M&M to have global venture with SsangYong

After a hectic parley, M&M has at last got its choice from Ssang Yong for operating globally. This will make the company achieve its ambition of becoming a key global player in the industry, said its Vice Chairman. With an MOU following suit, the entire process will be over in another three months he added. The deal, it is unofficially known, may involve a huge amount in order to make Ssang Yang a debt-free company. (Ssang Yong has %640 million). M&M has a sound financial stability for acquiring this deal – a surplus fund of Rs2500 crore with the equity position of 0:3:1. In another move, M&M is diluting its stakes in companies where it has heavy investments. With this venture M&M intends to market the products of Ssang Yong- Korando and Rexton SUVs, in India . these may be manufactured locally in its Chakan plant where M&M ‘s own SUV W 201 is under development. M&M believes in its R&D set up and the link with SsangYang will further intensify its operations and increase the product platform for better marketing, he added. The company is happy with its internal engine capacity even though Ssang Yang has two plants for its with the annual capacity of 120000 units. M&M is quite happy with its sale this year, 44000 units of which half of them being overseas sale.

Leave a comment

Your email address will not be published.