of the Company remains flat at AUD 0.3 million as compared to the last year revenue of AUD 0.8 million.

Vacuform 2000 (Pty) Limited

Introduction: The Company is a 51% subsidiary of Motherson Sumi Systems Limited, incorporated in South Africa and having its manufacturing facility at Rosslyn, South Africa.

Area of Business & Industry Segment: The Company specializes in manufacturing of Vacuum-forming, thermo-formed products, polyurethane moulded products and blow moulded products majorly for automotive industry. The company supplies components to all the leading automotive OEMs brsent in the region. The Company is a BBBEE entity registered level 2 and enjoys benefits of brferential procurement, privileges and support from automotive, financial & other Institutions.

Certifications: TS16949: 2009 and ISO 14000 Performance in 2014-15: The Company achieved total revenue of ZAR 107 million as compared to ZAR 83 million in brvious year. The company has won new business from existing customers for blow moulded ducts.

Motherson Wiring System (FZE)

Introduction: The Company is a 100% subsidiary of Motherson Sumi Systems Ltd. and is located in SAIF Zone, Sharjah, UAE.

Area of Business & Industry Segment: The Company's principal activities consist of providing building on lease at UAE to group companies and receiving rental income for the same.

MSSL Ireland Pvt. Ltd.

Introduction: The Company is a 100% subsidiary of Motherson Sumi Systems Limited located at Enniscorthy, Ireland. Area of Business & Industry Segment: The Company provides design services, mainly to wiring harnesses customers. It also provides logistics support services to MSSL and MSSL Mideast, enabling them to supply online to customers in Europe.

Performance in 2014-15: The Company achieved total revenue of Euro 0.3 million including service income as compared to Euro 0.3 million in brvious year.

MSSL (S) Pte Ltd.

Introduction: The Company is a 100% subsidiary of Motherson Sumi Systems Ltd and is located in Singapore.

Area of Business & Industry Segment: It provides support to MSSL and its group companies mainly for international purchasing. The company is also a holding company for the group investments in MSSL Australia Pty Ltd., MSSL Japan, MSSL Mexico S.A. De C.V., MSSL WH System (Thailand) Co., Ltd and MSSL Korea WH Limited.

MSSL Australia Pty. Ltd.

Introduction: MSSL Australia is a 80% subsidiary of Motherson Sumi Systems Ltd. located at Australia.

Area of Business & Industry Segment: The Company is a holding company and corporate office providing support to the Australian entities.

MSSL Investment Pty. Ltd.

Introduction: The Company is a 80% subsidiary of Motherson Sumi Systems Ltd. through MSSL Australia Pty. Ltd. located at Australia.

Area of Business & Industry Segment: The Company's principal activities consist of providing land and building on lease at Bendigo to its fellow subsidiary Motherson Elastomers Pty Ltd. The Company is receiving rent income from one of the group company.

MSSL Mauritius Holdings Ltd.

The Company is a 100% subsidiary of Motherson Sumi Systems Ltd. and is located in Mauritius. The Company is holding investments in Woco Motherson Limited (FZC), MSSL Ireland Pvt. Limited, Global Environment Management (FZC), Samvardhana Motherson Global Holdings Ltd., MSSL Global RSA Module Engineering Limited and Vacuform 2000 (Pty) Limited.

MSSL Handels GmbH ("in Liqui")

The process for dissolution of the Company had been initiated and filed for liquidation on 8th October 2013. The Company was dissolved during the year.

Kyungshin Industrial Motherson Limited (KIML)

Introduction: KIML is a joint venture between Kyungshin Corporation (KIC), South Korea and Motherson Sumi Systems Ltd. The company manufactures wiring harnesses at three locations in Chennai (India).

Area of Business & Industry Segment: The Company is a single source of wiring harness for Hyundai Motor India Ltd. for its complete range of cars manufactured in India. It caters exclusively to Hyundai Motors. The Company has the facility of conveyorised mass production of wiring harness. Certifications: ISO/TS 16949:2009, ISO 14001:2004, QUALITY 5 STAR

Performance in 2014-15: The Company achieved growth in revenue of 17% at Rs. 9,638 million as compared to Rs. 8,241 million in the brvious year. KIML is 100% supplier of wiring harnesses to Hyundai Motors India Ltd. since the inception.

Calsonic Kansei Motherson Auto Products Private Limited

Introduction: The Company is a joint venture between Motherson Sumi Systems Ltd. and Calsonic Kansei, Japan. The manufacturing units are located in Manesar and Chennai in India.

Area of Business & Industry Segment: The Company specializes in the manufacture of climate- control systems including HVAC modules, combrssors, body control modules and meters clusters for the automotive industry.

Performance in 2014-15: The Company achieved revenue of Rs. 4,057 million as against Rs. 3,240 million in the brvious year registering a strong growth of 25%. The Company has started commercial production and supply from new plant at Bawal, Haryana.

Samvardhana Motherson Nippisun Technology Limited

Introduction: The Company is a joint venture between Motherson Sumi Systems Ltd. and Toyota Tsusho Corporation, Japan and Nippon Pigment(s) Pte Ltd., Singapore incorporated in September, 2013. The manufacturing units are located in Chennai, India.

Area of Business & Industry Segment: SMNTL supplies variety of resin materials compounds to the automotive customers. Performance in 2014-15: The Company started commercial production from this facility and achieved revenue of Rs. 40 million during its first year of operation.

Joint Ventures with WOCO Franz Josef Wolf Holding Gmbh

Introduction: The Company has three joint venture entities with WOCO Franz Josef Wolf Holding Gmbh, namely Woco Motherson Elastomer Limited located at Noida, India, Woco Advance Rubber Technologies Limited located at Kandla Special Economic Zone, India and Woco Motherson Limited (FZC) located at Sharjah Airport International Free Zone, Sharjah, UAE.

Area of Business & Industry Segment: The Companies specializes in liquid silicone rubber injection Moulding. The product range includes products for automotive applications, medical equipment applications, measuring and control technology, construction sector and kitchen appliances. Performance in 2014-15: The Companies achieved a turnover of r 1,491 million as compared to r 1,442 million in the brvious year. The Company and its joint venture partner WOCO Franz Josef Wolf Holding Gmbh, Germany have agreed to discontinue the joint venture entities.

INTERNAL CONTROL SYSTEMS

The Company has in place adequate systems of internal control commensurate with its size and the nature of its operations. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use, executing transactions with proper authorization and ensuring compliance of corporate policies. The Company has appointed internal auditors to carry out both system and financial audit of its activities. The audit findings are reviewed by the Audit Committee in their meetings at regular intervals, details of which have been provided in the corporate governance report. Suggestions for improvement are considered and the Audit Committee follows up on corrective action. The Company has also identified various business risks and laid down necessary procedures for mitigation of the same. Given the geographical sbrad of operations of the Company, the Company has devised adequate systems to ensure statutory compliances at each location and these compliances are monitored regularly.

HUMAN RESOURCE

For Motherson Sumi Systems Ltd. its people are its biggest assets. The Company is proud to deliver value to its customers, investors and society as whole. The real force behind the emergence of Motherson Sumi Systems Ltd. is its people, who combine to create a great synergy into the company; pertaining to their contribution, MSSL was recognized as 'The Company of the Year' for 2014 by Business Standard. MSSL is the melting point of people from various geographies & demographics & people having diverse skillsets, speaking different languages & having dissimilar backgrounds.

Human resource development is one of the prime agenda for the company. To keep its employees well versed in their respective fields, the Company regularly conducts trainings sessions & workshops for its employees from top to bottom. The move ensures improved performance, disciplined processes with better practices, which culminates to qualitative end product resulting in customer satisfaction. Periodic skill enhancement activities combined with in-house training facilities are setup to recognize talent & nurturing them through mentorship & process specific trainings & modules. In order to promote, innovation in the processes & at workplace, Innovations Awards are awarded to the most Innovative Technical Paper among many.

MSSL believes in all-round development of an individual therefore, regular synergy activities like Annual Cricket Tournament, Annual Painting Competition, InSync Quiz Competition along with festival celebrations are organized at each unit after regular intervals to engage employees and provide them a level playing field to interact amongst fellow colleagues & their families. MSSL encourages its employees to share their feedback regarding any improvements in their respective processes or outside the ambit of their work under its Suggestion Scheme; a panel of experts review those ideas & if feasible implement them at the workplace. Relevant suggestions are rewarded. MSSL recognizes top performers in diverse fields & awards them at its Annual Day before all the employees to instill a sense of pride in them & encouraging others to perform.

Quality Circle Competition is a vital employee engagement activity where employees are encouraged to brsent their innovative project ideas, implementations & teamwork spirit. MSSL celebrates & rewards innovation, therefore, MSSL annually conducts Quality Circle Convention- a platform for all Quality Circles from across the world to showcase their ideas & projects. Currently there are 730 Quality Circles actively operating within the Group. MSSL along with its subsidiaries & JVs has 313 active Quality Circles. In the recently concluded 16th Annual Samvardhana Quality Circle Convention(SMQCC) organized at Noida on April 18, 2015- Ideal Quality Circle from Sector 84, DTA & Gemba Kaizen Quality Circle from Sector 84, FUSO were adjudged as 2nd Runners-up. MSSL also received "Mr. K L SEHGAL Memorial Trophy" for the maximum number of projects completed during the year. Similar competition was organized at MSSL, internally to choose MSSL competing teams at SMQCC, where Agni Quality Circle from Faridabad was adjudged as the Winner closely followed by Netwon & Saksham Quality Circle who were declared as 1st Runner-up. Best Unit Award went to MSSL- Noida Sec. 64 for completion of maximum number of projects during the year.

Quality Circle Teams from MSSL also participated in external competitions and won accolades. Jagriti Quality Circle from Gurgaon was adjudged as Winners in the 9th National Quality Circle Competition organized by Automotive Component Manufacturers Association of India at Bangalore. Mission Quality Circle from Noida Sec 64 & Ideal Quality Circle from Sector 84, DTA won Gold Awards in Chapter Convention on Quality Concepts organized by Quality Circle Forum of India(QCFI) - Delhi Chapter on October 10, 2014 at Gurgaon.

Belaku Quality Circle from MSSL Bengaluru won Gold Award &Juran Quality Circle from MSSL Bengaluru won Silver Award in Chapter Convention on Quality Concepts organized by QCFI.

National Quality Circle Competition organized by Honda Supplier's Club, Kirti Quality Circle from MSSL Noida C-14 won Gold Award and also honored with "Plaque of Apbrciation" by Honda Cars India Ltd for outstanding NH Circle Activity, Spirit of Team Work, Co-operation & Continuous Improvement. Jagriti Quality Circle from MSSL Gurgaon was adjudged as Winners in the Vendor's Quality Circle Competition organized by MSIL at Gurgaon on January 31, 2015.

The organization adopts number of welfare initiatives for its employees; health & eye checkup camps are conducted at all MSSL locations periodically to safeguard their health. Fire drills, safety workshops & other safety & security exercises are held to create awareness regarding safety & security amongst the responsible champions & employees. The Human Resource department also oversees CSR related activities like blood donation, blanket donation, tree plantation, promoting girl child education etc. The company has also partnered with an NGO to carry out social welfare.

ENVIRONMENT, HEALTH AND SAFETY (EHS)

MSSL carries out activities with due attention to Environment, Health & Safety. The company focuses on environmental protection, occupational health and safety and strives for continual improvement in all the three parameters. MSSL complies with regulations, advocates for progressive environmental policies, and protects workers' safety as part of its corporate responsibility. There are safety trainings and workshop undertaken by the organization for all its employees. The trainings aim to educate the employees and raise awareness in employees about the importance of their safety and about the various safety programs and policies of the organization. At the operational level, departmental heads and supervisors ensure adequate safety and security in their respective departments and units, most of which are accredited with ISO 14001 certification. However, every employee at MSSL is committed to meeting the highest standards of corporate citizenship within the realms of the company's vision and Corporate Social Responsibility codes. As an organization, MSSL takes the responsibility of creating a positive impact on the communities where it does business across the globe where it has its footprints. Every year MSSL observes a Safety Week. This year it was from 4th March 2015 - 10th March 2015 across all its units. This is in line with its commitment to the health and safety of employees. The main objective of the week was to "Make the workplace Safe, Secure & Injury Free". This year, the week saw a series of programs and activities including safety training sessions for staff, bus drivers, ambulance drivers, forklift drivers etc. Similar safety awareness training was also imparted to external contractors' services such as the canteen, housekeeping & security personnel. Other activities carried out during the week included display of safety banners, distribution of safety badges, a quiz competition on safety measures as well as a safety march for the workers on the shop floor of various units. All external contractors were also given a brief about safety norms. In addition, Advanced Fire Fighting Technique cylinders were made available to all units. MSSL provides education and helpful tips for Fire Safety and individual safe work practices. This provides an additional layer to ensure that campus facilities are as safe as possible for every employee.

A safe and healthy workplace being one of the highest priorities for MSSL, safety audits are carried out at regular intervals in all the units. A training module, designed for new employees, gives an insight into the safety norms to be followed and be aware of. Work permits to employees are issued which cover all aspects of safety before, during and after the work.

MSSL lays emphasis on safety management, employee training, and injury brvention. The teams are developed and they implement various health programs to provide employees with relevant and clear safe work procedures and trainings to comply with safety regulations.

MSSL is committed to the environment. MSSL conducts various conservation drives, such as reducing paper wastage and using the best pollution control equipment. A special team, called the 'Green Team', has been created to take green initiatives such as using environmental friendly products etc. The Company over the years has built a tree plantation movement in its units with the objective of promoting a green and pollution free environment.

Global Environment Management, a MSSL subsidiary, is dedicated towards developing products for improving the environment. Its first product, Aerobin, is a technological breakthrough in home and garden waste management that allows households to effectively recycle organics at home. The product helps the average household divert 50% of its waste away from landfill, into compost.

The company's polymer and mirror divisions also work on developing new lightweight products and support the weight reduction programs of their customers in order to reduce vehicle weight and resultant reduction in emissions because of less fuel consumption. Axis less mirror from SMR is an example of weight reduction.

MSSL is trying to continuously meet new challenges posed in this area, creating systems to better deal with issues related to Environment, Health and Safety on priority basis in its every day functioning.

OPPORTUNITIES AND FUTURE PROSPECTS

The automotive industry worldwide is performing well. However the main challenge is that the global automotive market is uneven. The North American market is growing well. It is up by 5% in 2014-15 as compared to last year. MSSL is benefitting from the positive growth in the US market. It is coming up with several new facilities to cater to its customer requirements there as well as upgrading some of its facilities which will improve operating performance. The outlook in a few pockets is a little weak. The Indian market's performance has been inconsistent but the trend is positive.

However, most original equipment manufacturers (OEMs) are betting big on future demand, and hence, continue to ramp up. MSSL is at an advantageous position to convert this trend into an opportunity with its reputation of having the ability to serve its customers in every way possible right from the designing and development phase, which places it as a brferred supplier for its OEMs. The wide global sbrad across 25 countries helps it cater to its customer needs locally. MSSL is coming up with 17 plants across Europe, Asia, North America and China which helps it to be brpared to serve its customers locally. This also allows MSSL to capitalize on the changing trends in the global automotive space.

MSSL completed its fourth Five Year Plan surpassing its revenue targets consistently

This has been possible with support from the customers who have asked MSSL to do more. MSSL always works with value creation logic. It's a strategy 'chakra' that the company will continue to follow even for the new 2020 targets.

It starts with a purpose - The purpose to be part of the world's most admired automotive brands. MSSL achieves this purpose with its consistent outstanding performance. This is the basis of the success of the company. The company focuses on QCDDMSES in all its operations. This coupled with vertical integration and full system integration makes it a full systems solutions provider across its product verticals.

This unerring focus on quality across all sections of business builds on the customers trust in MSSL. This is the key to its success. It opens up path for more collaborations and organic and inorganic growth. Trust leads to customer response of asking Motherson to do more. This is a virtuous circle and this chakra creates direct value for MSSL's customers and all its stakeholders.

Vision 2020

This year, MSSL launches its fifth five-year plan. The five-year plan is an important tool for MSSL, to bring together the entire organization and to focus on a common goal. Vision 2020 contains four key objectives, namely to achieve:

• US$ 18 billion of consolidated revenues in 2020

• a ROCE of 40%

• "3Cx15" (no Component, Customer or Country to rebrsent more than 15% of turnover)

• A dividend pay-out of 40% of our consolidated profits

While setting goals, MSSL does not forget that the only way to reach them is to create superior value for its customers, investors, employees, communities it works in, et cetera. The financial outcome is always the result of being of great value to others. MSSL is confident it can continue to do that, even far beyond 2020.

MSSL would continue to focus on increasing the content per car. This drive to deliver more to the industry, thereby catering to the needs of the end user, has kept MSSL at the forefront of the Group's growth strategy.