Motherson's Growing Global Footprint
A young brigade of entrepreneurs with resolute optimism to reach heights of success has revolutionised global markets through innovative ideas. Vivek Chaand Sehgal, an Indian-Australian, with business operations in both Australia and India, is currently heading Samvardhana Motherson, a key division of the larger Motherson Group, which produces car parts.
Vivek Sehgal, 67, the co-founder of the business Samvardhana Motherson Group, is one of the prominent business barons today. From drawing a salary of Rs 2500 in the early 1970s, he went on to build a business empire, with a whopping sales revenue of $12.7 billion (Rs 105,600 crore). He is an Australian citizen, though mostly he lives in India.
Humble Beginnings
Vivek Sehgal was born in 1957 in Delhi, India. After his schooling from Birla Public School in Pilani, Rajasthan, he earned a Bachelor's degree from Delhi University. His grandfather was a well-known jeweler. In the mid-1970s, at the age of 18 years, he learnt that the Hunt brothers (Nelson Bunker Hunt, William Hunt, and Lamar Hunt, US) were purchasing silver from all over the world. They reportedly possessed then silver worth $4.5 billion. Vivek Sehgal was paid one rupee for every kilogram of silver he delivered to the airport. Thus, every month, he earned a modest sum of about Rs 2500. This amount reportedly was bigger than his father's earnings from the government.
Entrepreneurial Journey
Vivek Sehgal's entrepreneurial journey began in 1975 when, alongside his late mother, Swaran Lata Sehgal, he established Motherson, which initially specialized in silver trading. Motherson, his company's name itself is a loving tribute to his cherished business partnership with his mother. This shared dedication and commitment to building a legacy would transcend generations.
The downfall of the Hunt brothers and their subsequent bankruptcy put Motherson's future in the silver sector in peril, since the Hunt brothers had monopolized the silver trade. Soon thereafter Motherson diversified into production of vehicle parts. Eventually, Motherson tied up with Sumitomo Electric, Japan, which paved the way for the company's success. Vivek Sehgal subsequently acquired 11 companies in 12 years. He served as managing director from 1975 to 1995 and thereafter transitioned to chairman.
Under Vivek Sehgal's leadership, Samvardhana Motherson Group has grown into a global auto parts manufacturer. The company has over 190,000 employees and operations in 44 countries. Also, it has joint ventures with several major automakers, including Ford, General Motors, and Volkswagen.
Thanks to Vivek Sehgal’s relentless pursuit of excellence and astute leadership, Motherson underwent a remarkable transformation. It evolved from its modest beginnings into a global conglomerate with a diverse portfolio spanning across sectors, such as automotive, aerospace, healthcare, and sustainable energy. Today, Samvardhana Motherson Group stands as a testament to Vivek Sehgal’s unwavering vision.
Until 1993 the company was relatively small and focused mainly on the Indian market, though it enjoyed the support of its loyal customers. But management realised that to reach its full potential and achieve greater objectives it had to become a listed firm. It believes in nurturing life-long connections that build long-term value for teams, customers and communities. It attributes its success to people, who are considered the foundation. According its top management, performance leads to trust, and by meeting the requirements of its stakeholders, it expects the company to grow further, especially by building value through long-term relationships. Its credo is 'return on investment is important, but the key to success is return on trust.'
Divisions And Products
Through its 12 divisions Motherson offers multiple products and services. With the support of its customers, these divisions have seen continual growth, besides becoming more diverse. The three major divisions of the group are Wiring Harness, Vision Systems, and Modules and Polymer Products. These together contribute more than 95% to the group revenues. The group's 12 divisions are as follows:
* The Wiring Harness division is a full service system supplier, with complete in-house design, development and manufacturing capability.
* The System Vision is one of the leading global suppliers of vision systems to the automotive industry.
* The Modules and Polymer division encompasses the company's largest business line. It develops and produces a highly diversified product range from simple plastic parts to highly integrated systems and modules, supplying to OEMs globally.
* The Integrated Assemblies division specialises in integrated premium module assembly and delivery solutions for the automotive industry.
* The Elastomers division supplies a wide range of elastomer-based solutions and products to a wide spectrum of industries, including automotive, medical, home appliances, and general industrial applications.
* The Lighting & Electronics division consists of a range of businesses, which focus on OEM supplies, besides doing business through direct channels.
* The Precision Metals & Modules division is a full system solutions provider for any metal processing, including integration of higher level assembly.
* The Technology & Industrial Solutions division focuses on technology, engineering and manufacturing solutions. It sustains the digital foundation of the group’s global operations.
* Logistics Solutions division aims to bring in efficiency, technology and specialisation in the automotive supply chain.
* The Aerospace division brings the group's current capabilities in areas, such as wiring harnesses and plastics, into the aerospace industry by providing integrated solutions.
* Health & Medical division is driven by its aim to positively impact lives globally by helping people become healthy and stay healthy.
* The Services division consists of several businesses, which engage in direct sales and services to end-customers and support their manufacturing operations.
Environmental Concerns
Environmental issues are the harmful effects of human activities on the environment. These include industrial pollution, waste disposal, and the greenhouse effect, among others. To address these concerns Motherson has taken several remedial steps. The company acknowledges that it has a responsibility to protect and preserve the planet. Thus, in accordance with the Green House Gas Protocol, it has been focusing on reducing the direct Scope 1 and 2 emissions while continuously evaluating Scope 3 emissions. This is being carried out with missionary zeal by the company, in order to meet its ambitious target of achieving Carbon Net Zero across its current global operations by 2040.
Focus On The Future
Industries are changing faster than they have been in the last 100 years. What does this mean for Motherson Group? It believes that major trends, such as digitalisation, autonomous mobility and sustainability, provide great opportunities. With its enduring entrepreneurial spirit, the company has constantly been identifying ways to adapt, to make its products excel in terms of efficiency and performance in markets, and to better serve the needs of customers. It consistently adopts new solutions and are executed in a progressive manner and thoughtful ways, with a focus on creating value for all stakeholders.
For Motherson innovation means constantly pushing the boundaries. It is attentive to customers and interact regularly with them. It also avails of the expertise of technical experts in the field to understand the evolving needs of those industries it can potentially serve. For instance, it actively participates with car manufacturers and technology experts in the open innovation platform of 'Start-up Autobahn' to help drive its development agenda.
Motherson is committed to its five-year targets by communicating them through its annual reports. The group has been following its five-year plans since 2000. The company has been able to achieve mostly its targets of the five-year plans.
Global Presence
Motherson supports customers through over 400 facilities in 44 countries across North America, South America, Europe, Africa, the Middle East, Asia-Pacific, and Australia. For FY24, Motherson Group's consolidated total revenue stood at Rs 98,879.30 crore compared to Rs 78,957.71 crore in FY23, up by 25.23%.
Vivek Chaand Sehgal: Timeline
* 1 February 1957: Vivek Chaand Sehgal was born in Delhi, India.
* 1975: Co-founded Samvardhana Motherson Group with his mother, initially in the silver trade.
* 1975-1995: Served as managing director of Samvardhana Motherson Group.
* 1995: Transitioned to chairman of Samvardhana Motherson Group.
* 2016: Received the EY Entrepreneur of the Year Award, India.
* May 2021: Forbes estimated Vivek Chaand Sehgal's net worth at US$3.7 billion.
* May 2023: Financial Review Rich List estimated Vivek Chaand Sehgal's net worth at A$4.20 billion.
As one of the wealthiest Indians in Australia, Vivek Sehgal’s legacy serves as a testament to the limitless possibilities that await people who dare to dream big and persevere in the face of challenges. His journey has been a testimony to the transformative power of passion, perseverance and a steadfast commitment to excellence, which inspire individuals worldwide to make their mark on the global arena.
(Photo: Courtesy Company Site)
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