Page 46 - CV Aug-Sep 2023 Issue

The Centre has budgeted a 36% grow by 2-3 times by 2030. Not only that, forward, we will be investing in R&D work
increase in its capital spending to a with the direction that the government for hydraulic excavators, which are the
record Rs 7.5 lakh crore this fiscal year, has set when it comes to sustainable bigger markets,” said Krishnan.
with a focus on infrastructure power solutions as relates to the
development to spur growth. electrification or use of alternative fuels, Volvo will invest in R&D for the diesel
India will lead the way,” Krishnan said. engines products, and also in future for
Despite the pandemic, road construction India is currently the third largest for the sustainable power solutions driven
activity also has been strong - both in industry, after the US and China. options.
FY21 and FY22. Last year, the
construction activity reached close to 29 To cash in on the potential, Volvo CE is Apart from local sales, Volvo CE is also
kilometers per day. With an increase in investing heavily in developing products working at growing exports out of India.
tendering activity, Krishnan expects road tailored to suit the local market, and aims The company currently exports about 15-
construction to grow further this year. to treble sales to about 6,000 units in the 20% of its production out of India to
Overall, the market is poised for growth next five years. markets in Southeast Asia, African, Latin
in the next few years and is expected to America and neighboring countries like
become the second largest in the world “So, our focus toward serving the Indian Nepal, Bhutan, Bangladesh and Sri
for construction equipment by the end of customer is both by localization of Lanka. It has the capacity to produce
the decade. product and also doing a lot of 3,500 units per annum at its
engineering work out of India. We have manufacturing facility, with utilisation
“It's a market that has huge potential. Our so far developed road compactors and levels in the range of 60-70%.
estimate is that the Indian market will pavers with local R&D teams. Going

CONSTRUCTION VISION 44 AUGUST - SEPTEMBER 2023