Mahindra Mahindra acquired Ssangyong
M&M and Ssangyong Motor Company: A Marriage of Convenience?
In March 2011 India Auto major Mahindra & Mahindra appointed Mr.(Dr.) Pawan Goenka its president for Automotive & Farm equipments sectors, M&M Ltd. as the chairman of the newly acquired Ssangyong Motor Company (SYMC). This marked closure to the final seal on the completion of the acquisition of majority stake in Ssangyong Motor Company and further removal of SYMC from Court receivership in Korea. Dr. P Goenka was quite optimistic of the newly acquired responsibility in the from of SYMC. As he sat in his office looking at the horizon from his office window at the sky he wondered about the pint where the sky would merge with the land. His thought was quickly broken by the phone call he received from SYMC’s newly appointed CEO Yoo il Lee and as he ended the conversation he looked at the automobile industry forecast after 2008 financial crisis lying on his table. He wondered how the new arrangement would sail through the future. The 2008 financial crisis had just begin to fade away but for SYMC the uncertainties and rough weather and financial uncertainties had stayed for long. He thought about the new challenge that he faced in merging the not so well SYMC with the strong M&M and turning around SYMC from red to sea of wealth and productivity. But he was confident that his new team comparing of the new CEO of SYMC and Dilip sundram the new CFO of SYMC would leave no stone unturned to create the much awaited benefits of the combination. M&M would be able to leverage upon the synergies expected to be created in the deal. He looked at his table and the papers and understood the challenging task of leadership role he had to play to take M&M and SYMC to new heights and glory in the fiercely competitive market.
Industry overview
The automobile sector in india accounts for 22% of the country’s manufacturing GDP. The sector can be segmented into passenger cars, two-wheelers, three-wheelers and commercial
In March 2011 India Auto major Mahindra & Mahindra appointed Mr.(Dr.) Pawan Goenka its president for Automotive & Farm equipments sectors, M&M Ltd. as the chairman of the newly acquired Ssangyong Motor Company (SYMC). This marked closure to the final seal on the completion of the acquisition of majority stake in Ssangyong Motor Company and further removal of SYMC from Court receivership in Korea. Dr. P Goenka was quite optimistic of the newly acquired responsibility in the from of SYMC. As he sat in his office looking at the horizon from his office window at the sky he wondered about the pint where the sky would merge with the land. His thought was quickly broken by the phone call he received from SYMC’s newly appointed CEO Yoo il Lee and as he ended the conversation he looked at the automobile industry forecast after 2008 financial crisis lying on his table. He wondered how the new arrangement would sail through the future. The 2008 financial crisis had just begin to fade away but for SYMC the uncertainties and rough weather and financial uncertainties had stayed for long. He thought about the new challenge that he faced in merging the not so well SYMC with the strong M&M and turning around SYMC from red to sea of wealth and productivity. But he was confident that his new team comparing of the new CEO of SYMC and Dilip sundram the new CFO of SYMC would leave no stone unturned to create the much awaited benefits of the combination. M&M would be able to leverage upon the synergies expected to be created in the deal. He looked at his table and the papers and understood the challenging task of leadership role he had to play to take M&M and SYMC to new heights and glory in the fiercely competitive market.
Industry overview
The automobile sector in india accounts for 22% of the country’s manufacturing GDP. The sector can be segmented into passenger cars, two-wheelers, three-wheelers and commercial
References: http://www.smotor.com/en/ir/cor_info/governance/board/index.html http://www.smotor.com/en/ir/fin_info/statements/__icsFiles/afieldfile/2012/05/24/2011_Consolidated_Audit_Report_SYMC.pdf http://www.smotor.com/en/ir/st_info/RTQ/index.html http://www.smotor.com/en/ir/fin_info/statements/__icsFiles/afieldfile/2013/05/30/2012_Consolidated_Financial_Statements.pdf http://en.wikipedia.org/wiki/SsangYong_Motor_Company