Volvo Buses India integrates with VECV in merger valued at Rs 100 cr

Two bus businesses will become part of a new division in VECV, say executives.

Volvo Buses India said on Thursday it will integrate with Volvo Eicher Commercial Vehicle (VECV), drawing a valuation worth Rs 100 crore for the merger.

The two companies will cooperate in product development, purchasing and manufacturing to become the leader in bus manufacturing, said Vinod Aggarwal, Managing Director & chief executive officer of VE Commercial Vehicles.

The two bus businesses will become part of a new division in VECV. Akash Passey, senior vice president for Volvo Buses, will head the new division as president. 

The “division will offer Volvo and Eicher branded buses, and will maximize synergies to capitalize on market opportunities. This strategy will be extended to exports, wherein the new bus division will offer products and services that are complementary with Volvo Buses’ core product portfolio in select international markets,” said Siddhartha Lal, chairman of 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,” said Håkan Agnevall, president of Volvo Bus Corporation.

"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,” said Aggarwal.