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Volvo Bus Corp to make India export hub, targets $1 billion revenue in 5 years
Bangalore: Volvo Bus Corporation plans to make India a global manufacturing and product development hub for Volvo buses. Rune Lundberg, senior vice president, VBC, said that the company would establish a substantial industrial presence in India and that India would be Volvo's third global hub, after Europe and Mexico.
Volvo Buses India Private Limited also announced the 100% buyout of Azad Group share, its JV partner since 2008, thereby increasing Volvo Buses' stake from the current 70% to 100% ownership. This strategic move will provide Volvo Buses greater flexibility to expand and put in place ambitious growth plans in the coming years.
To cater to the growing future demand and plans, Volvo Buses will augment its factory and establishment with new facilities for refurbishment operations, Customer Experience Lounge, New Integral production principles, a Competence Development Centre and Expand the paint shop. The Hosakote facility will thus expand almost 100% and will also result in a 30% increase in manpower in the coming two years.
The company will invest an additional Rs 100 crore over the next two years, on capacity expansion. VBC had invested Rs 100 crore in the JV for setting up its plant at Hoskote in 2008. The company currently employs nearly 1000 people in India.
The plant will ramp up capacity from 1,000 to 5,000 over a five-year period, said Akash Passey, managing director of Volvo Buses India.
The company will also increase it's sourcing footprint in India and plans to make India a sourcing hub for the rest of the Volvo buses. The bus-body is currently 100 percent localised, with sheet metal, FRP and other interior components procured locally in India. The company is now looking at sourcing chassis components in India.
"We are looking at increasing the number of suppliers in India," said Rune Lundberg.
Volvo Buses India will step up on its exports from 2011. Exports will account for 25-30% of total volumes of India over the next few years, over the current 5%.
Volvo started developing it's R&D capability in India in 2009. "Volvo will increase it's R&D capability in India due to the high skill level of the technicians," said Akash Passey.
In five years the company hopes to achieve a revenue of US $1 billion. The company expects to clock a revenue of about $111 million in 2010. The growth will be driven by further expansion of hi-tech buses in India, the volume segment and exports said Akash Passey.
The company will achieve a 20-25 percent revenue growth this year.
Bangalore: Volvo Bus Corporation plans to make India a global manufacturing and product development hub for Volvo buses. Rune Lundberg, senior vice president, VBC, said that the company would establish a substantial industrial presence in India and that India would be Volvo's third global hub, after Europe and Mexico.
Volvo Buses India Private Limited also announced the 100% buyout of Azad Group share, its JV partner since 2008, thereby increasing Volvo Buses' stake from the current 70% to 100% ownership. This strategic move will provide Volvo Buses greater flexibility to expand and put in place ambitious growth plans in the coming years.
To cater to the growing future demand and plans, Volvo Buses will augment its factory and establishment with new facilities for refurbishment operations, Customer Experience Lounge, New Integral production principles, a Competence Development Centre and Expand the paint shop. The Hosakote facility will thus expand almost 100% and will also result in a 30% increase in manpower in the coming two years.
The company will invest an additional Rs 100 crore over the next two years, on capacity expansion. VBC had invested Rs 100 crore in the JV for setting up its plant at Hoskote in 2008. The company currently employs nearly 1000 people in India.
The plant will ramp up capacity from 1,000 to 5,000 over a five-year period, said Akash Passey, managing director of Volvo Buses India.
The company will also increase it's sourcing footprint in India and plans to make India a sourcing hub for the rest of the Volvo buses. The bus-body is currently 100 percent localised, with sheet metal, FRP and other interior components procured locally in India. The company is now looking at sourcing chassis components in India.
"We are looking at increasing the number of suppliers in India," said Rune Lundberg.
Volvo Buses India will step up on its exports from 2011. Exports will account for 25-30% of total volumes of India over the next few years, over the current 5%.
Volvo started developing it's R&D capability in India in 2009. "Volvo will increase it's R&D capability in India due to the high skill level of the technicians," said Akash Passey.
In five years the company hopes to achieve a revenue of US $1 billion. The company expects to clock a revenue of about $111 million in 2010. The growth will be driven by further expansion of hi-tech buses in India, the volume segment and exports said Akash Passey.
The company will achieve a 20-25 percent revenue growth this year.
