To streamline operations and create synergies across product segments following the acquisition of South Korean SUV maker SsangYong Motors, the country’s largest utility player Mahindra & Mahindra has charted a new management strategy.
As per the plan, while SsangYong would continue to have an independent management structure comprising its officials, M&M is going to set up a joint task force which would have representation from both the companies to oversee joint production plans. President (automotive & farm equipment sector) M&M Pawan Goenka told FE that this “formal mechanism” formed part of the company’s attempts to leverage from the partnership.
“We are going to have a formal mechanism for aligning operations between the two companies,” said Goenka. He said that the M&M-SsangYong alliance would see the introduction of two SsangYong products in the country.
While Goenka did not share the names of the models, industry sources said that Korando and Rexton — the two premium SUVs from the Korean company — are the most likely products to hit India by the end of the year.
Earlier this week, M&M met creditors including Barclays Bank and Korean Development Bank to fund the 70% buy of the firm for $460 million. Reports suggest around seven senior executives of M&M would be working with the Korean management. The company would meet on January 28 in Seoul to meet the secured as well unsecured creditors along with the vast supplier base of SsangYong. As per the understanding, M&M has already put in 10% of the purchasing price of Ssangyong. The remaining 90% would be deposited once the company gets the final approval from the court.