Media reports have been making rounds that state the plans Mahindra has for SsangYong. Since some reports can easily be misinterpreted, therefore Mahindra provided a statement to clarify.
The Board of SsangYong approves a three year business plan which will lead to a profit for the company during the year 2022. The outside funding this plan requires is 400-500 million KRW (380 – 425 million dollars) over a span of three years. 50% of this funding will be used to repay existing loans while the other 50% will be used to augment the capez required for the development of the new product. The fund which are required will be generated via the following methods – new investments, further equity investment by Mahindra, and fresh bank loans.
However, no equity investment proposal has yet been presented to the Mahindra Board of Directors. A proposal is due to the Mahindra management and all decisions regarding approval will be taken following an extensive study of the presentation and its feasibility.