Ladies and gentlemen, good day and welcome to the conference call of Samvardhana Motherson International Limited. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. I now hand the conference over to Mr. V.C. Sehgal. Thank you, and over to you, sir.
Thank you. Ladies and gentlemen, good morning, and thank you for joining us today, early morning. We are delighted to announce that SAMIL Board has approved 100% acquisition of SAS Autosystemtechnik GmbH, from Faurecia. SAS is a leading global provider of cockpit module assembly, managing complex logistics with strong expertise in JIT/JIS solutions.
We estimate acquisition will further entrench and integrate function in the supply chain and cement our tier point five position and ability to closely serve our customers. This business has unique ability to serve new energy OEM, BEVs, NEVs platform. These OEMs predominantly focus towards technology and product development, outsourcing, manufacturing and assembly to trusted and competent suppliers. With continued EV trend, SAS is already generating 50% of its revenues from EV programs.
The company gross revenue was EUR 4.4 billion on principal basis and net revenues of EUR 896 million for the year, ended December 31, 2022. The business has a strong order book of EUR 3 billion cumulative net revenue over the next year. SAS has total 24 manufacturing facilities across 12 countries. Europe contributing 60%, America 31%, Asia 9%, and a team of total of 5,000 people.
SAS has core competency of complete cockpit module integration, which includes entire design and set up the assembly line, routing of wiring harness, end-goal tools for testing and final supply assembled module, even from end customer plants. The close proximity with the customers and flexibility of the assembly operation may also create a natural drink tent for the business.
We will be able to further scale the business in the next couple of years with in-sourcing potential for various products that Motherson manufactures. The enterprise value is EUR 540 million to be funded by a mix of debt and internal accruals. We expect to close the transaction by the 2Q of the financial year 2024, subject to customary closing conditions and recent regulatory approvals. This includes approvals from works council and antitrust approval.
Motherson always tries to be complete solution provider to our customer by providing new products and technologies. The acquisition of SAS is an important step forward in this direction. Adding these complementary capabilities, we will be able to further enhance our Tier 0.5 position with the customers. With this transaction, Motherson will be a leading assembler of cockpit module globally and gain from increasing electrification trend in outsourcing modules. With this, we conclude our overview and we are open for the questions and answers. Thank you.
Thank you very much, sir. Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchtone phone. An operator will take your name and announce your turn in the question queue. Participants are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Jay Kale from Elara Securities. Please go ahead.
Yeah. Good morning. Thanks for taking my question and congratulations on this sizable acquisition. My first question is regarding, you know, SAS's financial position in terms of, I mean, it's a pretty impressive EBITDA margin and top line growth in the last couple of years as well. If you can just throw some light on their balance sheet in terms of their current debt position, how is the working capital? What kind of liabilities we will be taking up? As well as their plans of CapEx since we understand that they are mainly exposed to the EV OEMs, which are expected to show decent growth going forward, so we and SAMIL are largely done with our growth CapEx. Some light on the direction of CapEx for this company as well.
Kunal, can you take the balance sheet question, please?
Yeah. Hi, hi, Jay. Look, as you know, we've bought the asset for EUR 540 million. All debt and debt-like items will be deducted from this before we make the payment for the equity value. The equity value will carry the debt in the form of lease liabilities for sure as what we are aware about. It will carry elements like factoring and so on, and we have also structured it as a, you know, a defined trade working capital that we require from the asset.
What the final calculations will be obviously will be done at the closing date level, which is likely in Q2 of, you know, the ensuing financial year. That's how it is. The final payout will certainly be lower than EUR 5,000 million, just given the required carrying some amount of debt. The exactness of this will only come on basis of closing balance sheet.
Thanks, Kunal. I think, a separate question. I think the most important thing is we can understand that it's the same strategic asset. We're seeing a lot more movement towards.
I'm sorry to interrupt you, sir. Sir, your voice is breaking. Could you please use your handset to answer this question, sir?
Hi, I'm using my handset. Can you hear me or it's still breaking?
Yes, sir. This is much better. Please continue.
Like I was saying, it's a very strategic asset for the car makers. They are, you know, on a trend of outsourcing more of these cockpit modules to suppliers like us. You have to understand that these cockpit modules have to be done very close to the car makers. It's a mostly assembly process. There is no huge CapEx that is there. On a steady basis, already all the CapEx that is required for the order book that we have announced is already in there. A steady-state CapEx is somewhere around, you know, INR 50 million-INR 40 million, maybe INR 45 million in this business. Of course, if you win more modules and more orders, then more facilities will be required.
I think the good thing about this operation is that they have shown consistent growth. We are optimistic with this asset. We think we will get a lot more opportunities. It is a profitable, very well profitable asset and something that again comes with a lot of complexity. The assembly process to manage so many suppliers, to be able to produce just-in-time, just-in-sequence, just-in-line, is a very, very complex operation. The skills and the know-how are very complex and something that I think we will gain a lot and opportunity for us to grow with the customers with this business. The CapEx is much lower than our traditional business.
Understood. Understood. My next question is regarding, you know, we've seen, you know, this time around you've given this gross principal revenue basis, you know, just close to around 4x-5x of the revenues of FP&A. Just trying to understand, you know, historically also when you would have had these acquisitions, you would have had this opportunity of cross-selling, backward integration, etc , which is largely what you're indicating may be, as I understand correctly, on this gross principal revenue basis.
How different is this time around versus the historical acquisitions? Any trend that you can say that is this a bigger opportunity for you since you have more products in your stable currently which you can cross-sell, along with, you know, the integration of SAMIL as well? Any direction you can give on how significant is this backward integration opportunity for this?
Yeah, absolutely. I think you hit the nail on the head. For us it is, it's exactly that opportunity that is getting us pretty excited, apart from it's a world-class team that is coming along with it. I think you have to understand that in the past we were still, I mean, while SMP was doing the cockpit assembly business, it was a smaller size, and only with very select customers. Here, now we have got a diverse range of customers and entry to be able to again use all the backward integrations of possibilities to be able to supply more and more products from our portfolio. Also, look in the future, which are the products that are coming into the cockpits, and have a strategy to focus on them as well. So it's exactly that.
We will obviously try to bring more and more products from our side. Obviously, that takes time. You have to wait for the new orders. It's more difficult to do that with the running orders. In time, as we quote the new businesses from this, we will try to integrate more of our products and also look for opportunities of new products that we're not doing yet. It's a very exciting possibility for us by taking this asset in.
Yeah. Just one last question, if I may. you know, you know, this seems to be quite a good acquisition in terms of financials of your current company. I, if you can throw some light, if you know what drove this acquisition, you know, was it led by the customer as always? The financials seems to be pretty healthy. you know, how was it led and how was the thought process from your side as well as the client, as well as FORVIA itself, since it's quite a decently financial, healthy, company?
I can't comment too much on FORVIA. I think we have a very good relationship with them, with our customers. I think it was the customers that accept to move more into the assembly line. We see that business is growing with the car makers. FORVIA for their own reasons wanted to divest this business. You know, it was a great timing for us to really come in and to close this asset in a short period of time. We definitely have the customer support. We have spoken to our major customers.
I think again, they see a positive trend in this business growing, and we welcome to Motherson to be able to move in this direction as well. Again, like my father was saying, you know, we've always worked with our customers to find ways to improve our services, increase our product to them. Together working with them, we found a way to do that with this asset as well. Like I said, it's extremely strategic for us. It makes us the largest assembler of cockpit assemblies for our customers and will enable us to do more products in the future. It's very strategic and, you know, we're very grateful for the team and to our customers for giving us this opportunity.
Great. Thanks and all the best.
Thank you. The next question is from the line of Kapil Singh from Nomura Group. Please go ahead.
Good morning, sir, and congratulations on this acquisition. I just wanted to understand, from a value creation perspective, where is it that you see maximum opportunity? Is it revenue growth? Is it margins? Or, is it the new opportunities that will come along the way? Also, if you could share some color on what is the asset run and ROC of this business.
Kapil, you know Motherson well, you'll know that we will look at all those things. You know, please understand that, you know, we've only had a limited access to the business for the closing so far. Till after the closing, I think we will get more deeper into the assets and prepare our plans. I think again, from our side, definitely we will look at ways that we can improve the improve margins, improve efficiencies, what we can support from the group. We've always tried to do that. I think it's a great fit from what we can do from our Modules and Polymer Products division. Look, like I said, the business is a very interesting one. The growth of the business should be high.
Of course, it would all depend on the final closing, etc , everything comes out on. We maintain our 40% growth targets for this asset. Obviously, new target comes starting there. We will have to prepare a plan that will get us there and pass us that. Kunal can maybe add what numbers we're allowed to disclose to you as at closing. Kunal, could you?
Couple of things. Number one, I think you should be able to see growth here at both top line and bottom line level. The top line would also be driven mainly as we move some of the steps towards insourcing. The principal basis accounting will no longer be applicable to those, hence those top line will be visible. Secondly, on the bottom line, you know, we also expect a whole host of other forms of, you know, aspects that we can do on a module basis. For example, Faurecia only does interiors or a largely focused on interiors. We have whole front end module also that we can do. You know, we can do it with commercial vehicles and so on and so forth.
Those are additional pieces of growth that can be loaded onto the asset as well. Those are effectively what we find very exciting about this business. From an ROC perspective, you know, while the situation dictates rates and we are able to have, you know, total clarity on a clearly balance sheet basis. Right now, whatever I give you will be incorrect because by the time closing happens, you know, the picture will look a little bit different depending upon how things play out. Yesterday you described this on clearly.
Sure. Secondly, I just wanted to check on, you know, revenue, you know, gestation period from winning new orders for and that flowing into revenue. How long does it take? We are pretty close to that, you know, EUR 1 billion kind of revenue run rate per year. If I look at the order book, it's about EUR 3 billion , right? On margins also, you know, which cost elements here are passed through as per contracts and which are not, what are the risks to keep in mind?
Right. Again, the EUR 3 billion order book, just so that it is clear, is not the order book, it's the booked business. The difference being the order book that we have typically spoken about are the ones which are not in production. This is the booked business, which is what is in production. And what the EUR 3 billion tells you is effectively a line of sight available to all these revenues to come into play over the next three years. The actual order book or the actual booked business is also for a longer duration, but we can only disclose what is, you know, disclosable by the seller. And hence, this is what we can say right now, that it is EUR 3 billion over the next three years.
On an average, at least EUR 1 billion of net revenue should be visible over the next three years. What are the risks? Look, the risks are the same as what the industry is. It has again, you know, a disproportionate share from the premium end of the vehicle. It has a disproportionate share on the EV side of it. As long as the industry performs around it, you know, some of the customers we have spoken about in the presentation, as long as they perform, we don't see a risk. You know, with some of these facilities being still relatively newly set up to meet some of the increased demand from the customer space, I see the downside risk being fairly limited.
Okay, thanks. I'll come back in this.
Thank you. The next question is from the line of Kumar Rakesh from BNP Paribas. Please go ahead.
Hi. Good morning. Thank you for taking my question. My first question was around the margin of SAS, which appears to be doing much better than SAMIL's own models and polymer product business divisio n. Now my question was how are they able to achieve that? Is it driven because of their capabilities in module assembly and logistics? Can it be transferred to our own businesses and hence expand margin of our own business?
Thank you very much for that. I think, you're right. This is a different business in what we are doing in Modules and Polymers. Like I said, you know, and you referred to it as well, it's more assembly and logistics. I think. The complete attraction for us is that we are already welcoming a team that are experts in the assembly and logistics part of the entire business.
Definitely we do see capability that we can use some of our own module centers etc , which we currently outsource to be able to bring that in and bring in much higher efficiency and improve our own businesses there. That's been, you know, quite standard for Motherson in all the acquisitions that we do. We try to bring in what's best in our fold to the incoming family member and learn from the family member where we can improve as well.
Definitely, the team's job, together with me is that, in the next six months, as we close it, we understand all the strengths of the business and be able to prepare a plan that we can not only improve, the businesses that are entering the fold, but also the group businesses as well. Like I said, I think we have very high capability in managing complex, you know, suppliers that are coming to assemble the entire corporate assembly and logistics. That's something that we definitely the group will gain from.
Thanks, Laksh, for that. My second question was, if I do math, it's about EUR 700 million of opportunity through backward integration using Motherson's existing product capabilities. Based on your interaction with customers and past experience, how much of it use can be converted where OEMs will agree to change their nominated vendors?
That's the-- You know, any customer, you must appreciate that we have those relationships as well. I think the most important thing for the customer is being able to give them a complete solution at a competitive price. I think, definitely if we are able to do that, we are able to win more business from the customers and be able to direct some of this business more for ourselves. Like I said, I think it will happen more over the new programs and the new models that are going to be coming. It's gonna be something that we will plan again as we take the company forward and prepare a strategy of what we can bring really in-house.
This is a you know, more towards outsourcing of these modules, getting special suppliers to come in and do this. You understand the situation in Europe with high, you know, inflation, currency practices, etc . They really are focusing on getting more and more suppliers to do the assembly, and logistics for them, and that's a good opportunity for us. You know, definitely we have to be competitive and we have to be the best. If we're able to do that, we'll win business.
Here I just wanted to highlight, the opportunity is not only EUR 700 million, which is only the set of products that we do currently. We are really talking only about the larger verticals. As you know, we have a much, as you know, diverse set of product portfolio that exists. Some of that could be lying in others. Then this is not the only, you know, set of products that we will do forever. So whatever that we do going ahead as well in terms of new product portfolio could potentially have a synergy with this asset. In effect, the entire EUR 3.5 billion is a potential.
Got it. My final question was around in your understanding, what is the reason Faurecia has decided to sell this asset? I understand Faurecia, they are running about a $1 billion of deleveraging program, and this possibly will help them in a long way to achieve that. This business appears to be solid with strong margin and revenue visibility, so why take this particular business to sell?
How can we comment on their this thing? I mean, don't you think they're the best people to answer that?
Fair enough.
Hello?
Yeah. Thanks.
You're asking us to speculate.
Thank you. The next question is from the line of Pramod Amthe from InCred Capital. Please go ahead.
Yeah. Hi, thanks for the opportunity. Considering that there's a big difference between the cost revenue and net revenue, wanted to know, how is the working capital, who will bear it, whether the current entity or the clients carry large working capital?
Yeah. Working capital will be borne by us for the entire principal set of the business as well. Given it is a principal flow, the net working capital requirement for the principal flow will not be much.
Would you be able to disclose the number of Faurecia?
As mentioned, we've targeted this with a certain degree of working capital sell coming along with the asset. Hence, thinking from a cash flow perspective, for the current set, we do not expect and given we already defined the working capital, we do not expect incremental cash flows to get embedded, to meet working capital requirements.
Second one-.
Yeah.
Sure.
With our past, we have, you know, it's also a great potential of opportunity as well because maybe we can improve as well some of those as we move ahead. It will be a big delta just surely purely because of the sheer size of the principal set of the business.
Second question is with regard to, again, gross and net. How is the revenue recognition, or revenue in order? What is the correlation between the gross revenue and the net revenue? Is there a way to understand that better?
No perfect way. The way the principle is defined is, whatever, that this asset is doing is procuring and getting it into the product and selling it. The agent flow is driven by adding value to whatever that is being provided, whether it be in the form of, you know, some processes that are done on it, whether it be in the form of certification or that to be done on it. So there is an additional value that is provided on top of, you know, whatever that is produced or whatever that is secured. Sorry.
Okay, sure. Thanks a lot.
Thank you. The next question is from the line of Hitesh Goel from CLSA. Please go ahead.
Yes, sir. Thanks for taking my question, congratulations on a good acquisition. I just, I have two questions. First one on the, this, you know, revenue recognition in the PNL, you will report it on principal basis or net revenue basis?
On our PNL, it'll ultimately be net revenue basis.
Okay. The programs that you have won of EUR 3 billion, the OEM will have the, you know-
Yeah.
Yeah. Well, the order that we have won on this, SAS has EUR 3 billion of orders. I wanted to understand this product, the OEM parts which are a pass-through. This will be part of the contract, right? The additional order you won above EUR 3 billion, then you can do backward integration. Is my understanding right?
Yeah. Ballpark, that would be right.
Yeah. Correct, Kunal.
No. Ballpark, that would be right. This portion of the business is already booked business.
That is over three-year period, right? After that, whatever additional business now we win, we'll have negotiation with the OEMs to backward integration, right?
That's the potential. This again, I'll just repeat, this EUR 3 billion business, it is not the full booked business. This is what they disclose as visible revenue over the next year on a cumulative basis. Hence, we are only talking about the disclosures that we that the sell side is able to provide on this. In reality, the booked business will be larger than this, and so will the order book be larger than this.
Okay.
Hence from our recognition system.
Right. Thank you, Kunal. The final question only is on the market size of this assembly business of cockpit, right? What is the market share of SAS? Can you give us some sense on the industry size and market share?
Kunal, I think, we said that they have a 20% market share. They are the leading, largest independent, assembler of cockpit vehicles. 20% share. Again, that is only for cockpits. I think, they're also doing possibilities of doing other modules, which in the future, again, once we take over the asset, we'll come back to you with a lot more of these numbers, with more granularity.
Look, this is all that we are saying is in relation to what we have heard from them. It's not something that is, as you know, with the market share, this is not something that we really delved into.
Okay. Yes. Yeah. Great, Kunal. Thank you.
Thank you.
Thank you. Thank you. The next question is from the line of Jinesh Gandhi from Motilal Oswal Financial Services. Please go ahead.
Hi. First couple of clarifications. Firstly, on the accounting which will be applicable for Motherson is, will it be accounting for revenues, including the revenues which we source from third-party vendors, and net it off for what we buy in-house. Is that correct?
Sorry, Jinesh. I, yeah.
Yeah. My question is, this EUR 896 million revenues, when it gets accounted in Motherson, it will be EUR 896 plus what is being sourced from third parties of that, or it will be EUR 896 only?
It'll be EUR 896 million in our books in all likelihood. To the extent that we are insourcing some of these principal streams of revenues, those will be on top of it.
Okay.
Theoretically, if we insource EUR 200 million, then it is EUR 896 million + EUR 200 million.
Currently our supplies to SAS from SAMIL would be very, very negligible.
Almost, there would be some portion that we do, but yeah, will not be much.
Got it. Got it. Lastly, with respect to this EUR 896 million of revenue, can you talk about how much of that would be described between the actual manufacturing which you will be doing in-house versus the more about the services revenue in that? Because the services revenue would be more or less with respect to managing the entire complex value chain which they do. Whereas in-house manufacturing would be is that lesser number and managing that entire complex solution is the bigger number of this EUR 896 million.
I think Jinesh, I put you on mute.
Yeah. Jinesh Gandhi, is this some we didn't understand the question very well, yeah. It's voice coming and then going. Sorry. Could you repeat it again?
Sorry. This, of this EUR 896 million of revenue, how much would be the manufacturing portion, in-house manufacturing portion and how much would be the?
No. There is no manufacturing in this. There's no manufacturing in this. This is assembly, yeah. If we have the order, we will supply. This is a different business altogether. This is not the same business as what we are doing, yeah. I mean, I'm getting a feeling that you haven't understood. This is integrator. We are on behalf of the customer, we are assembling the whole particular thing. We are managing all the suppliers. You know, like radios or different parts of the cockpit and all that, they come in. We put that together. Depending upon what the order is, what the sequence is, it's a different business altogether.
Got it.
I am completely with SMP.
No, no. There was, I mean, I wasn't clear on that and so answer this question. Thanks. Thanks for the clarity. Thank you.
Okay. Okay.
Thank you.
Kunal, I was right, you think?
That's all right. I Yeah, I couldn't get the question either, so I will just let it pass, yeah.
Okay.
Okay. All right.
Sorry. Go ahead, please.
Thank you, sir. The next question is from the line of Chirag Shah from Nuvama. Please go ahead.
For the opportunity.
Yeah.
I have two questions. The first question is that are there any platforms or models for SAS coming up for upgradation or renewal of contracts which would give you opportunity to go into more backward integration over the next 12 months? That's how one of the drivers going to be behind the acquisition. Polymers, wiring harness, we all do in-house and 20% opportunities that you have highlighted in the presentation. Is there anything else coming on negotiation as the end of product lifecycle is coming up nearby?
The driver of this asset is not what is going to happen in the next 12 months. It's a strategic asset. If you can imagine, we will be extremely close to the customer. If you look at the asset, even in a in 2020 when COVID was there, etc , you would see the performance of the asset did not depart, not at least on a percentage margin level. It just showcases how close it is to the customer. As a player, Tier 0.5 supplier to this. And as I will come even more closer to it, and opens more doors and opportunities to do more with them. It's not for any short-term 12-month kind of insourcing related requirements for which we would have looked at this asset.
It's still a complex logistics that has to be managed for nearly EUR 5 billion of inflows. That's a pretty sizable, you know, operation, to look at it for a very, you know, short-term change. So it's a long-term strategic asset, which will help us synergize, not only what is there in our existing portfolio, but everything new that we bring in as well.
Yeah. Just to add to that, you know, it's a running business. I mean, there are 24 locations. There are multiple customers. As the models are running down, new models are coming up. There are launch of new models as well. They are constantly, they have an ability to grow. As you can see, they have been historically growing with the customer. Definitely there is a lot of opportunity to port for the new business.
Again, we need to wait for the closing to be able to lay a full strategy on which of the models that, you know, we're gonna go for, what insourcing we can have. These are all the potentials that Kunal has talked about. That's what should be setting us that, you know, we're truly a Tier 0.5 leading supplier to the car makers with access to all the assemblies of the car maker in the locations that we are and future growth opportunities with other modules.
Let me rephrase the question. This is a very interesting acquisition and it's a, it's a great capability addition, moving closer to customer. When I was looking at based on historical data, the valuations, for example, they are something very similar to CTT and I think it's also something similar to CTT as far as financials are concerned. Reasonably good asset, they're not like bankruptcy-related assets that you have bought.
I was wondering, one of the triggers could be that your EBITDA number, which is close to EUR 100 million, can suddenly shoot up simply because new models are coming for the new bidding, and where you could do more insourcing or backward integration event. That's a very near-term underlying opportunity to also exist apart from the long-term strategy that you have on this. I was coming from that perspective.
Yeah. Absolutely. I mean, it gives us the opportunity to do more, bring in more insourcing and definitely in, it's the way Motherson, you know, We will figure out a way to deliver a 40% growth in the medium to long term on this asset. Definitely we want to make sure that, you know, we have all those opportunities. Like you said, there is a lot of opportunities to bring stuff in-house that should immediately improve, the profitability of the company from where it is and bring good support.
That's why it's extremely exciting for us. It's extremely strategic for us and brings us even that much closer to our, to our car makers where we can give them a complete solution. You know, you'll have to be patient till we do the closing and come back to you, with all of these, you know, more granular points once we have full control of the asset.
Just a clarification, Kunal. You indicated that the entire working capital on this INR 4.4 billion revenue is a part of this INR 550 million EV that we have ascribed. ± based on final adjustment, I understand, but let's assume INR 540 million for the discussion purpose. That entire working capital on net basis is a part of this INR 550 million EV that you've indicated, right?
That is right.
Yeah. Lastly, on this vehicle electronics, which you have listed as a new growth areas, any more granular comment if you could have, how should we look at it? Any actionable that could happen, say, from next 12-24 months?
You know our currently 25 targets. Definitely we are on the lookout. If there are good opportunities, again, we will use our The same stated formula that we have done in the past. The customer de-risked during financial stress, going after good assets and routines. If there is a fit, definitely we will come back to you and tell you.
Again, I think the talk today is about this asset. It's a very successful close from our side. I think one key thing that you guys should look at is the concentration on EV. You can see how much of the business book is actually focused on the new vehicles that are coming and the customer support to get suppliers like us to be doing more and more assembly of these new EVs. It's a phenomenal growth area for us.
It brings in a lot of exciting opportunities. Like I said, each one of those insourcing opportunities will come once this close and come back to you, when we have a more definitive plan on it. Very exciting day for us. You know, like I said, very grateful to the customer for giving us this opportunity.
EV is a combination of polymer modules and electronics all combined, right? Is there any specific carve-out where EV has a higher concentration versus ICE in this, in overall schema things, or it's largely similar in nature?
This is a cockpit, yeah. It's not a wiring harness or-
Cockpit.
It's a cockpit.
Cockpit.
It's actually assembly of cockpit. It's...
Fair point. Yes. Thank you.
Thank you very much, Chirag.
Thank you.
Okay, thanks.
Thank you, sir. Ladies and gentlemen, as there are no further questions, I would now like to hand this conference over to Mr. VC Sehgal for closing comments. Over to you, sir.
Thank you very much. I would just advise all the people that this is a separate business altogether. Even if one of our companies or two of our companies are supplying, it's an additional job that we do with SAS. It's a value additive in the sense that bring all the liberties and all that to the Motherson. More answers will be available when we go into a close due diligence and all that.
Please have a little bit of patience with that. Because in a sense, Faurecia is our competitor, so we don't have to. We didn't get so much of similar, I think. We have enough to do in the next three, four months, and then more color will be added as to your question. Thank you all very much. Have a great day. Thank you.
Thank you, sir. On behalf of Samvardhana Motherson International Limited, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.