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Old 6th December 2010, 17:26   #1
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Default Volvo India buys out JV partner. Now owns 100% of Indian operations

High Points:

- Volvo Buses in India takes the next big step: Buys out its JV partner stake. Volvo Buses India Private Limited today announced the 100% buyout of Azad Group share, its JV partner since 2008. This increases Volvo Buses stake from the current 70% to 100% ownership.

- Announces its single largest order of 100 multi-axle buses from VRL Logistics.

- The future includes an increase in production by close to 100% by 2012, catering to more export markets and to bring in products for new segments.

- Volvo Buses expects a growth of 15% - 20% overall, and the Soft services (mainly support) to give 50% of the revenue in 2013-14.

- Volvo Buses India will step up on its exports from 2011. Exports will account for 25 - 30% of total volumes of India over the next few years (currently 5%).

- Last week Volvo City Buses entered its 12th city – Mumbai. Currently, there are about 3500 Volvo Buses operating in India, both in the city and inter-city segments.
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Old 6th December 2010, 17:46   #2
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Hmm...don't know what to comment; what could one expect when an Indian JV thrown out...err...bought out?

Any ideas as why this has happened?

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Announces its single largest order of 100 multi-axle buses from VRL Logistics
Whoa!!! Why would VRL Logistics buy 100 buses? I thought they were only into commercial packaging & movement. Are they going to start something new or adding to their existing fleet?
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Old 6th December 2010, 17:53   #3
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Originally Posted by aargee View Post
Hmm...don't know what to comment; what could one expect when an Indian JV thrown out...err...bought out?

Any ideas as why this has happened?


Whoa!!! Why would VRL Logistics buy 100 buses? I thought they were only into commercial packaging & movement. Are they going to start something new or adding to their existing fleet?
VRL already has a very big fleet of buses including a fleet of aging Mark II Volvos and some new multi axle ones. I believe they might be expanding to new bus routes.
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Old 6th December 2010, 18:01   #4
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Whoa!!! Why would VRL Logistics buy 100 buses? I thought they were only into commercial packaging & movement. Are they going to start something new or adding to their existing fleet?
VRL already has a big fleet of Volvo buses which operate on the intercity routes like Bangalore-Pune-Mumbai (and some more routes) with descent quality. Infact they had recorded a similar large order for the B7R Volvo buses when they were newly introduced. I think they are repeating the similar order this time for multi-axle.
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Old 6th December 2010, 18:14   #5
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@aargee,
VRL are big time players in inter-city services. Check this link. Welcome To VRL - Logistics Online Ticket Booking
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Old 6th December 2010, 18:36   #6
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Originally Posted by aargee View Post
Hmm...don't know what to comment; what could one expect when an Indian JV thrown out...err...bought out?

Any ideas as why this has happened?
AZAD has tied up with MAN for supplying OEM coaches. AZAD would be building the new MAN Intercity coaches at their Jaipur plant.

MAN is expected to bring out their coach earlier next year - from hearsay, it would be a premium product, all out to eat into Volvo and Merc's share of the market.

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Whoa!!! Why would VRL Logistics buy 100 buses? I thought they were only into commercial packaging & movement. Are they going to start something new or adding to their existing fleet?
VRL is a monopoly bus operator is quite some parts of Karnataka. They have operations to almost all parts of Karnataka. They have some 5 or 6 daily multi-axle operations from Bangalore to Mumbai, and quite some regular B7Rs to Pune (This is only a tip of the VRL iceberg).
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Old 6th December 2010, 19:20   #7
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Wow..!!! 100 multi-axle buses for VRL. That is awesome. Congrats to them and Volvo.VRL is a highly respected tour operator whose service is fairly consistent and punctual for many years now. Hope they succeed in their plans.
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Old 6th December 2010, 19:21   #8
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So what does this mean for Azad ?

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Originally Posted by aargee View Post
Whoa!!! Why would VRL Logistics buy 100 buses? I thought they were only into commercial packaging & movement.?/quote]VRL has a huge bus fleet. With the number of AL vehicles they have, they are on Leyland's priority customer list. It is no surprise that VRL's going for these many replacements.
If reports were to be believed, VRL was also trying to get into the aviation sector. But IMO, that would be a pretty big change in direction for them.

Last edited by FlyingSpur : 7th December 2010 at 12:41. Reason: Fixed the broken quote tags.
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Old 6th December 2010, 21:16   #9
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does anyone have the pix of volvo's that mumbai (B.e.s.t) has got?
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Old 6th December 2010, 21:31   #10
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Volvos took this long to come into BEST??

But this takeover by Volvo of the entire business is an indicator of the future that Volvo sees in India not only as a domestic market but also as an export hub. None of the other entrants be it Isuzu or MB have been able to beat Volvo thus far.
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Old 6th December 2010, 21:51   #11
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does anyone have the pix of volvo's that mumbai (B.e.s.t) has got?
This is from a newspaper: (TOI, I believe).

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This bus has 48 seats! Regular Volvos (sold to all other operators) have only 41 seats (38 fixed seats, and three collapsible seats).
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Old 7th December 2010, 00:30   #12
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Quote:
Originally Posted by binaiks View Post
AZAD has tied up with MAN for supplying OEM coaches. AZAD would be building the new MAN Intercity coaches at their Jaipur plant.

MAN is expected to bring out their coach earlier next year - from hearsay, it would be a premium product, all out to eat into Volvo and Merc's share of the market.
But sources indicate that its a FE bus unlike Volvo,MB.
They may be given for trial in a months time.
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Old 7th December 2010, 02:07   #13
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I think Volvo has enjoyed a clear good name perception of a high end bus since more than 2 decades in India. and they are basically materializing the fact.

Most of the auto companies have now relaised that developing countries is where the actual growth is and everyone wants to cash on it.

I still remember, when i was small enough to be called as a kid, there was an anxious moment for travelling in Volvo. If you see there are tons of buses plying Mum-Goa; Even the common man prefers to call that he is travelling in Volvo. (Its like what Xerox did to photocopying atleast here in India). No one says i am going in benz/sutlej. Such is the brand perception of Volvo in India, and i think they are going to take it futher.

It would be exiting to see if TATA can bring a luxury Bus on the platform of Prima's. That would be exiting to watch.
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Old 7th December 2010, 04:10   #14
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I think Volvo has enjoyed a clear good name perception of a high end bus since more than 2 decades in India.
Two decade ???

I thought Volvo India camped in India almost a decade ago, that too, somewhere around 2001/02.

Can someone correct if our understandings are incorrect pls?
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Old 7th December 2010, 08:32   #15
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Originally Posted by Ashley2 View Post
But sources indicate that its a FE bus unlike Volvo,MB.
They may be given for trial in a months time.
That was the initial news. Later, a person close with the process says its an RE bus. The bus is reportedly at ARAI for homologation already. Again, not sure of which news to believe - however, its sure that the body would be built by AZAD.

I doubt if anyone would be so interested in going for Fully-built FE buses - customers going for FE buses usually customise the product heavily.

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Originally Posted by aargee View Post
Two decade ???

I thought Volvo India camped in India almost a decade ago, that too, somewhere around 2001/02.

Can someone correct if our understandings are incorrect pls?
Volvo came to India sometime in 2001~2002. Its been hardly a decade now.
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