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Bengaluru, July 8
The Swedish company, Volvo Construction Equipment intends to enhance its localization efforts and expects to grow its revenue by two and half times in the next four to six years. The construction company’s current annual turnover from the Indian market is estimated to be close to ₹ 2,000 crore.
“Volvo CE is gaining market shares on a year-to-date basis and has gained roughly half a per cent market share in the country. We aim to grow (our revenues) by two and a half to three times in the next four years in India,” said Dimitrov Krishnan, Head of Region India, Volvo CE to BusinessLine.
It is also looking forward to a few localization projects for India in the coming years, “we are working towards an ambitious target of 85 per cent product localization to be achieved by 2025,” said Krishnan. At present, it manufactures four product lines in India.
Also, to enhance the company’s existing range of excavators in India, Volvo launched EC550E crawler excavator in the Indian market for the first time in Bengaluru on Thursday. Compared to the conventional system, the new product promises to boost productivity by up to 35 per cent and enhance fuel efficiency by 22 per cent.
Volvo CE India also said that it has 19 Indian and four international dealerships. Most of their long-standing partners would be responsible for the newly launched Volvo EC550E and would offer complete sales and service offerings.
Market conditions
The growth of the construction equipment industry has been impacted by the slowdown brought by high-interest rates, the struggling global economic conditions, and high credit control for the financing of construction equipment, Krishnan added. “Though there is a lot of push from the government towards infrastructure growth, not much is visible on the ground. Maybe it would change by the end of this year,” he opined.
Adding that the global construction equipment industry realizes India’s potential - with all the major structural reforms and infrastructure development plans - Volvo CE’s regional head said that India will be the second-largest market in less than a decade and maybe the largest market in the world by 2040.
The company didn’t disclose the exact contribution of Indian operations to its overall business. Presently, it has 400 employees in India and has partnered with dealerships that are 1,000 members strong.
Volvo Construction Equipment, part of the Volvo Group, is an international company that develops, manufactures and markets equipment for construction and related industries. It has been in India for the past 23 years. The current product line includes close 30 different types of products. In India and has a manufacturing unit in Bengaluru.
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