Shares of Samvardhana Motherson International Ltd. (SAMIL) climbed 3.57% to ₹117.05 in Friday’s session after the company announced a comprehensive cost optimisation plan aimed at saving €50 million annually.
The global auto component manufacturer revealed via an exchange filing that it is undertaking proactive transformation measures through its subsidiary SMRP BV, particularly focused on Central and Western Europe. These efforts are designed to streamline operations and strengthen efficiency amid a volatile global automotive landscape marked by regulatory uncertainties and complex supply chains.
Since 2020, Motherson has completed 23 acquisitions, significantly expanding its global footprint. The new transformation strategy will involve collaboration with local workmen associations and a thorough recalibration of the workforce and cost structure.
The plan will be implemented in phases over the next three years and targets savings across multiple cost blocks including salary, employee benefits, overheads, and contract labour expenses.
The company stressed that the transformation will be carried out in compliance with all local regulatory requirements and is aimed at enhancing resilience while ensuring uninterrupted customer deliveries.
As of the latest update, Motherson shares are trading within a 52-week range of ₹107.25 to ₹216.99 and hold a market capitalisation of ₹823.67 billion.
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