Volvo India and SREI BNP Paribas Enter into a Financial Pact

Volvo construction equipment

Entity to support Volvo's expansion plans in India

P.P.Basistha


Volvo India Private Limited and SREI BNP Paribas have announced the formation of financial alliance recently in Bengaluru. The collaboration was announced by Mr. John. G. Rakocy, President, Volvo Financial Services and Mr. D.K. Vyas, CEO, SREI Equipment Finance. The alliance will be branded as Volvo Financial Services (VFS) in India.

Mentioning about the tie up Mr. Rakocy said, "The new alliance will enable Volvo to offer complete financial solution through SREI BNP Paribas thereby expanding the market presence of Volvo. Further, the collaboration will provide value to Volvo's existing customers in India allowing us to consolidate our market presence." Mr. Vyas said, "SREI Equipment Finance has been providing financial support for Volvo's construction equipment business, ever since the company launched its excavators in 1998 followed by the launch of motor graders and articulated haulers in 1999. The new collaboration will allow both companies to address new growth opportunities by developing co-branded financing programmes for customers of the Volvo Group and SREI BNP Paribas. "The alliance will be backed up by SREI's twenty-two years expertise in equipment finance, dynamic retail financial packages, asset base of over 12,000 crores supported by a strong national presence with a network of over 87 offices across India.

Volvo construction equipment

VFS is the global finance arm of the Volvo group-manufacturing construction equipment, trucks, buses, drive systems for marine and industrial applications, aerospace components and services and heavy diesel engines from 9-18 litres capacity.VFS was formed in 2001. Its headquartered is in Greensboro, North Carolina, USA with assets over $14 billion and presence in over 40 countries across Asia Pacific, Europe, and US.

Under the agreement, VFS-SREI will finance range of Volvo's products in India through its dealers. Mr. Vyas informed, "To support the alliance, SREI has set up a dedicated team to provide support to Volvo's dealers. The team will look after the disbursal of the finance and collection of the debt." He said, "Making the finance available, bankability of the project where the equipment is going to be deployed will be taken into account, projected cash flow from the project will be seen, the credit worthiness of the buyer will also be evaluated. There would be certain additional tests which the buyer opting to buy Volvo construction equipment would have to pass through. However, our broader objective will be to make the equipment affordable to the buyer. There would be provisions of leasing out the equipment as well."

Volvo construction equipment
The collaboration will also offer assistance to get the commercial vehicles financed pertaining to low and medium duty Eicher Trucks and buses in India with a range of 5-40 tons. Volvo has a joint venture with VE Commercial vehicles-a joint venture between Volvo group and Eicher Motors. VECV joint venture includes the complete range of Eicher's commercial vehicles, components and engineering design business as well the sales and distribution of Volvo trucks. The joint venture has over 7500 employees with sales and support network at 300 points in the country.

Mr.Rackocy said, Volvo will assist the alliance with SREI into a joint venture and is in the process of outlining a three year programme.

A.M.Muralidharan
Speaking to NBM&CW on the sidelines of the event, Mr. A.M.Muralidharan, Managing Director, Volvo India Pvt limited said, "The tie up will provide benefit to our existing dealers by allowing them to provide financial support to retail customers and first time buyers of Volvo equipment. Significantly, the financial collaboration will facilitate our dealers in offering better parts and annual maintenance contract support. Not to mention, it will support proliferation of our new range of construction equipments which is very much in process." Volvo CE does business in India through a distribution network of 13 authorized dealers who operate through 102 service points and 50 service branches.

NBMCW June 2011

Click Here
To Know More / Contact The Manufacturer
Please provide your details we will contact you as soon as possible
Please let us know your name.
Invalid Input
Please let us know your Designation.
Invalid Input
Please let us know your City.
Please let us know your State.
Please let us know your Country.
Please let us know your Contact Number.
Please let us know your email address.
Please brief your query.

Escorts Showcases India's First Hybrid Backhoe Loader & Tractor at Esclusive 2019

At Esclusive 2019, Escorts' annual innovation platform, Escorts Limited announced India's first Hybrid Concept Backhoe and Tractor powered by both fuel and battery, and in the range of 70-75 HP, which can be boosted up to 90 HP with the help Read More ...

World Tunnel Congress 2020

Preparations for the World Tunnel Congress (WTC) and 46th ITA General Assembly 2020 in Kuala Lumpur are in full swing at the Kuala Lumpur Convention Centre (KLCC). “Registration should be made as soon as possible due to the early bird Read More ...

India Off Highway Vehicle Summit 2019, Pune

To be held from 27-28 November, the Summit will provide the right knowledge platform to government officials, executives and experts engaged in national and international projects. India’s construction equipment market is soaring with rapid Read More ...

World Infrastructure Congress 2019

Development in the real estate and infrastructure industry has undergone a dynamic progression over the last decade and is moving towards a positive revolution in the near future. Even though the industry has faced multiple challenges Read More ...

Demtech 2019

India’s first demolition conference, Demtech, to be held on 13 Nov 2019 at Hotel Sahara Star in Mumbai. The event will highlight demolition, recycling and remediation amongst professionals in the construction industry. Formation of the IDA Read More ...

CNH Industrial announces ‘Transform 2 Win’ Business Strategy at New York Investor Day

CNH Industrial N.V. announced its new five-year 2020 – 2024 business plan ‘Transform 2 Win,’ at its Capital Markets Day event in New York, U.S.A. wherein the company presented a detailed strategy to transform its structure and performance Read More ...

LINNHOFF and GMMCO Enter Exclusive Distribution Alliance

In a strategic marketing alliance, LINNHOFF India, a leading manufacturer of asphalt mixing, has formed a dealership alliance with GMMCO, a leader in infrastructure development. Under the partnership, GMMCO will undertake exclusive sales Read More ...

Volvo Trucks Command Center Preventing Downtime

The new centralized Volvo Trucks Uptime Center in Bangalore is rendering end-to-end services for ensuring higher availability of its trucks by reducing incidences of breakdowns. P.P. Basistha visits the state-of-the-art facility to see firsthand Read More ...

Cat launches financial arm in India; opens up business opportunities for customers

Caterpillar, a global major manufacturer of earthmoving equipment, is committed to offer financial and extended protection services and solutions to its customers. Towards this end, it has launched its financial arm in India – the company Read More ...

CTBUH India Challenges in Elevatoring in India

CTBUH India, the country chapter of CTBUH – a not-for-profit organization with headquarters in Shanghai, Venice, and Chicago, recently organized a conference on the challenges and opportunities of elevatoring in the Indian context Read More ...

DBIN Hosts Financiers Meet

The sale of Compact Construction Equipment is gaining momentum in India and, therefore, easy availability of financing options for customers is inevitable. Doosan Bobcat India (DBIN), the Indian subsidiary of the global leader in compact Read More ...

World of Concrete Asia 2019 unfolding new segmentation & participating brands

World of Concrete Asia - a leading concrete and masonry industry exhibition, will be held on December 11-13, 2019 in Shanghai New International Expo Center. The show will be visited by domestic and foreign contractors, subcontractors, real estate Read More ...

Conference on Technological Advances in Concrete Pavements & Bridges Organised by ICI (Hyderabad) Telangana Centre

Indian Concrete Institute (Hyd) Telangana Center had organized a one-day national conference on “Technological Advances in Concrete Pavements & Bridges” on 6 July 2019 at Hotel Best Western Ashoka, Hyderabad. It was inaugured Read More ...

CII Excon 2019 Biggest Festival of Construction Equipment Industry

The Confederation of Indian Industry (CII) has announced the 10th edition of EXCON - South Asia’s largest construction equipment trade fair, to be held in Bengaluru from December 10-14, 2019. The flagship initiative of CII in the construction Read More ...

Belt & Road Business Summit on Infrastructure and Construction Machinery organized by CCCME

CCCME's Belt & Road Business Summit held during CICEE exhibition in Changsha, was attended by senior officials from the embassies of the different countries in China. They discussed issues concerning infrastructure and construction Read More ...

Zoomlion Showcases 66 machines & Smart Technology

Zoomlion displayed its manufacturing strength, smart technology and 66 new 4.0 series products. The range included concrete machinery, cranes, earthmoving machinery, aerial work machinery, industrial vehicles, and its overseas Read More ...
NBM&CW

New Building Material & Construction World

New Building Material & Construction World
MGS Architecture

Modern Green Structures & Architecture

Modern Green Structures & Architecture
L&ST

Lifting & Specialized Transport

Lifting & Specialized Transport
II&TW

Indian Infrastructure & Tenders Week

Indian Infrastructure & Tenders Week