M&M on high spirits with its allegiance to Ssang Yong
M&M has at last entered into a MoU with the Korean Ssang Yong for staking its claim in the Korean market. However, the details about the deal are to be disclosed. All formalities in this regard will be sorted out soon, said the officials jointly. M&M’s cash reserve is Rs2500 crore and the debt-equity ratio is safe to enter into such an MoU. The take over will not affect Ssang Yong’s work force nor its financial status.
M&M’s own ventures include an investment of Rs9500 croresf for the five years from 2008-2013, said its President. There will be new automobile manufacturing platforms and 12 products are on the cards during the coming five years, he added. M&M is quite happy to join hands with Ssang Yong to promote the product ranges in the global markets, he said. The deal pact will materialize in another three months and the Korean company will continue its operations independently.
M&M will import some best models of the Korean company to India including Korando C. Ssang Yong has to its credit, seven vehicle models comprising two large sized sedans, four SUVs and a MUV spread on 5 brands. In addition there are making of engines of both version, petrol and diesel and axles. Ssangyong has a long tradition in the field and the recent hiccups made the company to take a roundabout. The major tussle is coming from its labors, which is yet to be solved, and of course it has come off with EBITDA during the Q1 of 2010-11, a feat after seven quarters, said a report from Korea.