(M&M) board has rejected a proposal to inject any fresh equity into its loss-making Korean arm SsangYong Motor Company (SYMC). The management and labour union of SYMC had sought a funding of 500 billion KRW (USD 406 Million) from the company over the next three years.
The company’s board has urged SYMC to find alternate sources of funding. However, with a view to enable SYMC to have continuity of business operations, whilst they are exploring alternate sources of funding, the board has authorised the M&M management to consider a special one-time infusion of up to 40 billion KRW (USD 32 Million) over the next three months.
M&M is the flagship company of the Mahindra Group, a multinational conglomerate based in Mumbai, India. Amongst the various business interests of its parent group, the company is mainly involved in the automobile manufacturing. It is one of the leading auto companies of India.