Volvo Buses will continue to be responsible for its brand, market and business operations while leveraging strength of the joint firm Swedish commercial vehicles major Volvo on Monday announced consolidation of its bus business in India into a group company, Volvo India Pvt. Ltd, which is also responsible for manufacturing of Volvo trucks.
“With effect from 31 December 2015, Volvo Buses India has merged into the joint company of Volvo Group in India, namely Volvo India Pvt. Ltd (VIPL),” the group said in a statement on Monday.
VIPL managing director Kamal Bali said it’s “quite natural” for all businesses and brands of the group to be part of a unified legal organization in order to harness synergies, competencies, create greater efficiencies and responsiveness at the back-end, leading to better customer experience.
Volvo Buses will, however, continue to be responsible for its brand, market and business operations while leveraging the tremendous synergies and strength of the joint company, the statement added.
The group said V.R.V. Sriprasad will continue to lead the Volvo Bus business in India. As before, he will report to AkashPassey, senior vice-president at Volvo Bus Corp.
Volvo Group in India includes multiple business areas and brands such as Volvo Buses, Volvo PentaEngines, Volvo Construction Equipment, UD Buses, Volvo Trucks and Eicher Trucks and Buses.
Eicher and Volvo trucks are sold via a joint venture company—VE Commercial Vehicles Ltd (VECV). With the consolidation, VIPL is now responsible for almost all manufacturing and business areas that make up the group globally.
It also hosts various global support and engineering services—engineering design and development, information technology support and services, accounting and logistics services, catering to both domestic and global operations of the group.
VIPL is headquartered in Bengaluru and has three manufacturing facilities near the city, namely the Volvo Trucks facility in Hosakote, Volvo and UD Bus factory in Hosakote too, and Volvo and SDLG construction equipment factory in Peenya Industrial Area. With the merger, the group has over 3,500 employees and approximately 300 sales and support points across the country, excluding operations of VECV, it said. PTI
