Volvo buys out JV partner, announces growth plans
06 Dec 2010
Swedish vehicle maker Volvo, today said that it has bought out its joint venture partner Azad Group's stake in its Indian subsidiary Volvo Buses India Private Limited and revealed its growth plans for the next 5 years.
''This increases Volvo Buses stake from the current 70 per cent to 100 per cent ownership,'' said Volvo Buses in a statement.
Volvo started selling its buses in India in October 2001 and formed a 70:30 joint venture with Bangalore-based Jaico Automobiles, an Azad Group company in 2008, for the production of bus bodies based on its bus body technology.
Volvo Buses India today also revealed its growth plans for the next five years to meet the increased demand.
The Swedish commercial vehicles maker said that it will augment its factory and establishment with new facilities for refurbishment operations, customer experience lounge, new integral production principles, a competence development centre and expand the paint shop.
It will expand its Hosakote facility in Bangalore by almost 100 per cent and will also increase its manpower by 30 per cent in the coming two years.
Elaborating on the company's expansion plans, Akash Passey, MD, Volvo Buses India said, ''We have seen robust growth in 2010 in terms of order wins and production.