You are here: Home » News-CM » Equities » Hot Pursuit
Business Standard

M&M gains after Ssangyong forms joint venture with Chinese company

Capital Market 

(M&M) rose 0.25% to Rs 1,379.05 at 1:20 on after the company announced that Ssangyong Motor Company signed letter of intent for joint venture with Shaanxi Automobile Group of China.

The announcement was made on Wednesday, 12 October 2016. The market remained shut on that day.

Meanwhile, the S&P Sensex was down 300.97 points or 1.07% at 27,777.86.

On BSE, so far 19,883 shares were traded in the counter as against average daily volume of 73,077 shares in the past one quarter. The stock hit a high of Rs 1,384.90 and a low of Rs 1,353.05 so far during the day. The stock had hit a record high of Rs 1,508.80 on 9 August 2016. The stock had hit a 52-week low of Rs 1,092 on 12 February 2016. The stock had underperformed the market over the past one month till 10 October 2016, falling 6.31% compared with Sensex's 2.48% fall. The scrip had also underperformed the market in past one quarter, declining 5.03% as against Sensex's 3.52% rise.

The large-cap company has equity capital of Rs 310.55 crore. Face value per share is Rs 5.

SsangYong Motor Company, a part of Mahindra group announced that as part of its effort to grow in China, the company signed a letter of intent (LOI) with the Shaanxi Automobile Group for a 50:50 joint venture that will establish a local production plant for completely built unit (CBU) vehicle. The joint venture, which will become SsangYong's first overseas production base, in a 50/50 partnership with the Shaanxi Automobile Group, will construct production facilities for CBU vehicles and an engine plant on a site with an area of 1.23 million square meters in the Xi'an Economic and Technological Development Zone in Xi'an. The first phase of construction will establish a plant with an annual capacity of 1.5 lakh units per year by the end of 2019 end the second phase will involve an expansion of the facilities to 3 lakh units annually. With a local production facility in China, Ssangyong will gain new growth momentum to become a strong global SUV manufacturer.

Further, SsangYong will establish an automotive cluster with its major suppliers that will also enter the market, to ensure product competitiveness, and start the production of SsangYong's current models and models under development, in the second half of 2019. With the signing of LOI for a joint venture, Ssangyong and Shaanxi will form a team to work on the project and discuss the details for the establishment of a joint venture. Next steps will also involve obtaining the approval from the Ssangyong's board of directors, the government of Shaanxi province and Xi'an as well as the central government of China.

M&M's net profit rose 12.4% to Rs 955.21 crore on 12.3% growth in net sales to Rs 10898.08 crore in Q1 June 2016 over Q1 June 2015.

M&M enjoys a leadership position in tractors and utility vehicles in India.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

RECOMMENDED FOR YOU

M&M gains after Ssangyong forms joint venture with Chinese company

Mahindra & Mahindra (M&M) rose 0.25% to Rs 1,379.05 at 1:20 Ist on BSE after the company announced that Ssangyong Motor Company signed letter of intent for joint venture with Shaanxi Automobile Group of China.

(M&M) rose 0.25% to Rs 1,379.05 at 1:20 on after the company announced that Ssangyong Motor Company signed letter of intent for joint venture with Shaanxi Automobile Group of China.

The announcement was made on Wednesday, 12 October 2016. The market remained shut on that day.

Meanwhile, the S&P Sensex was down 300.97 points or 1.07% at 27,777.86.

On BSE, so far 19,883 shares were traded in the counter as against average daily volume of 73,077 shares in the past one quarter. The stock hit a high of Rs 1,384.90 and a low of Rs 1,353.05 so far during the day. The stock had hit a record high of Rs 1,508.80 on 9 August 2016. The stock had hit a 52-week low of Rs 1,092 on 12 February 2016. The stock had underperformed the market over the past one month till 10 October 2016, falling 6.31% compared with Sensex's 2.48% fall. The scrip had also underperformed the market in past one quarter, declining 5.03% as against Sensex's 3.52% rise.

The large-cap company has equity capital of Rs 310.55 crore. Face value per share is Rs 5.

SsangYong Motor Company, a part of Mahindra group announced that as part of its effort to grow in China, the company signed a letter of intent (LOI) with the Shaanxi Automobile Group for a 50:50 joint venture that will establish a local production plant for completely built unit (CBU) vehicle. The joint venture, which will become SsangYong's first overseas production base, in a 50/50 partnership with the Shaanxi Automobile Group, will construct production facilities for CBU vehicles and an engine plant on a site with an area of 1.23 million square meters in the Xi'an Economic and Technological Development Zone in Xi'an. The first phase of construction will establish a plant with an annual capacity of 1.5 lakh units per year by the end of 2019 end the second phase will involve an expansion of the facilities to 3 lakh units annually. With a local production facility in China, Ssangyong will gain new growth momentum to become a strong global SUV manufacturer.

Further, SsangYong will establish an automotive cluster with its major suppliers that will also enter the market, to ensure product competitiveness, and start the production of SsangYong's current models and models under development, in the second half of 2019. With the signing of LOI for a joint venture, Ssangyong and Shaanxi will form a team to work on the project and discuss the details for the establishment of a joint venture. Next steps will also involve obtaining the approval from the Ssangyong's board of directors, the government of Shaanxi province and Xi'an as well as the central government of China.

M&M's net profit rose 12.4% to Rs 955.21 crore on 12.3% growth in net sales to Rs 10898.08 crore in Q1 June 2016 over Q1 June 2015.

M&M enjoys a leadership position in tractors and utility vehicles in India.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

M&M gains after Ssangyong forms joint venture with Chinese company

(M&M) rose 0.25% to Rs 1,379.05 at 1:20 on after the company announced that Ssangyong Motor Company signed letter of intent for joint venture with Shaanxi Automobile Group of China.

The announcement was made on Wednesday, 12 October 2016. The market remained shut on that day.

Meanwhile, the S&P Sensex was down 300.97 points or 1.07% at 27,777.86.

On BSE, so far 19,883 shares were traded in the counter as against average daily volume of 73,077 shares in the past one quarter. The stock hit a high of Rs 1,384.90 and a low of Rs 1,353.05 so far during the day. The stock had hit a record high of Rs 1,508.80 on 9 August 2016. The stock had hit a 52-week low of Rs 1,092 on 12 February 2016. The stock had underperformed the market over the past one month till 10 October 2016, falling 6.31% compared with Sensex's 2.48% fall. The scrip had also underperformed the market in past one quarter, declining 5.03% as against Sensex's 3.52% rise.

The large-cap company has equity capital of Rs 310.55 crore. Face value per share is Rs 5.

SsangYong Motor Company, a part of Mahindra group announced that as part of its effort to grow in China, the company signed a letter of intent (LOI) with the Shaanxi Automobile Group for a 50:50 joint venture that will establish a local production plant for completely built unit (CBU) vehicle. The joint venture, which will become SsangYong's first overseas production base, in a 50/50 partnership with the Shaanxi Automobile Group, will construct production facilities for CBU vehicles and an engine plant on a site with an area of 1.23 million square meters in the Xi'an Economic and Technological Development Zone in Xi'an. The first phase of construction will establish a plant with an annual capacity of 1.5 lakh units per year by the end of 2019 end the second phase will involve an expansion of the facilities to 3 lakh units annually. With a local production facility in China, Ssangyong will gain new growth momentum to become a strong global SUV manufacturer.

Further, SsangYong will establish an automotive cluster with its major suppliers that will also enter the market, to ensure product competitiveness, and start the production of SsangYong's current models and models under development, in the second half of 2019. With the signing of LOI for a joint venture, Ssangyong and Shaanxi will form a team to work on the project and discuss the details for the establishment of a joint venture. Next steps will also involve obtaining the approval from the Ssangyong's board of directors, the government of Shaanxi province and Xi'an as well as the central government of China.

M&M's net profit rose 12.4% to Rs 955.21 crore on 12.3% growth in net sales to Rs 10898.08 crore in Q1 June 2016 over Q1 June 2015.

M&M enjoys a leadership position in tractors and utility vehicles in India.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard