Volvo CE sees continued growth in construction equipment industry

A.M. Muralidharan, managing director, Volvo India Pvt. Ltd., said that the Indian construction equipment market has been growing since 2009. In India, the market for construction equipment is growing at a rapid rate, based on the growth in infrastructure, new projects, increased investments and the growing entry of foreign and domestic players into the market. The Indian construction equipment market stood at Rs 169.8 billion (US$ 3.5 billion) in 2009 and is growing at a compounded annual growth rate (CAGR) of 22%, buoyed by the rapid development of infrastructure. Further investments planned by the Indian government are expected to drive the market forward, Muralidharan said. He added that the country’s infrastructure industry shows much growth potential and plenty of opportunities for investment. “We see the construction industry on the rise and foresee a positive trend in equipment purchase with more players entering into the aggregate industry. Some factors that are currently driving the demand for construction equipments in India include heavy investments in various infrastructural projects by public and private enterprises, in areas like road construction and maintenance, ports, power plants, telecommunication sector, urban infrastructural developments etc. Additionally the entry of international and domestic players has led the market to open up,” Muralidharan said.
Volvo Construction Equipment expansion plans
Volvo Construction Equipment’s plant in Peenya produces pavers and compactors and it is currently at 100% of its installed capacity of 800 units. Volvo CE is one of the largest manufacturers of construction machines in the world. Out of the industry volume of 2,500 machines per year, Volvo CE has a market share of 22-24%. Last May, Volvo invested Rs90 crore (US$18 million) for the production of medium-sized excavators. Production is expected to begin by the end of 2011. Volvo also announced plans to manufacture two basic models of 20-ton and 30-ton capacity excavators at the Peenya facility. Plans include the production of two to three variants of each of the basic models. (September 8, 2011)