The Mahindra group company SYMC has been incurring losses for many years.
Mahindra & Mahindra Group (M&M Group) told the stock market that its Korean subsidiary Sangyang Motor Company (SYMC) owes a total debt of about Rs 680 crore (Debt). Mahindra Group acquired this loss-making company in 2010. Mahindra holds a 75 percent stake in Sangyang Motor Company.
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December 15, 2020, 9:47 PM IS
Mahindra group bought loss-making SYMC in 2010
The Mahindra Group told the stock market that out of this total outstanding, SYMC could not repay 60 billion Korean Won’s debt. Mahindra & Mahindra said in April 2020 that its board had rejected the proposal to add fresh equity to SYMC. The management and labor union of SYMC demanded funding of 500 billion Korean Won (about 406 million dollars) from Mahindra & Mahindra for the next three years. Explain that the Mahindra Group bought the loss-making SYMC in 2010.
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Efforts failed, the company’s losses kept increasing every year
Even after all the efforts, Mahindra and Mahindra could not bring SYMC from losses and bring them into Profit Making Company. Explain that Mahindra has about 75 percent stake in SYMC. Sangyang has been incurring losses since 2017. The company reported a loss of 66 billion won in 2017. However, the company had a profit of 58 billion won in 2016. Sangyang’s deficit increased to 62 billion won in 2018 and 341 billion won in 2019.