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Impact of Brexit on Mahindra Group will be muted: CFO

V S Parthasarathy Photo courtesy: www.mahindra.com V S Parthasarathy Photo courtesy: www.mahindra.com

 

  Britain's exit from the European Union will have a muted impact on the over $17 billion Mahindra Group, but the event highlights the importance of sound risk management for the corporate world, the Group said Friday.

The farm equipment to aerospace group, which has presence in the UK mostly in the IT and auto sectors, however said Brexit will result in uncertainty in the immediate aftermath which will moderate over time.

"The impact on India and Indian industries will not be significant. No impact on M&M Ltd, the impact on Mahindra Group will be muted. As a group, our 'resilience' will stand us in good stead and we are poised to take advantage of any opportunities that may emerge," Mahindra Group CFO, V S Parthasarathy said in a statement.

He further said: "Brexit, was not a black swan event, but an existing probability, which is now a reality! The result is uncertainty in the immediate aftermath which will moderate over time."

According to Parthasarathy, this event highlights the importance of sound risk management for the corporate world.

"It also reinforces the importance of institution building as a nation and within corporates. Brexit will throw up many opportunities as well," he added.

In a crucial referendum, Britain has voted to leave the EU in a deadly blow to the 28-nation bloc that triggered a panic reaction in world markets.