Mumbai: 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. The product range will include diesel/LPG and electric trucks with load capacities of 1.5 to 16 tons.

Voltas's material handling operations will be integrated into a new joint venture company (JV), with the KION Group holding a majority share. The JV will be named Voltas Material Handling (VMH) and is expected to start operations in April 2011.
Until now, the KION Group has been supplying forklift trucks to India through its Linde Material Handling and STILL brands. As the KION Group's sixth brand, Voltas will primarily concentrate on the Indian market from its local manufacturing base. VMH will serve the volume market with 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," said Gordon Riske, CEO of the KION Group.

"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," he added.

"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," said Sanjay Johri, Managing Director of Voltas Ltd. "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."

Demand in the Indian market is expected to grow rapidly in the course of the country's dynamic industrialisation.

VMH will have twenty-five branches and dealerships all over India.