Kochi, Apr 4: Volvo Construction Equipment (CE), a wholly owned subsidiary of Swedish transportation major AB Volvo, targets to match the industry growth rate forecast of about 30 per cent in India, company's country Vice-president Mrityunjaya Singh said today.
Addressing a press conference here to showcase two new equipment in the Kerala market, Mr Singh said as per a Mckinsey study, the construction equipment industry in India was forecast to grow at about 25 to 30 per cent in the next ten years. The construction equipment market in India was presently worth four billion US Dollars and was forecast to grow to 15 billion US Dollars by next year.
However, India still had to go a long way to catch up with China, which invested 100 billion US Dollars in infrastructure construction in 2006 as against 20 billion US Dollars in India.
Talking about the company's plans for India, Mr Singh said Volvo CE India, which had initially invested 60 million US Dollars in India, would slowly infuse more capital into its Bangalore plant to ramp up capacity and the product range. ''Our philosophy is to have the point of manufacture close to the point of sale.'' The Bangalore plant was currently manufacturing 1,000 units annually but had the capacity to double the production, he added.
Of the 40-odd models of various construction industry equipment sold by Volvo CE in India, vibratory rollers, asphalt and WMM pavers were being manufactured in the Bangalore plant besides Volvo buses and trucks.
The company's other product range in India included hydraulic excavators, motor graders, wheel loaders and articulated haulers.
It presently had 11 dealers, 54 service locations and 45 parts depots in the country.
At a road show held here today, Volvo CE showcased its SD 110 vibratory soil compactor and EC 140B LC hydraulic excavator.