Shares of Motherson Sumi Systems Ltd. gained after the auto ancillary bagged its first order from Boeing India Pvt.
The order pertains to manufacturing and supplying aftermarket molded polymer parts for Boeing's commercial airplane interiors, Motherson Sumi said in a media statement, without disclosing the size or financial details.
“The order will commence from Q3 FY23 and will be produced in a Motherson plant situated in Noida.”
The company, it said, is scaling its capabilities to provide integrated solutions such as materials, aero structures, wiring harnesses and global manufacturing footprint to the aerospace ecosystem. “This is in line with our growth strategy to strengthen non-automotive business as announced during our five-year plan, Vision 2025.”
Ashwani Bhargava, Senior Director, Supply Chain, Boeing India (L), with Mr. Kunal Bajaj, CEO (Aerospace division), Motherson (R). (Source: Press release)
With this order, Motherson becomes a “tier-1 supplier to Boeing”, Kunal Bajaj, chief executive officer (aerospace division) at Motherson, was quoted as saying in the statement.
Motherson Sumi—one of the world's largest makers of automotive wiring harnesses and mirrors for passenger cars—in October 2021 had announced its foray into the aerospace industry with a 55% stake purchase in CIM Tools Pvt., a Bengaluru-based aerospace parts supplier.
Boeing, however, over seven decades of its presence in India, has had several tie-ups in the aerospace segment.
Hindustan Aeronautics Ltd., the state-run defence company, manufactures parts for Boeing 777, 737 as well as its fighter jets.
Last year in September, Tamil Nadu-based MSME Aerospace Engineers Pvt. bagged a long-term contract from Boeing to manufacture 2,500 components. Bengaluru-based Dynamatic Technologies is also a tier-1 supplier for the airliner.
Boeing also has an equity joint venture in India with Tata Advanced Systems Ltd. since 2015, called Tata Boeing Aerospace Ltd.
Shares of Motherson Sumi gained as much as 5.06%, the most in seven sessions, around noon on Friday. The stock closed 2.53% higher. Its trading volume was 1.5 times the 30-day average when markets closed.
Of the 31 analysts tracking the company, 20 maintain a ‘buy', eight suggest a ‘hold' and three recommend a ‘sell', according to Bloomberg data. The 12-month consensus price target implies an upside of 39.5%.
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