VECV in­vests big in Bhopal

VE Commercial Ve­hi­cles (VECV), a joint ven­ture be­tween the Volvo Group and Eicher Mo­tors, re­cently com­mem­o­rated this decade-long part­ner­ship by an­nounc­ing the set­ting up of a new Green­field truck man­u­fac­tur­ing plant in Bhopal.

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In op­er­a­tion since July 2008, VECV in­cludes the com­plete range of Eicher-branded trucks and buses, VE Pow­er­train (en­gines), Eicher engi­neer­ing com­po­nents, along with the sales and dis­tri­bu­tion of Volvo trucks within In­dia. VECV’s vi­sion is to be recog­nised as the in­dus­try leader driv­ing mod­erni­sa­tion in commercial trans­porta­tion in In­dia and the de­vel­op­ing world. To com­mem­o­rate the 10-year­long part­ner­ship be­tween Eicher Mo­tors and Volvo Group, VECV has an­nounced the setup of a new pro­duc­tion fa­cil­ity at Bhopal that will draw an in­vest­ment of `400

crore. Pro­duc­tion will be­gin with light duty trucks, which will also cater to in­ter­na­tional mar­kets. The tar­get is to go on stream with this plant in the next 18 months with an ini­tial ca­pac­ity of 40,000 trucks, in ad­di­tion to the ca­pac­ity of 90,000 trucks at Pitham­pur, near In­dore. The com­pany plans to em­ploy more than 2000 peo­ple at the fa­cil­ity, fur­ther ex­plor­ing ad­di­tional em­ploy­ment op­por­tu­ni­ties with an an­cil­lary sup­plier base.

The fa­cil­ity will draw an in­vest­ment of `400 crore; the tar­get is to go on stream in the next 18 months

VECV has en­joyed a yearly av­er­age growth of over 18 per cent in the last 10 years and a turnover of `10,200 crore in 2017-18.

The en­tire Board of Direc­tors of AB Volvo was present on the oc­ca­sion to cel­e­brate the highly suc­cess­ful joint ven­ture in In­dia. Speak­ing at the event, Martin Lund­st­edt, Pres­i­dent and CEO, Volvo Group, said, “It is a proud mo­ment for us as we cel­e­brate an ex­tremely suc­cess­ful part­ner­ship with Eicher Mo­tors. To­gether we have cre­ated many in­dus­try-lead­ing bench­marks to drive mod­erni­sa­tion in the last 10 years. In­dia is a home base for Volvo Group, with a pres­ence of over two decades across our var­i­ous busi­ness lines, and we re­it­er­ate our strong com­mit­ment to the fu­ture of the coun­try and VE Commercial Ve­hi­cles.”

Also present was Sid­dhartha Lal, MD & CEO, Eicher Mo­tors, who spoke of the fruit­ful part­ner­ship that is re­flected in the strong per­for­mance of VECV. “Not only has VECV ben­e­fited from this part­ner­ship but we have also been able to con­trib­ute to the cost-re­duc­tion op­por­tu­ni­ties for the Volvo Group through sup­ply of cost-ef­fec­tive en­gines from In­dia. As we move into the next decade, we re­it­er­ate our strong com­mit­ment to this part­ner­ship,” Lal said.

VECV is an ex­clu­sive man­u­fac­tur­ing hub for the medium-duty Euro-VI en­gines for the Volvo Group and is a fine ex­am­ple of the ‘Make in In­dia’ ini­tia­tive of Govern­ment of In­dia. These en­gines, man­u­fac­tured at the state-of-the-art man­u­fac­tur­ing fa­cil­ity in Pitham­pur, are be­ing ex­ported to Europe and Asia to take care of the needs of the Volvo Group. Com­ment­ing on the oc­ca­sion, Håkan Karls­son, Pres­i­dent, Volvo Group Trucks Asia & JVs and Chair­man, VECV, said, “We have full con­fi­dence in the growth po­ten­tial in the In­dian mar­ket. With tech­no­log­i­cally su­pe­rior prod­ucts, VECV is at an ad­van­ta­geous po­si­tion to fully lever­age the op­por­tu­ni­ties in the mar­ket. The visit by the Board of Direc­tors of AB Volvo re­flects the strong com­mit­ment of Volvo Group to this part­ner­ship and we are look­ing for­ward to fur­ther de­velop the part­ner­ship to lead the rapid trans­for­ma­tion in the in­dus­try.”

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