Eicher Group company has signed an agreement to buy the bus division of Volvo in India for Rs 100 crore
VE Commercial Vehicles (VECV), the truck and the bus-making company of Eicher Motors, has signed an agreement to buy the bus division of Volvo in India for Rs 100 crore. Definitive agreements have been signed for the integration of Volvo Buses India business into VE Commercial Vehicles (VECV). They will cover the manufacture, assembly, distribution, and sale of the Volvo Buses in India, and other rights forming part of the business. Consequently, the bus manufacturing facility at Hosakote, Bengaluru, and all employees of Volvo Bus India (VBI) will be transferred to VECV. Volvo Bus India is currently a division of Volvo Group India (VGIPL).
The transaction will be completed once the conditions under the agreements are fulfilled and the final business transfer is expected to be closed within the next two months. VECV is a joint venture between Volvo Truck Corporation and Eicher Motors. The transaction will lead to a new bus division comprising Eicher and Volvo bus business. The transfer agreement with Volvo Group India is for manufacture, assembly, distribution and sale of the Volvo buses in India.
Eicher Motors’ consolidated net profit slumped 44.2% to Rs 304.28 crore on 11% drop in net sales to Rs 2,190.32 crore in Q4 March 2020 over Q4 March 2019.
Shares of Eicher Motors declined 1.01% to Rs 21,880.05 on BSE. Eicher Motors is the listed parent of Royal Enfield, the global leader in middleweight motorcycles. In addition to motorcycles, Eicher has a joint venture with Sweden’s AB Volvo – Volvo Eicher Commercial Vehicles (VECV) which operates in India’s commercial vehicle space. VECV has a complete range of trucks and buses from 5-55 tonnes, and its integrated manufacturing plant in Pithampur, Madhya Pradesh is the global hub for medium duty five- and eight-litre engines for Volvo Group.
This story has not been edited by SightsIn Plus staff and is auto-generated from a syndicated feed. Source PTI