31 January 2012 8:00 / Scania India
Scania to set up new manufacturing facility in Bangalore
Bangalore, 31 January 2012: Scania Commercial Vehicles India will set up a plant in Narasapura Industrial Area, Bangalore. This plant will serve as a Complete Knock Down assembly unit for truck and bus chassis during phase 1 of operations. Bus body building of city buses and coaches and service workshops for trucks and buses will also be part of this facility at a later point of time. Scania will employ up to 800 people in this facility over the next five years.
Company to invest Rs. 1.50 bn in the coming year
First truck to roll out in 2013
Scania had last year announced its plans for India and the growing importance of India for Scania globally. The investment in India is in line with this commitment towards this market.
Scania envisages around 2000 heavy haulage trucks and 1000 inter-city buses and coaches to be rolled out from this plant within five years. Besides these vehicles, Scania is also preparing to sell engines to its OEM customers. These engines are more compact, resulting in lesser fuel consumption, leading to lower emissions.
Said Henrik Fagrenius, Managing Director, Scania, “This investment furthers Scania’s committed to the Indian market and this is the right moment for us. With the commercial vehicles segment likely to register a higher volume growth of 8-10 per cent this year, the outlook for the industry is very promising.”
Scania’s direct presence will further boost the company’s sales, service, greater variety of models sold and shorter availability time. Scania provides high service levels that give high uptime and low operational cost to customers. Scania’s strategies for India are innovative, offering value through lower total cost of ownership, for customers and will bring in the best products and services.
Scania foresees a number of benefits with establishing the new plant. Said Henrik Fagrenius, Scania, “This unit will enable us to shorten our lead times and enhance service levels to our customers. This will also go a long way in sourcing of components locally from India”, he added.
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Scania is one of the world's leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines. Service-related products account for a growing proportion of the company's operations, assuring Scania customers of cost-effective transport solutions and maximum uptime. Scania also offers financial services. Employing some 35,500 people, the company operates in about 100 countries. Research and development activities are concentrated in Sweden, while production takes place in Europe and South America, with facilities for global interchange of both components and complete vehicles. In 2010, net sales totalled SEK 78 billion and net income amounted to SEK 9.1 billion. Scania press releases are available on http://www.scania.com/
In India, Scania is present through its partner Larsen & Toubro (L&T) since 2007. Scania has several sales and service points through L&T. So far, L&T has distributed and supported over 600 heavy trucks in India. This relationship will continue.
Scania has now formed a new company: Scania Commercial Vehicles India, which will establish a plant for bodywork and undertake the outfitting of trucks and buses, and provide a parts depot within the country. Scania will be selling on-road trucks and buses in India. Visit http://www.scania.in/ for more information.