VE Commercial Vehicles Ltd. (VECV) the joint venture between the Volvo Group (Volvo) and Eicher Motors Limited (EML) has announced that the JV will invest in a new plant in Bhopal for of Rs 400 crore.
“The Madhya Pradesh government has allotted land for the new plant and work to set up this plant is expected to start soon,” Eicher Motors said in a BSE filing.
“The target is to go on stream with this plant in the next 18 months at an investment of around Rs 400 crore and an initial capacity of 40,000 trucks, in addition to the capacity of 90,000 trucks at Pithampur, near Indore,” it added.
VECV is headquartered at New Delhi. This joint venture came into effect in July 2008.
Martin Lundstedt, the global CEO of the Volvo Group said “We have built a strong foundation in India and we want to do things consistently instead of looking at quick fixes or running behind volumes. India is among five major home markets for Volvo, which not only serves as a key market but a base for development and export of vehicles.”
Over the last 10 years, VECV has grown at a compounded annual growth rate of 18% and the company has consistently remained profitable. VECV has so far invested about Rs 3,500 crore in the operations and at the end of the last financial year, it had generated a turnover of Rs 10,200 crore.
With Man Trucks and Scania leaving the competitive freight-carrier industry of India, VECV will look forward to strengthen its position.
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