Leading truck and bus manufacturer Scania plans to set up an industrial facility in Bangalore this year with an investment of Rs.150 crore. The industrial operations will consist of final assembly of truck and bus chassis and bodywork and fitting out of complete vehicles. The head office of Scania’s Indian company, completes with a service workshop and a central parts warehouse, is also being built at the same site.
The Scania Regional Product Centre, India will also be the centre of the company’s commercial operations in the country. Scania plans to sell about 2,000 trucks, 1,000 buses and 1,500 engines per year in the Indian market within the next five years.
Henrik Fagrenius, Managing Director of Scania Commercial Vehicles India said, “The manufacturing of complete trucks locally in the country means that we can cut lead times further and broaden our product offering”. The facility is being constructed in an industrial area 40 km east of Bangalore, production is expected to start in early 2013. “Almost 800 people will be employed at the facility in the longer term”, he informed.
The facility in Bangalore is Scania’s seventh Regional Product Centre. The others are in Russia, Dubai, South Africa, Malaysia, Thailand and Taiwan.
Scania has been represented in the Indian market since 2007, when a partnership was initiated with Larsen & Toubro (L&T). L&T has successfully established Scania’s trucks and services and has developed a close partnership with customers in the mining industry. L&T currently operates about 10 Scania service workshops at various mining sites in the country.
