Swedish commercial vehicles major Volvo today announced consolidation of its bus business in India into a group company, Volvo India Pvt Ltd, which is also responsible for manufacturing of Volvo trucks, among others.
"With effect from December 31, 2015, Volvo Buses India has merged into the joint company of Volvo Group in India, namely Volvo India Private Limited (VIPL)," the group said in a statement today.
Volvo India Pvt Ltd (VIPL) Managing Director Kamal Bali said it's "quite natural" for all businesses and brands of the group to be part of a unified legal organisation in order to harness synergies, competencies, create greater efficiencies and responsiveness at the back-end, leading to better customer experience.
Volvo Buses will, however, continue to be responsible for its brand, market and business operations while leveraging the tremendous synergies and strength of the joint company, the statement added.
The group said VRV Sriprasad will continue to lead the Volvo Bus business in India. As before, he will report to Akash Passey, senior vice-president at Volvo Bus Corporation.
Volvo Group in India includes multiple business areas and brands such as Volvo Buses, Volvo Penta Engines, Volvo Construction Equipment, UD Buses, Volvo Trucks and Eicher Trucks and Buses, among others.
Eicher and Volvo trucks are sold via a joint venture company -- VE Commercial Vehicles Ltd.
With the consolidation, VIPL is now responsible for almost all manufacturing and business areas that make up the group globally. It also hosts various global support and engineering services - engineering design and development, IT support and services, accounting and logistics services, catering to both domestic and global operations of the group.
VIPL is headquartered in Bengaluru and has three manufacturing facilities near the city, namely the Volvo Trucks facility in Hosakote, Volvo and UD Bus factory in Hosakote too and Volvo and SDLG Construction Equipment factory in Peenya Industrial Area.
With the merger, the group has over 3,500 employees and approximately 300 sales and support points across the country, excluding operations of VECV, it said.
