Eicher Motors Ltd subsidiary Volvo Eicher Commercial Vehicles Ltd (VECV), recently announced that it has acquired Volvo Bus India, a division of Volvo Group India Pvt. Ltd, for about ₹100 crore.
Volvo Bus India is engaged in the business of production and sale of buses and coaches in India.
“The transaction comprises of the proposed acquisition of the bus business as a going concern on slump sale basis,” the company announced in a BSE filing.
As per the terms of the transaction, Volvo’s bus manufacturing facility at Hoskote, Bengaluru, and about 500 employees will be transferred to VECV.
“With this integration, we aim to shape the future of the Indian bus industry by offering the widest range of transport solutions to our customers. This strategy will be extended to exports, wherein the new bus division will offer products and services that are complementary with Volvo Buses’ core product portfolio in select international markets,” VECV chairman Siddhartha Lal said.
Vinod Aggarwal, Managing Director and CEO at VECV, said that after the transaction is made, VECV plans to consolidate its bus business under an all-new bus division that will be created within VECV. Akash Passey, who currently is the senior vice-president at Volvo Bus Corp, will head the said division.
“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,” said Håkan Agnevall, president of Volvo Bus Corp.
At present, Volvo Buses’ India portfolio includes the 9400 B8R 4×2 coach and the 9400 B11R 6×2 multi-axle coach. Both models are powered by BS6-compliant diesel engines. Volvo coaches are popular on inter-city routes.
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