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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (5747)	8/20/1999 4:57:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Motherson Sumi Systmes Ltd (MSSL) Motherson Sumi Systems (MSSL), a joint venture of Sumitomo Wiring Systems and Nissho Iwai Corporation, Japan (together control 25% equity stake), and Motherson group, India, is the leader in wiring harness manufacturing in India. It manufactures wiring harnesses, high tension cords, battery cables, lead wires, connectors, terminals, clamps and binders and a complete range of other wiring harness components. The product finds application in passenger cars, two-wheelers, heavy dump trucks, earthmoving equipment, white goods and electrical appliances. MSSL has over 60% market share of the automotive wiring harness market. Wiring harness is essential to keep the electrically-operated equipment moving and is vital to an automobile or electrical appliance just as a nervous system is to the human body. After gaining a dominant position in the passenger car market, MSSL is now tapping new segments of the auto industry. It is in the final stages of negotiations with various tractor manufacturers Mahindra & Mahindra, Eicher and TAFE - for supply of wiring harnesses. It has also ventured recently in the MCV/HCV market and has started supplying its products to Telco from Mar.'99. The company is also gearing up itself for a major export thrust. MSSL has a number of joint ventures and all of them are doing well. Motherson Sumi Electric Wires (MSSL holds 51% equity stake) manufactures insulated wires for group companies including MSSL. This unit has acquired VDA-6 accredition and is the only company in India which has been approved for supplying wires for wiring harnesses being exported to Daimler Chrysler. Kyungshin Industrial Motherson has started manufacturing wiring harness for Hyndai. Britax Motherson initiated supply of rear vision mirrors to Maruti Zen and Ford. Motherson Auto Components Engineering (MACEL), a 100% subsidiary of MSSL, entered into the high-growth area of exports by way of purchasing the running business for manufacturing of rubber and rubber metal components from Motherson Elastomers Pvt. Ltd., alongwith the buyback and technical agreement the latter had with WOCO Franz Josef Wolf & Co., Germany. The collaborator is one of the largest manufacturers of rubber and rubber metal components world wide. MACEL disposed of its facilities for manufacturing injection moulding, dip moulding and press stamping components, and the funds raised have been utilised to acquire investments in variopus joint ventures from MSSL. This has released Rs 15.38 cr to MSSL, besides cleaning up its balance sheet. In spite of a recession in the auto industry and severe pricing pressure, MSSL performed reasonably well in FY 9903. Sales and net profit remained around Rs 136.64 cr and Rs 8.68 cr. However, this year, the auto industry has staged a recovery and the first quarter for almost all segments has witnessed good growth rates. The passenger car segment is estimated to have grown around 30%. This, coupled with the benefits of financial restructuring and tapping of new segments, will lead to healthy growth in its current year's performance. Sumitomo is also interested in raising its equity stake. Sales and net profit of Rs 164 cr and Rs 12.74 cr can be expected for the current year. The current price of Rs 104 discounts the FY 9903 actual EPS (Rs 8.3) and FY 2000-03 projected EPS (Rs 12.2) 12.5 and 8.5 times, respectively. A fine investment bet indeed. Old Recommendation -- New Recommendation Buy (Courtesy:CMOT-Capital Markets)

To: Mohan Marette who wrote (5747)	8/20/1999 5:35:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Brain factories eat money-Do Indian techies feed their alma mater? Are you educated, employed and grateful to the schools and colleges you studied in for making you the person you are today? If yes, then have you ever tried expressing your appreciation with a cash contribution to those institutions? 216.32.165.70 Money, get away Get a good job with more pay and your O.K. Money it's a gas Grab that cash with both hands and make a stash New car, caviar, four-star daydream, Think I'll buy me a football team Money, get back I'm all right Jack keep your hands off my stack. Money it's a hit Don't give me that do goody good bullshit I'm in the hi-fidelity first-class travelling set And I think I need a Lear Jet Money it's a crime Share it fairly but don't take a slice of my pie Money so they say Is the root of all evil today But if you ask for a rise it's no surprise that they're giving none away ... [PS: Theme song by Roger Waters, The Pink Floyd]