The Hindu Business Line : Volvo entering logistical services

New Delhi May 11 Volvo Truck Corporation has decided to diversify its Indian operations and foray into freight forwarding, goods transport, warehousing, commission agency and allied services.

The $36-billion Swedish commercial vehicle giant's business in India is currently confined to truck and bus manufacturing through a facility at Yelachahalli, near Bangalore. The company also offers manufacturing-related services, such as hire purchase, lease financing and driver training.

But it is now looking beyond manufacturing to become a full-fledged logistics solutions provider.

"The Foreign Investment Promotion Board has approved Volvo's proposal to enter the logistics sector in the last week of April," sources told Business Line.

The company has, accordingly, been permitted to expand the scope of its business in India to cover "logistics, freight forwarding, carriers of goods by roads and water, transport, commission, clearing and forwarding agents, cargo agents, packers, warehousemen, storekeepers and allied services".

A Volvo spokesperson, when contacted, said that the proposed diversifications will "help us to increase the scope of our activity in India." Till now, "we were invoicing our logistical requirements from the Sweden-based parent company but now we would be able to do it through the Indian company."

The spokesperson added that the new activities would not be carried out through a separate company, but under a separate division of Volvo India Private Ltd.

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Volvo entering logistical services