Volvo Buses India Private Limited has bought out the entire share of Azad Group in the company. Azad Group has been Volvo’s JV partner in India since 2008. With the buyout, Volvo Buses has raised its stake from 70% to 100% in the company. The move, according to an official statement, will help Volvo Buses to put in place its growth plans for the country. The company has also announced that it sees an increase of 100% in its production by 2012. Volvo is witnessing great growth in the Indian market; the latest testimony to the fact came in the form of a 100-bus order from VRL logistics.
As a part of its growth plan, Volvo Buses is planning new facilities for refurbishment operations. The company also plans customer experience lounges, a competence development centre and will expand its paint shop. Volvo Buses’ Hosakote facility is planned to expand almost 100% and will also see an increment of 30% in its manpower. The company is focusing singularly on buses and plans to offer the entire gamut of support services along with the product. An overall growth percentage of15% – 20% with the soft services bringing in 50% of the revenue in 2013-14, is what the company plans. The Swedish origin company also plans to push up its exports to 25-30% of total volumes of India over the next few years, over the current 5%.
Currently, there are about 3500 Volvo Buses operating in India, with the company enjoying a high 70% share in the luxury inter-city coach segment.
Akash Passey, MD, Volvo Buses India Private Limited, talking about the company’s expansion plans said, “We have seen robust growth in 2010 in terms of order wins and production. Long-haul luxury travel is getting segmented with higher demands, the country is clear about its ambition of making public transport a key tool for sustainable cities and we at Volvo have built a strong base via a partnership with almost every key private, public and institutional customer. These new investments are aimed in not only fulfilling current expectations, but raising expectations and exceeding them in the near future.”