Scania sets up Rs.300 crore bus manufacturing plant in Bangalore

Scania Commercial Vehicles India Private Limited inaugurated its bus manufacturing plant at Narasapura, near Bangalore in the south Indian state of Karnataka on March 31, 2015.

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Nitin Gadkari, Union Minister of Road Transport and Highways, Government of India formally opened the facility, which has an installed annual capacity to manufacture 1,000 buses. The company has also recruited 300 workers in the first year.

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From (L-R): Anders Grundströmer, KH Muniyappa, Member of Parliament, Lok Sabha, Kolar Constituency; Nitin Gadkari; Anna Johansson, Minister for Infrastructure, Government of Karnataka and Martin Lundstedt, President and CEO, Scania Commercial Vehicle.

Martin Lundstedt, President and CEO, Scania CV, Anders Grundsromer, Managing Director, Scania India and Senior Vice President, Scania Group and Klas Dahlberg,Senior Vice President Buses & Coaches, Scania Group commemorated the announcement of the manufacturing facility.

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From (L-R): Anna Ryott, Managining Director, Swedfund; Nitin Gadkari; Anna Johansson and Martin Lundstedt.

While speaking on the occasion, Lundstedt said: “Scania’s bus manufacturing facility in Narasapura is yet another milestone in our strategic plans for India. The vision for Narasapura is clear. It is a world class facility serving both the domestic market and becoming a hub for exports to other markets in Asia. Scania has and remains committed to bringing global technology and manufacturing practices to the countries in which it operates. Here in India, we will always strive to create a win-win situation for our partners. The goal is to draw on local talent and competence and combine it with global experience – making all our facilities part of our global network and in turn creating tremendous value across our global value chain. We see Narasapura as an important addition to our global operations and are committed to making it a success. We also know that Narasapura’s success so far and in the future will be enabled by joint efforts of all stakeholders – local suppliers, workforce, state and local governments and we value this partnership.”

Anders Grundströmer Managing Director Scania Commercial Vehicle India and Senior Vice President Scania Group

 Anders Grundstromer, Martin Lundstedt at the inauguration of the plant. 

Scania inaugurated its truck manufacturing plant in the same area in October 2013 by investing around Rs.300 crore. The current annual capacity of the manfuacturing plant is 2,500 trucks and 1,000 buses. The bus factory will also serve as an export hub for regions including Asia, Middle East and Africa over the next five years. What is more, the auto major is aiming at doubling its production capacity by 2,500 buses and 5,000 trucks. The company will also recruit 800 people by the end of 2017.

Grundstromer pointed out: “Scania has been the front runner in promoting sustainable transport solutions globally. We entered India with a vision to provide sustainable transport solutions to the country and formulated various channels for promoting it. The established of our bus manufacturing unit plays a major role in realising this vision for India. The plant will accommodate a state of the art bio-gas unit, which will help in producing alternative fuels locally. With this bus plant we are looking at locally assembling buses and coaches in India and stay true to the vision of Make in India.”

The manufacturing plant in India is Scania’s ambitious venture and a strategic move to drive their global vision to new heights. Scania’s commitment of setting up a large manufacturing plant is in sync with India’s dynamic vision of making the country a new destination for manufacturing. “The Make in India campaign will facilitate the manfacturing sectors to grow rapidly and Scania will be a a true ambassador of this campaign as we will enable large scale manufacturing activities in India and strengthen employment”, Grundstromer added.

Dahlberg said: “The new bus manufacturing facility in India is a great leap towards realising Scania’s global vision. This facility will be used to its full capacity and we are looking at exporting the buses and coaches to the neighbouring countries. The geographical position of India will act in advantage to Scania in connecting with Far East Asian countries, Africa and Middle Eastern countries. India’s new vision favours international players to set up manufacturing facilities in India and we will accomplish our vision in India as well as gloabally.”

Scania’s promise of delivering sustainable transport solutions in India takes a major step forward with the bus manufacturing plant. The plant will house a bio-gas production unit and will locally assemble ethanol buses. The company will also broaden the scope for manufacturing more products powered by alternative fuels, which will catalyse sustainable development in India to a whole new level.

India footprint

Scania has been represented in the Indian market since 20017. In fact, Scania Commercial Vehicles India private Limited was set up in 2011 to strengthen its presence through sales to additional segments of the Indian commercial vehicle market and to widen its offer of sustainable solutions to the Indian market. Since then, Scania has launched a slew of on-road haulage truck models specially adapted for the Indian market – the R580 6×4, the G 460 6×4 and the G 410 6×2 and also off-road P 410 8×4 coal and mining tipper. Scania has a successful partnership with Larsen & Toubro (L&T) in the mining segment.

In the beginning of 2013, Scania launched a new bus range, Scania Metrolink, 12 meter, 13.7 meter, 14.5 meter to meet the burgeoning need of safer, more comfortable connected solutions for the Indian market. The new bus range is purpose-designed for luxury inter-city or charter travels.

Scania has world class experience in mobility solutions run on bio-fuels and Scania brings this unique offer to India. The company handed over its first ethanol run bus to Nagur city. Public transport on ethanol buses is a cost effective way of reducing several of the city’s environmental problems. The solutions developed create the necessary preconditions for both more attractive forms of travel and also better living conditions in city centres, without requiring major investments in new infrastructure. With this ethanol bus, Scania also introduced an engine complying with Bharat Stage V+, which is a huge step to minimise emissions further. Biofuel is the sustainable solution for urban public transport here and now.

Scania inaugurated its first industrial facility in Narasapura, Bangalore in OCtober 2013. With an invest ment of Rs.300 crore, this plant serves as the centre of its industrial and commercial operations in the country. Through its two plants of truck and bus manufacturing, Scania expands its ambition in offering state of the art sustainable mobility solutions. The service workshop and a central parts warehouse is house at the same vicinity. Scania is aiming at selling 2,500 trucks and 1,000 buses a year in the Indian market by 2017 and employing around 800 people at this facility.

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