Shares of Samvardhana Motherson International Ltd. (SAMIL) will be in focus on Friday’s trading session after the auto components manufacturer said that it will undertake proactive cost optimisation measures to improve operating efficiencies.

Motherson has completed 23 acquisitions since 2020 making substantial investments globally, the company said in an exchange filing.

The evolving and dynamic automotive production environment with increased complexity across the supply chain and regulatory uncertainties are driving global volatilities. To be prepared to operate in this evolving landscape and to breathe with the market, the company via its subsidiary SMRP BV, has proactively initiated a series of transformative measures in Central and Western Europe.

The series of strategic measures would include various operational initiatives and active engagement and collaboration with the local workmen representative associations and will work on defining an optimisation plan for adjusting and recalibrating the workforce in respective countries.

The proposed transformative measures will be implemented in a phased manner and would be targeting optimisation of a cost block of approximately €50 milion per annum once fully executed over the next three years.

The cost block under optimisation includes various elements such as salary, benefits, overheads, cost of leased / contract employees etc.

“This transformative effort aims to address the changing supply chain landscape and implement necessary changes while ensuring uninterrupted customer supplies. The Transformation will be carried out in compliance with all applicable regulatory norms,” the company said.

On Wednesday, shares of Samvardhana Motherson International Ltd. settled 1.59% lower at ₹113.20. The stock is down nearly 30% so far in 2025.