Volvo rebrands Ingersoll Rand unit

Swedish heavy vehicle and construction equipment maker Volvo Construction Equipment, which recently acquired the road machinery business of Ingersoll Rand (IR) for $1.3 billion globally, has rebranded the IR products under Volvo brand.

The first batch of products with brand Volvo were launched for the Indian market last week at Excon 2007.

The company aims to complete the rebranding of all IR products by April 2008 for all its markets globally, Eberhard Wedekind, President, Asian region for Volvo said. Following the completion of integration of IR into Volvo, the company will develop India as its fourth hub for construction equipment in Asia, he said.

"We will continue to invest as and when required to add new capacities and introduce new products for the Indian market. There are a lot of gaps in our product portfolio such as stationary equipment. We will take a decision at an appropriate time on expanding the productline," he told Business Standard.

At the just concluded Excon 2007, the construction equipment industry exhibition, here Volvo launched four products made at Ingersoll Rand's facility in Bangalore for the Indian market. They are asphalt paver, soil compactor, asphalt compactor and the new model of pneumatic tyre roller under the Volvo brand. These products were earlier made by Ingersoll Rand.

"Indian market is very attractive for us. We will try to find out more opportunities to increase our market share in the country. The company is presently studying opportunities to increase the product range," Eberhard said.

Patrick Olney, President, Road Machinery Business Line of Volvo said the company will complete the repositioning of Ingersoll Rand products by April 2008 and relaunch them under Volvo brand globally. Volvo is also working towards bringing the IR factory under Volvo¿s lean manufacturing systems, he said.

Meanwhile, Volvo India Private Limited which had announced last year that it would start manufacturing construction equipment at a new facility in Indian in the next three to four years is likely to give relook on its plans.

It is now considering an option to produce construction equipment at the Ingersoll Rand's manufacturing plant in Bangalore, according to Mrityunjaya Singh, Head, Volvo Construction Equipment, India.

"The acquisition of IR gives us an ability to produce construction equipment in India," he said.

Volvo currently imports construction equipment from South Korea, Canada and Sweden. Volvo's construction equipment division currently markets wheel loaders, articulated haulers, excavators and motor graders.