Voltas Limited and the KION Group join forces in India
- Joint venture between two strong players for material handling equipment
- Poised to expand market position in an attractive growth market
- Partnership will give business technology leadership
- KION Group's sixth global brand
Voltas Limited and KION Group GmbH have agreed to establish a joint venture in India for the development, manufacture, marketing, and servicing of forklift trucks and warehousing equipment.
Voltas’s material handling operations will be integrated into a new joint venture company (JV), where the KION Group will hold a majority share. The JV Company will be named Voltas Materials Handling (VMH) and is expected to start operations in April 2011.
As the KION Group's sixth brand, Voltas will be used by VMH to focus on the Indian market with a product range that includes diesel/LPG and electric trucks with load capacities of 1.5 to 16 tons. VMH will have twenty-five branches and dealerships all over India.
Gordon Riske, CEO of the KION Group, commented: "We are proud to welcome Voltas to the KION family of brands. Voltas is one of the most successful forklift manufacturers in India, and will provide our Group with in-depth knowledge of the forklift truck market in India. It has strong sales, an effective service network, and an outstanding local reputation based on its existing product range. As part of our long-term strategy, we intend to further invest within this joint venture to take full advantage of the potential of the Indian market. The joint venture represents a significant step toward expanding our position in one of the world's most promising growth markets."
Sanjay Johri, Managing Director of Voltas Ltd., said, "We are very happy to work with the KION Group . KION has unrivalled know-how and technological leadership in the forklift truck business, so the partnership will help VMH further consolidate its leading position in India. The Voltas brand will continue to expand its product range, particularly in the warehouse equipment sector. The partnership will ensure long-term sustainability, and we are well positioned in the Indian forklift truck market."
Until now, the KION Group has been supplying forklift trucks to India through its Linde Material Handling and STILL brands and is a leading international supplier of material handling equipment to the Indian market. VMH will serve the volume market with its existing, highly competitive product range. Demand in the Indian market is expected to grow rapidly in the course of the country’s dynamic industrialization. VMH is well positioned to take full advantage of the potential of the Indian market as one of the world´s most promising growth markets.
Voltas was advised by KPMG on the transaction.