Mahindra Group company SYMC has been suffering losses for many years.
Mahindra & Mahindra Group (M&M Group) told the stock exchange that its Korean subsidiary Sangyang Motor Company (SYMC) owes about Rs 680 crore (debt). The loss-making company was acquired by the Mahindra Group in 2010. Mahindra has a 75 per cent stake in Sangiang Motor Company.
- Last updated:
December 15, 2020, 9:47 PM IST
The Mahindra Group bought loss-maker SYMC in 2010
Mahindra Group told the stock exchange that SYMC could not pay the debt of 60 billion Korean won out of the total balance. Mahindra and Mahindra said in April 2020 that its board had rejected a proposal to add new equity to SYMC. SYMC’s management and labor union demanded 500 500 billion (approximately 40 406 million) in funding from Mahindra and Mahindra over the next three years. Explain that Mahindra Group bought loss-making SYMC in 2010.
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Attempts failed, the company’s losses continued to grow every year
Despite all efforts, Mahindra and Mahindra could not bring SYMC out of losses and bring in a profit making company. Explain that Mahindra has about 75% stake in SYMC. Sang has been suffering losses since 2017. The company reported a 66 billion win loss in 2017. However, the company had a profit of 58 billion won in 2016. Sangsang’s deficit has widened to Rs 62 billion in 2018 and Rs 341 billion in 2019.