 KION CEO Gordon Riske |
KION Group and Voltas Ltd have agreed to establish a joint venture in India to develop, manufacture, market and service forklifts and warehouse equipment.
Last year, KION reinforced its interest in the Chinese low-end market after taking control of its joint venture company with Chinese manufacturer Baoli
(Forkliftaction.com News #464). The group's latest joint venture with one of India's leading forklift manufacturers is expected to give Voltas technology leadership and KION a foothold in another emerging market.
Voltas, which manufactures an array of industrial products, will integrate its materials handling operations into a joint venture company, with KION Group as the majority shareholder. The new company, Voltas Material Handling (VMH), is expected to start operations in April.
KION spokesman Michael Hauger tells
Forkliftaction.com News that Voltas's current management team will continue running the forklift business.
"We will start with the employees of the Voltas materials handling business," Hauger explains when asked if new staff would be hired.
He adds that KION does not intend to transfer a large number of its staff to Voltas as the company's materials handling business is already led by a highly experienced team. "Like in all our international activities, we strongly believe in the success of the local management, which is very close to customers and markets."
Hauger says Voltas forklift users will continue to enjoy the high reliability of Voltas products and employees that they are used to but can expect a larger product range in the future.
"In a first step, Voltas and KION will work on further expanding the product range especially in the area of warehouse trucks."
As KION's sixth brand, Voltas will primarily target the Indian market from its local manufacturing base. The current product range includes diesel/LPG and electric forklifts with 1.5-16 ton load capacities. VMH will have 25 branches and dealerships in India. Before the joint venture, KION had been supplying forklifts to India through its Linde Material Handling and Still brands.
KION Group CEO Gordon Riske says the joint venture is a significant step towards the company's expansion into "one of the world's most promising growth markets".
"Voltas is one of the most successful forklift manufacturers in India and will provide our group with in-depth knowledge of the forklift market in India ... As part of our long-term strategy, we intend to further invest in this joint venture to take full advantage of the potential of the Indian market."
Voltas Ltd managing director Sanjay Johri says the partnership will ensure the business's long-term sustainability as it benefits from KION's "unrivalled know-how" and technological leadership in forklifts.
KION Group will not disclose the financial details of the transaction as they are still subject to certain adjustments. With its Linde, Still, Fenwick, OM and Baoli brands, KION is the leading European forklift manufacturer and has consistently ranked second in world forklift sales, after Toyota. In 2010, the group generated revenue of over EUR3.5 billion (USD4.958 billion) and employed about 20,000 people.
Mumbai-headquartered Voltas Ltd, established in 1954, offers engineering solutions for a wide spectrum of industries in areas like heating, ventilation, air conditioning, refrigeration, textile machinery, mining and construction equipment, and materials handling equipment.