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Home arrow News arrow Business News arrow Volvo Construction Equipment to invest Rs 90 Cr in Indian facility
Volvo Construction Equipment to invest Rs 90 Cr in Indian facility Print E-mail
Written by Arjun   
Wednesday, 12 May 2010
Bangalore: Volvo Construction Equipment, a wholly owned subsidiary of AB Volvo, has announced a strategic investment of about INR 90 Crores in its existing facility in Bangalore, India for the production of Excavators.

This investment will allow Volvo Construction Equipment to produce medium sized excavators at the plant. These machines will primarily be models for use in the Indian market. Production of the first machines is expected to start by the end of 2011.

"Volvo Construction Equipment India currently manufactures road machinery and this new investment will help us in expanding our manufacturing footprint by adding indigenously built excavators to cater to the steeply developing market. Volvo's global technological leadership combined with benefits of local manufacturing and strong vendor base will help us in enhancing our market position," said Mrityunjaya (Jay) Singh, Managing Director of Volvo India Private Limited.

Volvo Construction Equipment in India, which started operations in December 1997 from its headquarters at Bangalore, got its first production footprint in India after the company's acquisition of Ingersoll Rand's road machinery division in the year 2008. The facility at Peenya in Bangalore currently manufactures road machinery to cater to the Indian market and also for some exports. The excavators were launched in 1998, followed by the Motor Graders and Articulated Haulers in 1999, and the Wheel Loaders in 2001.

"This investment will allow Volvo Construction Equipment to fulfil the needs of customers in the large Indian market much more effectively than we could do in the past. It is a strong sign of our commitment to the growing Indian market," said Eberhard Wedekind, President - Volvo Construction Equipment, Asia Region.

This is part of the company's objective of supporting customers in the growing BRIC (Brazil, Russia, India & China) markets.

Volvo CE's operations in India have grown through a distribution network of 11 authorised dealers who personally operate from 90 service points and 55 parts depots located across the country. The company also offers a range of soft offerings in customer support and alternative means of business including Volvo Rents and Used Equipment.

Today, Volvo CE in India is one of the top three manufacturers in terms of market share in all its served markets.

 
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