Potential Business Opportunities to Drive Volvo Group’s Profitability in India

Committed investment of Rs.80 billion for the group and Rs.18 billion for Volvo-Eicher joint venture planned in near future.

Volvo group will look to encash potential business opportunities as part of its growth plan in India, stated Mr. Olof Persson, President and CEO Volvo group at a recent interactive meet with infrastructure industry representatives and media in Bangalore. The meet was also attended by Mr. Philippe Divry, MD, Volvo India pvt ltd & Senior Vice President, Truck Joint Ventures Volvo group, Mr. A.M. Muralidharan, President, Volvo Construction Equipment India along with Mr.S prabhakaran, Vice President, Industrial Marine and Power Systems, Volvo Penta, Mr. Vinod Aggarwal, CEO, Volvo Eicher Commercial Vehicles (VECV), Mr. A.K. Birla, Executive Vice President-Sales, Marketing and Aftermarket, Trucks Buses and Engines, VECV along with other senior officials from Volvo.

Mentioning about the company’s future growth plan Mr. Persson says, “we have committed an investment of Rs.20 billion during the span of next five years for the entire group. While an allocation has been made for Rs.18 billion towards VECV joint venture. The former investment will be carried out to strengthen our business in construction and mining, trucks and buses whereas the later would be to strengthen our jv partnership with Eicher.” Providing details on the investment for strengthening the jv partnership with Eicher, Mr. Persson informed, “under the investment plan, we will set up a greenfield engine manufacturing at Pithampur near Eicher’s plant along with setting up a new bus body plant, paint shop and paint facility. The investment will strengthen product positioning of the entire range of Eicher’s hauler and tipper trucks.”

He added, “backed by the investment in the Eicher jv, we will look forward to expand our presence in light and medium capacity tipper trucks. Eicher’s market network in the country will be utilized to promote the same.”

Global Markets

Mr. Persson informed that, the new investments, which would enhance production capacity would enable the Volvo to make its presence in a bigger way in global markets involving Asia South East Asia and other potential markets, investment for production expansion through its own financial reserves.