VECV to acquires Volvo Group India's bus business

Pithampur – Commercial vehicle manufacturer, VE Commercial Vehicles Limited (VECV) of Pithampur, has entered into a Business Transfer Agreement with Volvo Group India for acquisition of the bus business of Volvo Group India Private Limited (VGIPL) of Bengaluru (a wholly owned subsidiary of Volvo AB, Sweden) for a cash consideration of USD 13.33m. The agreement entails manufacture, assembly, distribution and sale of Volvo buses in India, and other rights forming part of the business by VECV.

The acquisition will be completed approximately one-two months from the date of execution of the Business Transfer Agreement. After the completion of the transaction, VECV and VBI will consolidate their bus businesses into a newly formed bus division within VECV.

Hakan Agnevall, president of Volvo Bus Corporation said, “We are pleased with this development of Volvo Buses in India and see it as an opportunity to further build upon the successful JV company – VECV.  By consolidating the operations of Volvo Buses India into VECV, we aim to further develop our bus business and strengthen our position in the Indian bus market. The new bus division will offer a full range of modern buses covering customer needs for heavy, medium and light duty buses.”

Mr. Siddhartha Lal, chairman, VECV Ltd said, “This is a momentous occasion and testimony to a very strong relationship between Eicher Motors and Volvo Group. Over a period of time, the Volvo brand for buses in India has become synonymous with safety and comfort in both inter-city and intra-city public transportation, and we are extremely proud to have this iconic brand in our joint venture. With the integration of Volvo Buses India into VECV, we aim to shape the future of the Indian bus industry by offering the widest range of transport solutions to our customers.

Vinod Aggarwal, managing director and CEO, VECV Ltd added that, “VECV’s strong presence in the Indian bus market with Eicher-branded buses will be complemented by Volvo Buses’ prominent position in the premium bus segment. With this integration, VECV will be able to leverage synergies in the areas of product development, purchasing and manufacturing with access to Volvo Group’s world class technology in buses.”

Kamal Bali, President & MD, VGIPL Ltd said “The Volvo Bus is a flag bearer of the Volvo Brand in India and we expect going forward this will be re-inforced even further by our JV partner – VE Commercial Vehicles,”