Indian SUV manufacturer Mahindra & Mahindra (M&M) has formed a committee to speed up the integration with Ssangyong Motors as it has received creditors’ approval to buy out 70% stake in the Korean SUV maker. The committee consists of officials from M&M, led by its chief financial officer Dilip Sundaram, and the Korean management and members of the labour union.
The integration process will start with a communication exercise focusing on the growth strategies. Starting this February, a global consultant will take the 100 days communication programme further.
“So far, we were working on completing the acquisition process. Now we will work closely with the Ssangyong management. Work on the integration process will begin in the first week of February,” said Pawan Goenka, president of the auto and farm equipment sector, M&M.
Ssangyong has a long history of labour unrests, and M&M will have to come up with some fine strategies to synchronise with the Korean cultural sensitivities. “Any acquisition is metaphorically like a marriage which will work if you approach the other with empathy, understanding and attention. M&M will have to spend time and efforts to understand the new company’s cultural nuances,” said Sangeeth Varghese, leadership consultant and the author of Open Source Leader: Future of Leadership and Organisations.
Mahindra has hinted that it will not cut jobs. The labour union of SYMC, M&M and the South Korean company have signed a tripartite agreement that contains provisions for employment protection. M&M has decided to continue with the same Korean management, but five or six senior executives will be shifted to Korea. “We are in the process of finalising the key executives for Ssangyong,” said Mr Goenka.