The firm says 80% of losses in FY 19-20 got here from International subsidiaries like SsanYong and Genze.
Mahindra acquired SsangYong in 2010 and presently holds a 75% stake within the Korean automobile maker
Mahindra at the moment introduced that the corporate has stopped investing additional into the SsangYong model and is trying to herald a brand new investor and exit the Korean vehicle participant it acquired ten years in the past in 2010. Dr. Pawan Geonka, Managing Director at Mahindra & Mahindra shared this whereas discussing the monetary outcomes of the corporate on Friday. He stated,” They (SsangYong) need a new investor and we are working with them to see that happens. Once we have an investor, Mahindra doesn’t remain the largest share holder.”
Mahindra had not too long ago infused 40 bn Korean Wons as particular one time funding into SsanYong
The firm has revealed that within the monetary yr 19-20 a good portion of its losses ( ₹ 3,049 crore) have come from worldwide subsidiaries within the Auto and farm sector. Of this, an enormous 80 per cent contribution, is simply from SsangYong and Genze, the latter of which Mahindra has already determined to exit in 6 months time. Mahindra had not too long ago infused recent 40 billion Korean Wons as a particular one time funding into SsangYong and stated the corporate managed the quarter fairly properly.
Also learn: Mahindra Board Holds Plans To Invest Fresh Equity In SsangYong
The Company has stated that it’s going to not take a look at any new acquisitions within the brief time period
Mahindra has additionally stated that it’s trying on the remaining 20 per cent loss making entities very rigorously over the following 12 months and can take acceptable selections accordingly. Talking about new investments Dr. Goenka added,”We said 2 years ago that we will break even on international business but that did not happen. So first, we will try and consolidate what we have and not look at any new acquisitions in the short term.” Earlier this yr the Mahindra board had rejected the proposal to inject recent fairness in SsangYong Motor Company the place it presently holds a 75 per cent stake.