Mr. Olof PerssonOlof Persson
Philippe DivryPhilippe Divry
A. M MuralidharanA. M Muralidharan
Volvo intends to expand its presence further in the backdrop of its fifteen years of business experience in the country. According to Mr. Olof Persson, President & CEO, Volvo Group, the prolonged existence has given the company sufficient knowledge about the current and emerging requirements of the Indian markets. The company will look to take on the market requirements by adding right products to the market with one of the prime business verticals to be construction and mining sector for the Swedish identity. In a freewheeling interaction with P. P Basistha, Mr. Olof; Mr. Philippe Divry, MD, Volvo India Pvt. Ltd., and Senior Vice-president, Truck Joint Ventures India, Volvo Group; Mr. A. M Muralidharan, President Volvo CE India gave an overview of the future business roadmap charted out by Volvo to promote its Indian business followed by a committed investment of Rs.18 billion towards Volvo–Eicher joint venture and Rs.20 billion for the Volvo group spanning in five years.

Emerging Opportunities
According to Mr. Persson, "continued thrust by the government for developing the country’s mining and infrastructuring sector, provides us an ideal business opportunity with all certain aberrations to promote and expand our products portfolio in India." He said, "we intend to take on the opportunity by adding products backed by suitable branding to the same. One of the initiatives towards the direction is our joint venture tie-up with Eicher. The Volvo Eicher Commercial ‘VECV’ entity will look to tap the light and medium haulage tipper trucks comprising 16-25 tons, which have got major demand in India. The segment finds its application in various infrastructure sector and Eicher has got a major presence in this segment with its good market network. Value engineering will be done to Eicher’s tipper and hauler trucks and products line through designing products that are more suitable to Indian requirements, which will enable us to have a competitive product positioning in the market. By setting up a new fuel-efficient localized engine plant for Eicher, we’ve ensured the supporting step towards the direction."

Volvo

Higher Capacity Tipper Trucks
Marketing higher and premium capacity trucks will continue to be focus area for Volvo. According to Mr. Divry, "thrust towards premium capacity tipper trucks will continue to be our thrust area as there is a demand shift taking place towards higher capacity segment led by increasing job volumes in construction and mining which is putting up demand of equipment with faster cycle times and lesser maintenance costs. We are planning to promote the premium capacity tipper trucks through appointing dealers in potential demand pockets."

Strategies for Earthmoving and Road Construction equipment
Mentioning on Volvo, CE’s present product positioning for construction and mining sector and future strategies to promote the same, Mr. A.M. Muralidharan said, "we have got an elaborate products portfolio between 14 and 70 tons of excavators addressing varied application requirements. The 14-17 tons are for the construction market whereas 48-70 tons fit to the requirement of mining market. Support to the equipment is provided through our adequate customers support programme in place. The excavators score high on advanced-technology allowing them to deliver higher productivity. Right packaging of the product in terms of its placement along with necessary service backup, will continue to be cornerstone for promoting our earthmoving business."
"Similar would be the strategy for lucrative road construction equipment. Our portfolio for road construction equipment is quite wide. We will keep introducing newer products addressing diverse requirements. Overall, our marketing strategy for Volvo products will be through placement of advanced products, characterized by fuel-efficient engines, newer solutions backed by customized service agreements," said Mr. Muralidharan,

Volvo

Addressing Competition & Affordability
Volvo’s ability to offer right products characterizing advanced technology would keep us above competition claimed Mr. Persson. He said, "advanced technology products will allow the owners better value for the capital investment despite initial costs being higher. Our prolonged business experience for fifteen years in India will be the major tool to evaluate the present requirements and craft appropriate solutions for the same. One of the major strategies to make products affordable is the setting up of Volvo Financial Services, which is in its initial stage of planning in India. A major initiative towards making products affordable has been through our earlier tie-up with Srei Equipment Finance."
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