Auto major Mahindra & Mahindra today said its President for Automotive and Farm Equipment sectors Pawan Goenka has been appointed as the Chairman of the newly acquired Korean firm SsangYong Motor.
In a statement, the company said a meeting of the newly appointed board of SsangYong Motor (SMC) has approved Goenka's appointment as its Chairman.
"This is in furtherance to M&M announcing that it has completed all formalities related to acquisition of a majority stake in SMC," the statement said.
SMC's new CEO is Yoo Il Lee and Dilip Sundaram from M&M has been appointed as the Korean firm's new CFO.
The newly appointed board has three independent directors, which includes ex-Renault Vice-President and CFO Thierry Moulonguet, Korea's former Ambassador-at-large for Economic Affairs, Kim Kihwan and Dean of Ehwa Women's University College of Business, Suk Suh Yoon.
Besides, SMC will be represented on its board by the new CEO Lee, while M&M Executive Director and Group CFO Bharat Doshi is the other member of the board of SMC, apart from Goenka himself.
On Tuesday Mahindra, which emerged as the preferred bidder for SsangYong in August 2010, said it has completed all processes to acquire 70% stake in SMC, for which it has shelled out $463 million (about Rs 2,105 crore).
With the new management taking control, SMC will invest over 240 KRW (nearly Rs 960 crore) this calendar year on product development and brand building.
The firm will increase investment in product development by 70% in 2011, as compared to the last year, at over KRW 200 billion (over Rs 800 crore).
It will also invest over 40 billion KRW (about Rs 160 crore) for brand building in Korea -- a 60% increase over 2010 -- and increase overseas brand investment by over four times in 2011.
