Volvo Eicher Business Autos (VECV) has acquired Volvo Buses India for Rs. 100 crore, together with its staff and the manufacturing facility in Hosakote. The combination will see a brand new bus division below VECV consolidating assets and synergies.
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The whole transaction will take be accomplished over a interval of two months
Volvo Eicher Business Autos (VECV), a part of the Eicher Motors Group has introduced that will probably be buying Volvo Buses India (VBI) for ₹ 100 crore. The announcement says the Volvo Buses India will probably be built-in into VECV that features the manufacturing, meeting, distribution and sale of the Swedish automaker’s bus enterprise in India, which to date was part of Volvo Group India Personal Restricted. The bus manufacturing facility at Hosakote, Bengaluru and all staff below VBI will probably be transferred to VECV as a part of the deal. Akash Passey, Senior Vice President, Volvo Bus Company, has been appointed because the President of the brand new VECV bus division. He will probably be reporting to Vinod Aggarwal, MD and CEO, VECV.
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Talking on the announcement, Siddhartha Lal, Chairman, VECV stated, “It is a momentous event and testimony to a really sturdy relationship between Eicher Motors and Volvo Group. Over a time period, the Volvo model for buses in India has grow to be synonymous with security and luxury in each inter-city and intra-city public transportation, and we’re extraordinarily proud to have this iconic model in our three way partnership. With the mixing of Volvo Buses India into VECV, we intention to form the way forward for the Indian bus business by providing the widest vary of transport options to our clients.
Vinod Aggarwal (in pic) MD and CEO – VECV will proceed to steer the group with Akash Passey, Sr. VP – Volvo Bus Company, has been appointed because the President of the brand new VECV bus division
On account of the deal, a division comprising Eicher and Volvo bus enterprise will probably be created. The businesses have additionally confirmed that no debt of Volvo has been taken by Eicher as a part of the settlement. The combination goals at consolidating the assets and synergies between the 2 teams below the brand new bus division. The brand new bus enterprise won’t solely cater to market calls for in India but in addition provide services for exports, in-line with Volvo Buses’ world portfolio.
Talking on the mixing, Hakan Agnevall, President – Volvo Bus Company stated, “We’re happy with this growth of Volvo Buses in India and see it as a chance to additional construct upon the profitable JV firm – VECV. By consolidating the operations of Volvo Buses India into VECV, we intention to additional develop our bus enterprise and strengthen our place within the Indian bus market. The brand new bus division will provide a full vary of contemporary buses overlaying buyer wants for heavy, medium and light-duty buses,”
Volvo will proceed constructing its vary of premium buses in India with the brand new enterprise to discover newer segments
Including additional, Vinod Aggarwal, MD and CEO, VECV stated “VECV’s sturdy presence within the Indian bus market with Eicher branded buses will probably be complemented by Volvo Buses’ outstanding place within the premium bus phase. With this integration, VECV will have the ability to leverage synergies within the areas of product growth, buying and manufacturing with entry to Volvo Group’s world-class expertise in buses.
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Akash Passey, Senior Vice President, Volvo Bus Company, stated, “Going ahead, clients and companions can count on the identical excessive degree of buyer care and world-class merchandise from each Volvo and Eicher manufacturers. The brand new division may even have interaction additional within the dynamic Indian market pushed by megatrends corresponding to urbanization, e-mobility and connectivity.”
India stays one of many prime three bus markets globally
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VECV says the transaction will probably be accomplished as soon as the circumstances below the agreements are fulfilled. The enterprise switch is anticipated to be accomplished throughout the subsequent two months. VECV additionally confirmed that the Hosakote plant will work independently of the producer’s Pithampur facility. The CV maker has additionally hinted on the new enterprise venturing into newer segments together with electrical mobility sooner or later. India stays one of many prime three bus markets globally and is anticipated to develop within the coming years, regardless of the setback in present instances.
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