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Scania’s an all-out bet on India

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When Scania, the commercial vehicles manufacturer, initiated a large-scale effort to grow their presence in India, they came to Business Sweden. Since 2009 Business Sweden has supported them in several steps of the establishment.

Scania had since 2007 a distribution agreement with a local company, providing heavy duty trucks into the mining segment. After careful research, with support from Business Sweden, Scania took the decision in 2010 that serious growth required own presence, local manufacturing, a wider dealer and service network, and a wide PR and marketing push to build the brand in India.

Today, Scania is becoming an established brand not only in the mining segment, but also for haulage trucks, heavy pullers, luxury coaches, and city buses with renewable fuels. Two factories, one for trucks and one for buses, and a model service workshop is today situated at the 40 acre production site in Narsapura, outside Bangalore, employing over 700 people.

- According to a recent study, the population of Indian cities will grow from an estimated 340 million in 2008 to 590 million by 2030. In the face of this, it is critical to improve urban transport and logistic solutions to ensure economic growth and quality of life. In a growing economy of the enormous scale of India, it is paramount to get this right, says Anders Grundströmer, Managing Director of Scania India and Senior Vice President of Scania Group.

Scania part of building the new India

When the company started in India in 2011 the ambition was to sell buses and trucks. Today in 2015 through our strong team of over 700 co-workers we are invested in all the government’s campaigns to build the new India through “Make in India”, “Smart cities” and “Clean India”.

- We see India as an industrial hub in line with Scania’s Global manufacturing facilities and through these facilities and the support of our stakeholders we deliver Sustainable Transport solutions to the Indian market, says Anders Grundströmer.

Business Sweden has worked with Scania along the different phases of the establishment. During the early years, 2009-2010, Business Sweden conducted a market study as support to Scania’s planning team in Sweden. During the initial establishment phase, the expatriated Managing Director and Business Development Team used Business Sweden’s Business Support services in Bangalore during 2011-12. They operated out of Business Sweden’s offices, formally as Business Sweden employees until an own legal entity and office was set up.

"Fruitful association with Business Sweden"

To find and acquire land for production, Scania used Business Sweden’s local knowledge and contacts, in several steps and new investments were decided. As the truck factory was being set up, Business Sweden in 2013 supported Scania’s management team in conducting a deep market analysis across multiple potential segments. Regularly updated, this analysis has served as a key part of the information to the Board of Directors of the Indian entity in the subsequent years. Business Sweden has also worked with Scania on the resource-intensive parts of the PR and  marketing agenda, operating as project leaders for the inauguration of the truck and bus factories in 2013 and 2015 respectively.

- Scania has had a long and fruitful association with Business Sweden since our entry into the Indian market. Business Sweden’s competence and commitment has been a great support in building Scania’s business ambitions. We will continue to build on this co-operation and hope that we will see a combined success in the future too, says Anders Grundströmer.

-  It has really been a great collaboration with Scania over the years. Scania has had very high ambitions in India, and we are proud to have met their ambitions. With a bit of perspective, it is fascinating to see how far they have come since we started working with them, says Gustav Wennerblom, Manager of Business Sweden’s office in Bangalore.