Volvo Construction Equipment (Volvo CE) India is looking to increase its services business' revenue share from 25% to 33% within a few years.
Dimitrov Krishnan, Managing Director of Volvo CE India said, "We would like to grow and make it one-third from just about one-fourth at present. It's possible because customers are realising the value of services."
This shift hinges on a broader service ecosystem encompassing various offerings beyond equipment sales. This includes the well-timed launch of their Equipment-as-a-Service (EaaS) model, particularly gaining traction for cost-effective electric machinery solutions, with Dimitrov Krishnan, Managing Director of Volvo CE India noting that they have seen successful installations across multiple applications for EaaS.
The latest publicly available data sourced from the Ministry of Corporate Affairs indicates that Volvo CE India registered revenues of Rs 2,177 crore during the quarter ending March 2023.
Beyond new models, Volvo CE India is fortifying its traditional service strongholds. A robust spare parts supply chain is bolstered by a sprawling network of over 300 touch points, ensuring easy access for end users. Technological advancements are also playing a key role. The company leverages telematics to monitor machines, predict part needs, and proactively address potential issues through its "Active Care" subscriptions.
This not only translates to improved uptime but also significant cost savings for customers, as Krishnan emphasises, "Early detection is key." Their Bangalore uptime center acts as the nerve center for this proactive approach.
Recognising diverse customer needs, Volvo CE India offers flexible service options. While mining companies typically favour longer-term service plans, construction firms with fluctuating project demands have different requirements. "We adapt our offerings to cater to these varying needs," explains Krishnan.
Further expanding its service portfolio, Volvo CE India recently partnered with Shri Rama Automall, facilitating used equipment trade-in through their dealer network.