InvestorQ : What is the idea of Motherson Sumi buying a stake in CIM Tools and what is the synergy?
Anjana Aiyar made post

What is the idea of Motherson Sumi buying a stake in CIM Tools and what is the synergy?

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Khushi Patel answered.
2 months ago
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Motherson Sumi Systems, India’s largest auto ancillary company, announced the acquisition of a majority stake in Bengaluru-based CIM Tools. This gives them an exposure to the fast growing aerospace segment since CIM Tools is a leading supplier to the aerospace supply chain. As part of the deal, Motherson Sumi will acquire 55% stake from the promoters of CIM Tools, while the promoters will retail the balance 45% stake in CIM.

As Vivek Sehgal put it, the company has been trying to diversify into non-automotive businesses and the aerospace diversification is just one of the many such forays planned. Motherson has traditionally followed a robust inorganic strategy towards growing its business. CIM specializes in machining and sub-assembly of components for aerospace industry and boasts of a cumulative order book of $200 million with sales of Rs.203 crore.

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