NEW DELHI: The Competition Commission of India (CCI) has given approval to the proposed acquisition of credit card business of Barclays India by the Indian arm of Standard Chartered Bank.
"... the Commission is of the opinion that the proposed acquisition is not likely to have an appreciable adverse effect on competition in India. The Commission, therefore, hereby approves the proposed combination...," the CCI said in an order.
The CCI had on December 12 received a notice on the proposed acquisition.
The application stated that the credit card business proposed to be acquired by Standard Chartered Bank (SCB) India includes selected sale accounts, customer relationship, customer data and files and oustanding receivables of identified cardholders.
It was stated that SCB India is not acquiring any of the processes, infrastructure, assets or employees of Barclays India.
The notice also said that Barclays India will notify the concerned card customers about the transaction along with the offer of SCB India for re-carding and "those customers who convey their objection to receiving SCB India cards will not be issued credit cards by SCB India."
While SCB India is an arm of the UK-based Standard Chartered Plc, Barclays India is a branch of Barclays Bank Plc, also based in the UK.
The CCI considered the proposed acquisition at its meeting on December 28.
It noted that the credit card business in India is fragmented with presence of diverse players and the aggregate share of SCB India and Barclays India taken together is in single digit.
"Further, it is observed that SCB India and Barclays India have no arrangement among themselves in any activity, relating to the production, supply, distribution, storage, sale and service or trade in products or provision of service...
"Given the foregoing, the proposed combination is not likely to have an adverse effect on competition in India," it said in the order.
Barclays had put its India card unit for sale earlier this year as part of its business restructuring strategy.
Success in my Habit
Thursday, December 29, 2011
IDBI Bank seeks capital support from government
MUMBAI: State-owned lender IDBI Bank today said the government is considering capital support to the bank to boost up its capital.
The Government of India is actively considering the bank's request for capital support and intends to infuse capitals funds in the bank by way of preferential allotment of equity, IDBI Bank informed the BSE.
Last year, the the government had agreed to infuse Rs 3,119.04 crore. Post-capital infusion, the stake of the central government increased to 65.15 per cent from 52.6 per cent.
The was capital infused through preferential allotment of shares to the Government of India.
The government has already made a provision to infuse Rs 6,000 crore in public sector banks in Budget of the current fiscal.
The Government of India is actively considering the bank's request for capital support and intends to infuse capitals funds in the bank by way of preferential allotment of equity, IDBI Bank informed the BSE.
Last year, the the government had agreed to infuse Rs 3,119.04 crore. Post-capital infusion, the stake of the central government increased to 65.15 per cent from 52.6 per cent.
The was capital infused through preferential allotment of shares to the Government of India.
The government has already made a provision to infuse Rs 6,000 crore in public sector banks in Budget of the current fiscal.
Metro develops tubeless tyres for motorcycles with Continental
CHANDIGARH: Metro Tyres today said it has designed and developed high-end tubeless tyres for motorcycles in technical collaboration with Continental AG of Germany.
"Being a preferred partner of Continental AG (Two wheeler tyres), we are already enjoying a niche brand equity in global markets and our entry in Tubeless Tyres will further strengthen our global positing," said Metro MD Rummy Chhabra in a statement.
Initially, Metro Tyres will manufacture tubeless tyres at its state-of-the-art plants in Ludhiana where it has invested Rs 30 Crore for up gradation and capacity expansion.
Besides, Metro has earmarked another Rs 50 Crore to be invested in Manesar(Gurgaon) to for tubeless tyres venture.
To begin with, Metro tyre is looking at OEMs and Export markets for their tubeless tyres.
"Low market penetration and increasing adoption of tubeless tyres in two wheelers are expected to dynamically expand the tubeless tyre market size in the country and will position India as one of the most attractive destinations for global players to source tyres" Chhabra said.
In the wake of growing Indian two-wheeler industries, especially high-end motorcycles, Metro Tyres is sensing a huge demand for tubeless motorcycle tyres.
"Motorcycles is still ruling the two wheel industry and the driving force behind tyres sales. The overall 10-12 per cent growth in motorcycle sales and over 29 per cent growth in exports sales are together paving way to create demand for tubeless tyres," he said.
Metro has already started supplying these tyres to Continental for the overseas market, while in the domestic market OEM development is already there for 250CC bikes.
The company has capacity to produce 2 lakh motorcycle and two-three wheeler tyres and tubes per month, which will be escalated to 5 lakhs tyres and tubes per month post Manesar expansion.
It is looking at a turnover of Rs 600 crore by 2012 and planning to be a 1,000 crore player in the next 4 years.
"Being a preferred partner of Continental AG (Two wheeler tyres), we are already enjoying a niche brand equity in global markets and our entry in Tubeless Tyres will further strengthen our global positing," said Metro MD Rummy Chhabra in a statement.
Initially, Metro Tyres will manufacture tubeless tyres at its state-of-the-art plants in Ludhiana where it has invested Rs 30 Crore for up gradation and capacity expansion.
Besides, Metro has earmarked another Rs 50 Crore to be invested in Manesar(Gurgaon) to for tubeless tyres venture.
To begin with, Metro tyre is looking at OEMs and Export markets for their tubeless tyres.
"Low market penetration and increasing adoption of tubeless tyres in two wheelers are expected to dynamically expand the tubeless tyre market size in the country and will position India as one of the most attractive destinations for global players to source tyres" Chhabra said.
In the wake of growing Indian two-wheeler industries, especially high-end motorcycles, Metro Tyres is sensing a huge demand for tubeless motorcycle tyres.
"Motorcycles is still ruling the two wheel industry and the driving force behind tyres sales. The overall 10-12 per cent growth in motorcycle sales and over 29 per cent growth in exports sales are together paving way to create demand for tubeless tyres," he said.
Metro has already started supplying these tyres to Continental for the overseas market, while in the domestic market OEM development is already there for 250CC bikes.
The company has capacity to produce 2 lakh motorcycle and two-three wheeler tyres and tubes per month, which will be escalated to 5 lakhs tyres and tubes per month post Manesar expansion.
It is looking at a turnover of Rs 600 crore by 2012 and planning to be a 1,000 crore player in the next 4 years.
Indian tyre industry facing threat from cheap Chinese imports
AGARTALA: The Chairman of Rubber Board, Sheila Thomas, said that India's rubber industry is facing a threat due to cheap import of products from China, adding that the country could easily overcome this problem since the quality of products manufactured in India are superior as compared to other countries.
She said this on the sidelines of a prize giving ceremony for rubber growers in Agartala.
"China is mostly cheaper goods, how they produce it we don't know, especially non-tyre, but tyre also. Tyre people are also facing threat from cheaper imports from China. But, then we can, through our competence and government has some measures to help them out, so I am sure they can. Quality-wise we are superior to everyone in the world I think, that's why all the tyre majors are coming to India now to put up their plants," said Thomas.
Thomas added that rubber has helped the farmers to get a steady income, and they are able to get good money for their produce almost throughout the year.
"Rubber has certainly helped in giving the people a sustainable income, the best part about rubber is that it can yield almost throughout the year, only except for a brief gap in summer and here in winter. So, that gives a steady income to the farmer and prices now are good. If the economic growth improves, then consumption of rubber will also go up," she added.
She predicted that in the near future Indian economy would emerge stronger as the demand for natural rubber is directly proportional to the GDP of a nation.
She said this on the sidelines of a prize giving ceremony for rubber growers in Agartala.
"China is mostly cheaper goods, how they produce it we don't know, especially non-tyre, but tyre also. Tyre people are also facing threat from cheaper imports from China. But, then we can, through our competence and government has some measures to help them out, so I am sure they can. Quality-wise we are superior to everyone in the world I think, that's why all the tyre majors are coming to India now to put up their plants," said Thomas.
Thomas added that rubber has helped the farmers to get a steady income, and they are able to get good money for their produce almost throughout the year.
"Rubber has certainly helped in giving the people a sustainable income, the best part about rubber is that it can yield almost throughout the year, only except for a brief gap in summer and here in winter. So, that gives a steady income to the farmer and prices now are good. If the economic growth improves, then consumption of rubber will also go up," she added.
She predicted that in the near future Indian economy would emerge stronger as the demand for natural rubber is directly proportional to the GDP of a nation.
Mahindra to launch Duro DZ scooter at Auto Expo
MUMBAI: Auto major Mahindra will launch its new Duro DZ scooter model and unveil its MGP30 racing motorcycle at the Delhi Auto Expo next month.
"The Mahindra Duro DZ is a tough and powerful scooter designed specifically for Indian road conditions. The Duro DZ is the result of our R&D team working closely with consumers and extensive testing," Mahindra 2 Wheelers president Anoop Mathur said in a statement Tuesday.
Ruzbeh Irani, executive vice president (Corporate Strategy and Chief Brand Officer), said Mahindra Racing will unveil its new Moto3 challenger, the MGP30 for the first time in India.
Mahindra was the first Indian company to enter the MotoGP motorcycle racing championship in 2011.
Overall, around 50 new two-wheelers, cars, buses and trucks would be launched at the Auto Expo 2012 beginning here Jan 5.
The 11th edition of the biennial exhibition is being jointly organised by Society of Indian Automobile Manufacturers (SIAM), the Confederation of Indian Industry (CII) and Automotive Component Manufacturers Association of India (ACMA).
Some 1,500 exhibitors from 24 countries would participate in the trade show.
"The Mahindra Duro DZ is a tough and powerful scooter designed specifically for Indian road conditions. The Duro DZ is the result of our R&D team working closely with consumers and extensive testing," Mahindra 2 Wheelers president Anoop Mathur said in a statement Tuesday.
Ruzbeh Irani, executive vice president (Corporate Strategy and Chief Brand Officer), said Mahindra Racing will unveil its new Moto3 challenger, the MGP30 for the first time in India.
Mahindra was the first Indian company to enter the MotoGP motorcycle racing championship in 2011.
Overall, around 50 new two-wheelers, cars, buses and trucks would be launched at the Auto Expo 2012 beginning here Jan 5.
The 11th edition of the biennial exhibition is being jointly organised by Society of Indian Automobile Manufacturers (SIAM), the Confederation of Indian Industry (CII) and Automotive Component Manufacturers Association of India (ACMA).
Some 1,500 exhibitors from 24 countries would participate in the trade show.
Government considering revival of sick PSU Scooters India
NEW DELHI: Unable to find a potential buyer for the sick PSU Scooters India Ltd (SIL), the Department of Heavy Industry has taken a U-turn on divesting stake in the company and now plans to seek PMO's approval to revive it.
"The department has decided to reverse the order to disinvest the government's stake in Scooters India, since there are not many buyers for it," an official source said.
The Department of Heavy Industry (DHI) will soon send a proposal to reverse the decision to the Prime Minister Office (PMO), the source added.
After getting clearance from the PMO, DHI will ask the Board for Reconstruction of Public Sector Enterprises (BRPSE) to work out a revival process, the source said.
"The department is looking at reviving the company through financial inclusion," the source said.
Recently, Minister of Heavy Industries and Public Enterprises Praful Patel had said: "We have taken the decision to put disinvestment of SIL on hold and will look at it holistically before we take a final decision".
In May this year, the Cabinet had approved selling of the government's entire 95.38 per cent stake in SIL to private players.
After reacting positively to the decision, private players such as Mahindra & Mahindra and Piaggio later pulled out from the race.
In the wake of the Uttar Pradesh elections in February, Congress leaders in the state were understood to have sought postponement of the SIL sale. The state Congress leaders do not want it to be an election issue.
The company - which has about 1,200 regular employees - has been incurring losses since 2002-03. In March 2009, the company was declared sick.
Incorporated in 1972, SIL initially manufactured scooters under the brand name Vijai Super for the domestic market and Lambretta for overseas markets.
Later, it ventured into the three-wheeler segment with the Vikram brand. In 1997, it stopped two-wheeler production and is now engaged in the manufacture and marketing of only three-wheelers.
SIL's net loss was Rs 18.4 crore during 2010-11. Shares of Scooters India were up 1.6 per cent, trading at Rs 31.5 a piece on the BSE in the late afternoon today.
"The department has decided to reverse the order to disinvest the government's stake in Scooters India, since there are not many buyers for it," an official source said.
The Department of Heavy Industry (DHI) will soon send a proposal to reverse the decision to the Prime Minister Office (PMO), the source added.
After getting clearance from the PMO, DHI will ask the Board for Reconstruction of Public Sector Enterprises (BRPSE) to work out a revival process, the source said.
"The department is looking at reviving the company through financial inclusion," the source said.
Recently, Minister of Heavy Industries and Public Enterprises Praful Patel had said: "We have taken the decision to put disinvestment of SIL on hold and will look at it holistically before we take a final decision".
In May this year, the Cabinet had approved selling of the government's entire 95.38 per cent stake in SIL to private players.
After reacting positively to the decision, private players such as Mahindra & Mahindra and Piaggio later pulled out from the race.
In the wake of the Uttar Pradesh elections in February, Congress leaders in the state were understood to have sought postponement of the SIL sale. The state Congress leaders do not want it to be an election issue.
The company - which has about 1,200 regular employees - has been incurring losses since 2002-03. In March 2009, the company was declared sick.
Incorporated in 1972, SIL initially manufactured scooters under the brand name Vijai Super for the domestic market and Lambretta for overseas markets.
Later, it ventured into the three-wheeler segment with the Vikram brand. In 1997, it stopped two-wheeler production and is now engaged in the manufacture and marketing of only three-wheelers.
SIL's net loss was Rs 18.4 crore during 2010-11. Shares of Scooters India were up 1.6 per cent, trading at Rs 31.5 a piece on the BSE in the late afternoon today.
Hero Eco acquires UK's electric 2-wheeler maker Ultra Motors
NEW DELHI: Vijay Munjal-led Hero Eco today said it has acquired UK-based Ultra Motors for an undisclosed amount, aiming to strengthen its presence globally in the electric vehicle segment.
Hero Eco, the newly formed umbrella entity by Vijay Munjal-led companies that include Hero Electric, Hero Exports, Hero Cycles, Mediva, Winn and Hero Ecotech, plans to invest Rs 450 crore in the next five years across businesses.
The company is also planning to set up an electric vehicle facility in North America within the next 18 months.
"Hero Eco has acquired Ultra Motors in UK. This will give us an exposure to all the markets where Ultra Motors were present and will strengthen Hero's brand globally," Hero Eco Managing Director Naveen Munjal told reporters here.
He, however, declined to share the value of this acquisition, citing confidentiality of agreement.
"Ultra Motors has 3 plants and is present in 6 countries with sales networks in 22 nations across the globe. This all will come under Hero Eco now," Munjal said.
Earlier, Hero Electric had a tie-up with Ultra Motors for Indian operations, but it fell apart later. The foreign firm had closed shop here about two years ago.
Ultra Motors currently has its main manufacturing plant in Taiwan and has two contract assembly plants in China.
"Eventually, the contract manufacturing activities of the two Chinese plants will shift to India. However, it will take at least 6-8 months to proceed in that direction," Hero Eco Chief Executive Officer Sohinder Gill said.
On the new group entity, Hero Eco Chairman Vijay Munjal said the new brand identity will integrate all its different verticals.
"With the new identity, we will be foraying into high-end bicycles in India under a new brand Winn. We will also expand our medical equipment business under Mediva brand in a big way," he added.
The Rs 450 crore Hero Eco is aiming for a group turnover of Rs 1,500 crore in the next five years, Naveen Munjal said.
"To expand our all businesses, we will be investing Rs 450 crore in the next five years. We will be setting up a new electric vehicle plant in North America in the next 18 months," he added.
Besides, the group will also set up a bicycle unit in India within next 18 months, he said.
Currently, Hero Eco has all its manufacturing facilities in Ludhiana. While it produces 65,000 units of electric 2-wheelers, 9 lakh bicycles are rolled out every year.
Hero Eco, the newly formed umbrella entity by Vijay Munjal-led companies that include Hero Electric, Hero Exports, Hero Cycles, Mediva, Winn and Hero Ecotech, plans to invest Rs 450 crore in the next five years across businesses.
The company is also planning to set up an electric vehicle facility in North America within the next 18 months.
"Hero Eco has acquired Ultra Motors in UK. This will give us an exposure to all the markets where Ultra Motors were present and will strengthen Hero's brand globally," Hero Eco Managing Director Naveen Munjal told reporters here.
He, however, declined to share the value of this acquisition, citing confidentiality of agreement.
"Ultra Motors has 3 plants and is present in 6 countries with sales networks in 22 nations across the globe. This all will come under Hero Eco now," Munjal said.
Earlier, Hero Electric had a tie-up with Ultra Motors for Indian operations, but it fell apart later. The foreign firm had closed shop here about two years ago.
Ultra Motors currently has its main manufacturing plant in Taiwan and has two contract assembly plants in China.
"Eventually, the contract manufacturing activities of the two Chinese plants will shift to India. However, it will take at least 6-8 months to proceed in that direction," Hero Eco Chief Executive Officer Sohinder Gill said.
On the new group entity, Hero Eco Chairman Vijay Munjal said the new brand identity will integrate all its different verticals.
"With the new identity, we will be foraying into high-end bicycles in India under a new brand Winn. We will also expand our medical equipment business under Mediva brand in a big way," he added.
The Rs 450 crore Hero Eco is aiming for a group turnover of Rs 1,500 crore in the next five years, Naveen Munjal said.
"To expand our all businesses, we will be investing Rs 450 crore in the next five years. We will be setting up a new electric vehicle plant in North America in the next 18 months," he added.
Besides, the group will also set up a bicycle unit in India within next 18 months, he said.
Currently, Hero Eco has all its manufacturing facilities in Ludhiana. While it produces 65,000 units of electric 2-wheelers, 9 lakh bicycles are rolled out every year.
TVS Motor to offer automatic transmission two wheelers from 2013
CHENNAI: Aiming to strengthen its foothold in the growing two-wheeler market,TVS Motor company today said it would introduce automatic tranmission scooters and motorcycles from 2013,with 20 per cent better fuel efficiency.
The Chennai-based auto major today showcased its latest automatic transmission engines for a 110cc scooter and a motorcyle, both likely to come out in the second half of 2013.
"We will introduce the scooter and motorcycle from the second half of 2013.Engine capacity will be from 110 cc.It has fully automatic gearshift and 20 per cent better fuel efficiency compared to conventional technology, with significant reduction in carbon emission", TVS Motor Company (New Product Development) President Vinay Harne told reporters
Declining to reveal the cost involved in developing the technology, he said TVS engineers had been working on developing the new platform for the last six to seven years.
Harne said TVS would also introduce these technologies on current models along with the new models from the second half of 2013.
He claimed acceleration and initial performance would improve with this technology and added that engine weight would come down by 15 per cent while for motorcycles it would be higher by five per cent.
Noting that the company has filed many patents in India and abroad over the last six years to develop this technology, Harne said the automatic transmission engines would offer the same convenience as in Continuously Variable Transmission technology vehicles.
He declined to reveal any figures when asked about the final on road price, saying it could be higher as the new engines provide higher efficiency and convenience.
Harne said TVS would offer variants in both manual and automatic transmission tecnologies in some existing models, allowing a customer to choose his own vehicle.
He said the technology would be offered from 110cc to 250cc. "Right now it is 110cc engine.. if you want to develop in a 250cc engine, it is possible", he said.
Harne said the company has also increased use of aluminium in engines as it would reduce overall weight.
The Chennai-based auto major today showcased its latest automatic transmission engines for a 110cc scooter and a motorcyle, both likely to come out in the second half of 2013.
"We will introduce the scooter and motorcycle from the second half of 2013.Engine capacity will be from 110 cc.It has fully automatic gearshift and 20 per cent better fuel efficiency compared to conventional technology, with significant reduction in carbon emission", TVS Motor Company (New Product Development) President Vinay Harne told reporters
Declining to reveal the cost involved in developing the technology, he said TVS engineers had been working on developing the new platform for the last six to seven years.
Harne said TVS would also introduce these technologies on current models along with the new models from the second half of 2013.
He claimed acceleration and initial performance would improve with this technology and added that engine weight would come down by 15 per cent while for motorcycles it would be higher by five per cent.
Noting that the company has filed many patents in India and abroad over the last six years to develop this technology, Harne said the automatic transmission engines would offer the same convenience as in Continuously Variable Transmission technology vehicles.
He declined to reveal any figures when asked about the final on road price, saying it could be higher as the new engines provide higher efficiency and convenience.
Harne said TVS would offer variants in both manual and automatic transmission tecnologies in some existing models, allowing a customer to choose his own vehicle.
He said the technology would be offered from 110cc to 250cc. "Right now it is 110cc engine.. if you want to develop in a 250cc engine, it is possible", he said.
Harne said the company has also increased use of aluminium in engines as it would reduce overall weight.
M&M hikes XUV500 prices by up to Rs 55,000 from January 1
MUMBAI: Following others, auto major Mahindra & Mahindra today said it will increase the prices of its recently launched international car XUV500 by at least Rs 30,000 from January 1 on the back of higher raw material costs and the rupee fall.
"The price rise has been necessitated as the launch price was an invitation price and there has also been a considerable impact of increase in raw material costs and the rupee depreciation with respect to the dollar and the euro," the company said in a statement here.
"However, as a special case, for all the current bookings, for which delivery has not been made and in spite of the terms of price applicable at the time of delivery, the increase would only be 50 percent of the actual price increase proposed, the company said.
While the base model will be dearer by Rs 30,000, the four-wheel drive variant will cost as much as Rs 50,000 more and the higher W8-AWD model will be dearer by Rs 55,000. All the prices are with reference to ex-showroom, Delhi.
Earlier, other auto majors like Toyota, Hyundai, Ford and GM had announced price hike of upto 3 per cent from the next month to offset the rise in input costs. Industry leader Maruti is yet to announce a price increase.
The SUV, priced Rs 10.8 to 11.95 lakh (ex-showroom, Delhi), was launched on September 29 and booking began on October 1. The demand has been so high that the company had to suspend booking till January from October 10. It has an order backlog of over 8,000 units.
This has forced the company to decide to double the output at its Chakan, Pune plant from next month, from the present 1800 units a month
"The price rise has been necessitated as the launch price was an invitation price and there has also been a considerable impact of increase in raw material costs and the rupee depreciation with respect to the dollar and the euro," the company said in a statement here.
"However, as a special case, for all the current bookings, for which delivery has not been made and in spite of the terms of price applicable at the time of delivery, the increase would only be 50 percent of the actual price increase proposed, the company said.
While the base model will be dearer by Rs 30,000, the four-wheel drive variant will cost as much as Rs 50,000 more and the higher W8-AWD model will be dearer by Rs 55,000. All the prices are with reference to ex-showroom, Delhi.
Earlier, other auto majors like Toyota, Hyundai, Ford and GM had announced price hike of upto 3 per cent from the next month to offset the rise in input costs. Industry leader Maruti is yet to announce a price increase.
The SUV, priced Rs 10.8 to 11.95 lakh (ex-showroom, Delhi), was launched on September 29 and booking began on October 1. The demand has been so high that the company had to suspend booking till January from October 10. It has an order backlog of over 8,000 units.
This has forced the company to decide to double the output at its Chakan, Pune plant from next month, from the present 1800 units a month
Volvo to invest Rs 400 crore, set up research centre
NEW DELHI: Swedish vehicle-maker Volvo will invest Rs.400 crore to set up a research and development (R&D) centre and expand capacity in India to earn $1 billion in revenue from its operations in the country by 2015.
"We are looking to sell 5,000 buses in India by 2015. For this there will be an investment of Rs.400 crore which will include a research centre and capacity expansion," Hakan Karlsson, president and chief executive, Volvo Bus Corporation, told reporters here Thursday.
Karlsson said the R&D centre and sourcing of parts locally would help in developing buses for India and for export purposes.
"A significant part of the Rs.400 crore investment would go into the R&D centre. This will help in developing buses for India and other markets."
Currently the company sells around a 1,000 buses in the country to the private sector, institutions and to city transport departments. India would be the second largest market for the company after China by 2015.
Karlsson added that in the coming year the company also planned to strengthen its service network in the country.
The company launched three new buses in different segments like city buses and coaches.
The company introduced the Asian bus range multi-axle coach 9400PX with a length at 14.5m making it the longest inter-city coach in India. The bus has a capacity to accommodate 105-to-110 passengers depending on the seating configuration.
The company also launched 7400XL another multi-axle bus with a steered axle and Volvo 9100 which was launched for the global market from India.
The company added that it will showcase the world's first commercially viable hybrid bus -- Volvo 7700 Hybrid at the Auto Expo here next month.
"We will be showcasing the 7700 Hybrid. But I cant say when will we launch it, as this will depend on the Indian market," said Karlsson.
With these launches, the company now offers 10 bus models in the country.
"We are looking to sell 5,000 buses in India by 2015. For this there will be an investment of Rs.400 crore which will include a research centre and capacity expansion," Hakan Karlsson, president and chief executive, Volvo Bus Corporation, told reporters here Thursday.
Karlsson said the R&D centre and sourcing of parts locally would help in developing buses for India and for export purposes.
"A significant part of the Rs.400 crore investment would go into the R&D centre. This will help in developing buses for India and other markets."
Currently the company sells around a 1,000 buses in the country to the private sector, institutions and to city transport departments. India would be the second largest market for the company after China by 2015.
Karlsson added that in the coming year the company also planned to strengthen its service network in the country.
The company launched three new buses in different segments like city buses and coaches.
The company introduced the Asian bus range multi-axle coach 9400PX with a length at 14.5m making it the longest inter-city coach in India. The bus has a capacity to accommodate 105-to-110 passengers depending on the seating configuration.
The company also launched 7400XL another multi-axle bus with a steered axle and Volvo 9100 which was launched for the global market from India.
The company added that it will showcase the world's first commercially viable hybrid bus -- Volvo 7700 Hybrid at the Auto Expo here next month.
"We will be showcasing the 7700 Hybrid. But I cant say when will we launch it, as this will depend on the Indian market," said Karlsson.
With these launches, the company now offers 10 bus models in the country.
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