News: Volvo Construction may set up India unit

(BS 21/06/2006) Mumbai - Volvo Construction Equipment (Volvo CE), a wholly owned subsidiary of Swedish commercial vehicle major AB Volvo, is exploring the possibility of setting up a manufacturing facility in India.

Volvo CE, a leading player in the construction equipment space, sells products such as wheel loaders, excavators, articulated haulers, motor graders and compact equipment.

The company will, however, manufacture only select products in the proposed Indian manufacturing facility.

Cheap labour, good market and accessibility to steel and rubber vendors are key factors that attract the company to India.

Mrityunjaya Singh, vice-president — construction equipment, Volvo India, confirmed the development. "We are keen to have an own facility but that is far away from start," he said.

Singh said the company had not even prepared the blueprint for the proposed facility.

However, various state governments, including Karnataka, are pitching for the plant.

The company has a truck plant in Bangalore in 120 acres space, where half of the land is still unutilised.

Meanwhile, the company is also planning to start a training school in Bangalore for technicians and equipment operators.

"The school will impart formal training to Volvo construction equipment operators as part of its human resource grooming programme. While the construction equipment market is growing steadily at 30 per cent, human resource growth in the sector is only around 10 per cent," Singh said.

The first phase of the training school is slated for completion in the first quarter of 2007.

The company recently launched the EC 140 BLC Hydraulic Excavator to cater to the middle class equipment rental sector. At present, Volvo in India has nearly 12 per cent market share for excavator.

Volvo CE caters to roads construction, mining, irrigation, urban development and equipment rental segments.