Volvo Construction Equipment, a wholly-owned subsidiary of AB Volvo engaged in the manufacture of construction equipment, has announced an investment of Rs 90 crore in its facility in Bangalore. The investment is in line with the company’s objective of supporting customers in the growing BRIC (Brazil, Russia, India & China) markets.
The investment will allow Volvo Construction Equipment to produce medium-sized excavators at the plant. These machines will primarily be used in the Indian market, the company has said.
Commenting on the development, Mrityunjaya Singh, managing director of Volvo India Private Limited said, “Volvo Construction Equipment in India presently manufactures road machinery and the investment will help us expand our manufacturing footprint by adding indigenously-built excavators to cater to the steeply developing market.”
Production of the first machine is expected to start by the end of 2011.
Volvo Construction Equipment in India got its first production footprint in India after the company’s acquisition of Ingersoll Rand’s road machinery division in 2008. The facility at Peenya in Bangalore presently manufactures road machinery to cater primarily to the Indian market and also for some exports.
Volvo CE’s operations in India have grown through a distribution network of 11 dealers who presently operate from 90 service points and 55 parts depots located across the country.