After completing the formalities for the acquisition of SsangYong Motor Company (SYMC), Mahindra & Mahindra (M&M) has announced the appointment of Pawan Goenka, President, Automotive & Farm Equipment sectors, M&M, as the Chairman of SYMC at a meeting of the newly appointed board of directors of the company.
Yoo-il Lee will be the new CEO, while Dilip Sundaram from Mahindra will be the new CFO.
The board of directors of SYMC includes Thierry Moulonguet, Executive Vice-President and CFO, Member of the Executive Committee, Renault from 2004-10, Kim Kihwan, Suk Suh Yoon, Dean of Ewha Women's University College of Business as independent directors.
Other directors
Other directors are: Dr. Pawan Goenka and Bharat Doshi, Executive Director & Group CFO, M&M.
Speaking on his appointment as Chairman of SYMC, Dr. Pawan Goenka said, “It is a matter of great pride for me to be appointed Chairman of one of Korea's premier automotive companies. With the support of the local management, Mahindra and SYMC will emerge as a strong force in the global utility vehicle space. “We are committed to nurturing the SsangYong brand in both the Korean and global markets and returning it to its days of glory.”
For Mahindra, the biggest benefit from this partnership will be the opportunity to harness synergies between the two companies, while protecting their respective brand identities and ensuring quality.
Synergy council
Towards this end, a synergy council comprising senior management from both companies will be established to ensure focus and delivery of synergies between the two companies. The council will focus on various aspects such as global procurement, new car development and business strategy for international markets.
Last November, M&M agreed to buy stake in the loss-making SsangYong for $464 million (Rs.2,083 crore) after emerging as the preferred bidder.
It plans to launch SsangYong branded SUVs Rexton and Korando-C brought in through the completely knocked down kit route and will assemble them at Chakan near Pune.
Going ahead, Mahindra has proposed a five-point agenda for SsangYong including strengthening product pipeline, harnessing synergies between the companies, investing in the SYMC brand, building human resources and focusing on financial stability.
For 2011, SsangYong's business plan calls for a 70 per cent investment increase in product development as compared to 2010 at over 200 billion Korean Won (Rs.800 crore) and over 40 billion Korean won (Rs.160 crore) for brand building in Korea which is a 60 per cent increase over 2010.
