Volvo Construction Equipment invests Rs90 crore in Bangalore
12 May 2010
Volvo Construction Equipment, a wholly-owned construction equipment manufacturing subsidiary of Sweden's AB Volvo, is beefing up its existing manufacturing facility in Bangalore, with an an investment of Rs90 crore.
The investment will enable Volvo Construction to produce medium-sized excavator models at the plant primarily for use in the Indian market, it said.
Volvo Construction Equipment in India currently manufactures road machinery.
Production of the first machines is expected to start by the end of 2011.
"This new investment will help us in expanding our manufacturing footprint by adding indigenously built excavators to cater to the steeply developing market," says Mrityunjaya (Jay) Singh, managing director, Volvo India Private Limited.
The Indian subsidiary hopes to leverage its parent's global technological leadership with local manufacturing and strong vendor base in India to enhance its market in the country.
Bangalore-headquartered Volvo Construction started operations in December 1997, and introduced its excavators 1998, followed by motor graders and articulated haulers in 1999, and wheel loaders in 2001. It's manufacturing base in the company came into existence through the acquisition of the Indian operations of Ingersoll Rand's road machinery division in 2008.
Eberhard Wedekind, president, Volvo Construction Equipment, Region Asia, ''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.''
