Bolstered by blistering GDP growth and a sharp increase in infrastructure investment in the country, JCB India has decided to invest Rs 200 crore to double its capacity of earth-moving and construction equipment by next year.
India was emerging as one of the fastest growing major economies and infrastructure would play a key role in sustaining this growth, said Mathew Taylor, Chief Operating Officer, JCB UK, which bought out Escorts’ stake in 2003 to make it a wholly owned subsidiary. In terms of unit sales per annum, the company has grown three times since 2003. In 2006, it sold 10,000 units with annual revenues of Rs 2,000 crore as against 3,500 units in 2003.
The demand for construction equipment was expected to witness phenomenal growth in the medium to long term, Taylor sad. The industry is growing at 35 per cent a year and JCB has 50 per cent of the market share.
The company is manufacturing 18 models of excavator loaders, front-end loaders, articulated loading shovels, tracked excavators, tele-handlers, vibratory compactors and skid steers. Going forward, JCB would increase its range of the products to suit the demands of the market, Taylor said
He added that India was a key country for JCB, which has manufacturing bases in six countries–the UK, Brazil, Germany, China, India and the US. In terms of unit sales, India is second only to the UK.
Besides covering the domestic market, the Indian venture has started exporting in South East Asia. Manufacturing costs in India were lower than the other countries, Taylor said.