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Home arrow Automotive arrow Volvo to invest Rs. 400 cr in India over next 5 years to expand capacity
Volvo to invest Rs. 400 cr in India over next 5 years to expand capacity Print E-mail
Written by Arjun   
Friday, 14 October 2011
Bangalore: Volvo Bus Corp, part of Volvo AB, plans to invest Rs. 400 crore over the next 5 years to expand capacity five times to 5,000 units a year. The company plans to increase capacity at its existing facility near Bangalore from 1,000 units a year to 2,500 units a year and set up a new plant to accommodate the rest.

Volvo Bus Corporation chief executive Hakan Karlsson said that the company would introduce a range of new products, including hybrid version. "We will also ramp-up our workforce to about 5,000 people by 2015 from about 1,000 presently," Volvo Buses India managing director Akash Passey said.

The company expects revenue growth of 25-30 percent in 2012. "In the next four years, India will emerge as our second largest market globally after China from being the fourth largest presently," Passey said. "Our target is to sell about 5,000 buses per annum from 2015 and increase revenue to $1 billion (Rs.4,900 crore) from Rs.560 crore in 2010, selling about 560 buses," Karlsson said. The company has projected revenue of Rs.800 crore (about 800 buses) for calendar year 2011.

"We will extend our presence in the local market and become a global hub for various selected models, as we see India emerging as one of our largest markets globally in the coming years," Karlsson said.

Volvo Bus Corp plans to double its annual global manufacturing capacity by 2015 - to 30,000 units a year from 15,000 units. Half of this capacity increase will be in Asia. It plans to make India a manufacturing and product development hub. The company has an integrated manufacturing facility on 125 acres of land at Hoskote.

Volvo has about 70 percent market share in the luxury inter-city coach segment.

Last Updated ( Friday, 14 October 2011 )
 
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