Mahindra & Mahindra (M&M), the country’s largest utility vehicles manufacturer, plans to invest 200

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billion Korean won (around Rs 800 crore) for product development and 40 billion KRW (around Rs 160 crore) on brand building in 2011 following its acquisition of South Korea’s SsangYong Motor Company (SYMC).

In a statement issued on Tuesday, M&M said that it has completed all formalities related to its acquisition of ajority stake in SsangYong. These investments amount to a 70 per cent increase in product development and 60 per in brand building expenditure over 2010.

M&M has appointed Yoo-il Lee as the new CEO of SYMC, and Dilip Sundaram from Mahindra as chief financial officer.

Pawan Goenka, president - automotive & farm equipment, M&M, said in the statement that the two companies would now go in for joint product and technology development and synergy in global operations and purchase.

Mahindra has already begun market research to launch SsangYong’s premium sports utility vehicles like Rexton and Korando-C in India. The exact dates for the India debut of the two SUVs is likely be announced in two or three months, Goenka told Dow Jones.

M&M is also considering the possibility of Mahindra Finance setting up operations in Korea to enhance the sales of SsangYong vehicles, the company said.

M&M had signed a definitive agreement to acquire 70 per cent stake in SYMC for $463 million (around Rs 2,110 crore) in November last year. “Mahindra is extremely conscious of SYMC’s Korean heritage and would only want to enhance it. SsangYong will be an independently run Korean company — with largely Korean management, and will remain a ‘Made in Korea’ brand,” Goenka said.

M&M has set up a synergy council comprising senior management from both companies to ensure focus and delivery of synergies. “The council will focus on various aspects such as global procurement, new car development and business strategy to penetrate international markets,” the statement added.

Amit Kasat, auto analyst, Standard Chartered Equity Research, said, “The acquisition is also expected to result in swapping of product platform and there is a possibility that products sold in the domestic market might be launched in the South Korean market. But it will happen over a period of time.”