Mahindra & Mahindra owes billions, SYMC has been losing money for years

Mahindra Group Company SYMC has been losing money for many years.

Mahindra & Mahindra Group (M&M Group) told the stock exchange that Korean subsidiary Sangyang Motor Company (SYMC) has a total debt of Rs 6,880 crore. In 2010, the Mahindra Group took over the loss-making company. Mahindra has a 75 per cent stake in Sangyang Motor Company.

  • News18
  • Last updated:
    15 December 2020, 9:47 PM IST

New Delhi. Mahindra & Mahindra Group (M&M Group) has said that its Korean subsidiary Sangyang Motor Company (SYMC) could not repay its debt of 60 billion won (about Rs 408 crore). The group told Indian stock exchanges on Tuesday that SYMC has about 100 billion Korean won (debt) of about Rs 6,880 crore. Of that, ० 1 billion is in JPMorgan Chase, अ 10 billion in BNP Paribas and ० 0 billion in Bank of America.

In 2010, the Mahindra Group bought the loss-making SYMC

Mahindra Group told the stock exchange that out of the total arrears, SYMC could not repay 60 billion Korean won. Mahindra & Mahindra said in April 2020 that its board had rejected a proposal to add new equity to SEMC. SYMC’s management and trade union sought funding from Mahindra & Mahindra for 500 billion Korean won (about 6 406 million) over the next three years. Let me tell you that Mahindra Group bought the loss-making SYMC in 2010.

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Attempts failed, and the company’s losses continued to grow every year

Despite all efforts, Mahindra and Mahindra could not bring SYMC out of losses and bring them into a profit making company. Explain that Mahindra has about 75% stake in SIMC. Sangyang has been losing money since 2001. The company reported a loss of 66 66 billion in 2017. However, the company had a profit of 58 58 billion in 2016. Sangyang’s deficit widened to 62 billion won in 2018 and 341 billion won in 2019.

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