JCB India revenue rises to Rs8,100 crore in 2017
JCB India’s increased revenue from Rs5,550 crore in 2014 to Rs8,100 crore at the end of 2017 is helped by the Union govt’s focus on building infrastructure across the country
New Delhi: JCB India Ltd—the largest manufacturer of construction equipment in the country—increased its revenue from Rs5,550 crore in 2014 to Rs8,100 crore at the end of 2017, helped by the Union government’s focus on building infrastructure across the country.
The UK-headquartered firm has been focusing on exports in the last five years in order to reduce its dependence on the domestic business.
According to data released by the company, it exports to 93 companies around the world from India. Its new manufacturing facility in Jaipur, established in 2014, is already exporting to 53 countries which is expected to increase in the near future.
On the sidelines of a “Made in Rajasthan” event organized by the company at its Jaipur facility, Anthony Bamford, chairman, JC Bamford Excavators Ltd, told Mint that each year has been better for the company domestically, but that JCB is exporting as well and the export market work in different cycles to the Indian economy.
“This (Jaipur) plant exports to around 50 countries and rest of the plants exports to 90 countries. Here it is gradually building up. Just a few minutes before I met some large customers from Saudi Arabia who were saying how good the machines are that we manufacture here,” Bamford said.
JCB India Ltd started domestic operations in 1979 and has five manufacturing capacities in three locations—Ballabhgarh in the National Capital Region (NCR), Pune and Jaipur.
The economic slowdown before the 2014 elections took a toll on the company with volumes declining year on year but with the National Democratic Alliance government announcing huge investments in the infrastructure sector, including railways in this year’s budget, the top management of the company is expecting the current growth momentum to continue.
“The present government focused a lot on public investment in infrastructure though we are still waiting for the private investment in infrastructure. In fact, we are getting a lot of foreign investment. The industry is growing as a whole and JCB is growing with the industry. We have the largest product range (50 products) in India and are made to one global quality,” said Vipin Sondhi, managing director and chief executive officer, JCB India.
As of now the company has 650 sales and service outlets across the country and every year around 50 outlets are added to the tally.
According to Graeme MacDonald, chief executive officer, JCB Group, India, 2017 was a good year for the sales of construction equipments globally as volumes increased by 20%. Equipment sales in India were around 60,000 units while the same in China stood at 200,000 units. Hence the company thinks there is huge potential in India.
“We have major investment and expansion plans in India and in the last four years it has certainly been better and easier to do business in India. Currently we manufacture three different product ranges in the Jaipur plant and our plan is to introduce more product groups in this plant,” added MacDonald.
“I would expect the road construction sector to grow by the 10-12% this year given the kind of the investment the government has announced. Though the real estate construction has slowed down, most of the heavy equipment will be needed in road sector. So if infrastructure development in roadways and railway sector sustains then the construction equipment sector would do well,” said Kumar Kandaswamy, partner, Deloitte India.
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