The need for capital expenditure at SAS Autosystemtechnik (SAS) is “much lower” than our traditional business as it involves running assembly lines near carmakers’ facilities to integrate auto components for producing cockpit modules, said Samvardhana Motherson International’s (SAMIL) vice-chairman Laksh Vaaman Sehgal on Monday.
Noida-based automotive component manufacturer SAMIL on Sunday announced it is buying SAS Autosystemtechnik (SAS), which manufactures automobile cockpit modules, from French company Faurecia at an enterprise value of Rs 4,790 crore.
In a conference call with analysts, Sehgal said: “It was our customers’ directive to move to the assembly line business. We definitely have customer support. We have spoken to our major customers. They see a positive trend of this (assembly line) business growing and welcomed Motherson’s decision to move in this direction.”
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