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Volvo Eicher Commercial Vehicles (VECV) has acquired Volvo Buses India for Rs. 100 crore, together with its staff and the manufacturing facility in Hosakote. The integration will see a brand new bus division below VECV consolidating assets and synergies.
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The full transaction will take be accomplished over a interval of two months
Volvo Eicher Commercial Vehicles (VECV), a part of the Eicher Motors Group has introduced that it is going to be buying Volvo Buses India (VBI) for ₹ 100 crore. The announcement says the Volvo Buses India can be built-in into VECV that features the manufacturing, meeting, distribution and sale of the Swedish automaker’s bus enterprise in India, which thus far was part of Volvo Group India Private Limited. The bus manufacturing facility at Hosakote, Bengaluru and all staff below VBI can be transferred to VECV as a part of the deal. Akash Passey, Senior Vice President, Volvo Bus Corporation, has been appointed because the President of the brand new VECV bus division. He can be reporting to Vinod Aggarwal, MD and CEO, VECV.
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Speaking on the announcement, Siddhartha Lal, Chairman, VECV mentioned, “This is a momentous event and testimony to a really robust relationship between Eicher Motors and Volvo Group. Over a time frame, the Volvo model for buses in India has turn into synonymous with security and luxury in each inter-metropolis and intra-metropolis public transportation, and we’re extraordinarily proud to have this iconic model in our three way partnership. With the combination of Volvo Buses India into VECV, we purpose to form the way forward for the Indian bus business by providing the widest vary of transport options to our prospects.
As a results of the deal, a division comprising Eicher and Volvo bus enterprise can be created. The corporations have additionally confirmed that no debt of Volvo has been taken by Eicher as a part of the settlement. The integration goals at consolidating the assets and synergies between the 2 teams below the brand new bus division. The new bus enterprise is not going to solely cater to market calls for in India but additionally supply services for exports, in-line with Volvo Buses’ world portfolio.
Speaking on the combination, Hakan Agnevall, President – Volvo Bus Corporation mentioned, “We are pleased with this development of Volvo Buses in India and see it as an opportunity to further build upon the successful JV company – VECV. By consolidating the operations of Volvo Buses India into VECV, we aim to further develop our bus business and strengthen our position in the Indian bus market. The new bus division will offer a full range of modern buses covering customer needs for heavy, medium and light-duty buses,”
Adding additional, Vinod Aggarwal, MD and CEO, VECV mentioned “VECV’s robust presence within the Indian bus market with Eicher branded buses can be complemented by Volvo Buses’ distinguished place within the premium bus section. With this integration, VECV will be capable to leverage synergies within the areas of product growth, buying and manufacturing with entry to Volvo Group’s world-class know-how in buses.
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Akash Passey, Senior Vice President, Volvo Bus Corporation, mentioned, “Going forward, customers and partners can expect the same high level of customer care and world-class products from both Volvo and Eicher brands. The new division will also engage further in the dynamic Indian market driven by megatrends such as urbanization, e-mobility and connectivity.”
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VECV says the transaction can be accomplished as soon as the situations below the agreements are fulfilled. The enterprise switch is predicted 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 predicted to develop within the coming years, regardless of the setback in present occasions.
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