Eicher Motors Unit To Buy Volvo India’s Bus Business
Eicher Motors Ltd.’s unit has inked a deal to acquire the bus business of Volvo Group India Pvt. as it looks to strengthen operations in the country.
Volvo Eicher Commercial Vehicles Ltd. will acquired the bus unit for Rs 100.5 crore, Vinod Aggarwal, chairman and managing director, said at a press meet on Thursday. The move, he said, will strengthen Volvo and Eicher’s bus operations in India through synergies in product, purchasing and manufacturing.
“The deal will make us a large player in the bus business with the widest range,” Aggarwal said.
The pact will cover manufacture and sale of Volvo buses in India, and no debt of the entity has been taken over by VE Commercial Vehicles, Aggarwal said. The bus manufacturing facility at Bengaluru and all employees of Volvo Bus India will be transferred to VE Commercial Vehicles as part of the transaction.
The bus business will be consolidated into a new division within VE Commercial Vehicles, and will offer Volvo and Eicher branded buses. Akash Passey, senior vice president at Volvo Bus Corp., will join as president of the new VECV bus division.
Hakan Agnevall, president at Volvo Bus Corp., said the new bus division will offer a full range of modern buses covering customer needs for heavy, medium and light duty buses. “We are pleased with this development of Volvo buses in India and see it as an opportunity to further build upon the successful joint venture — VE Commercial Vehicles.”