Mahindra & Mahindra, on Wednesday, said it would jointly invest $900 million (nearly Rs.4,927 crore) with its Korean subsidiary Ssangyong Motor Company (SMC) to develop products over the next four years. “We will be investing $900 million in four years for development of products jointly with Ssangyong,” M&M President (Automotive and Farm Equipment Sectors) Pawan Goenka said.
This was apart from Rs.5,000 crore investment the company had planned for a three-year period ending 2014, he added. When asked about how the company plans to raise finances for the joint investment, Mr. Goenka said the expenditure to be incurred in the next one-and-a-half years would be a mix of fresh equity, debt and from internal accruals.
Mahindra & Mahindra (M&M) had acquired 70 per cent stake in SMC in March, 2011, for which it had shelled out $463 million (about Rs.2,105 crore).
Mahindra rolls out cars, pick-ups, tractors, motor cycles and commercial vehicles.
