JCB India, the Haryana-based wholly owned subsidiary of the $2-billion JC
Bamford Excavators Ltd., of UK has ambitious plans for its Indian operations
a new dealership in Andhra Pradesh, Onkar Singh Sunar, managing director,
JCB India told the press that JCB was expanding operations in India and was
setting up new plants in Pune and Delhi.
He said the company is setting up a new plant in Pune with an investment outlay
of $100 million (Rs 450 crore). The plant would be developed into a manufacturing
hub for the company's markets in South-east Asia and globally. It would manufacture
various parts that go into construction-related equipment and excavators.
company is also planning to set up a second plant in Delhi with an investment
of Rs100 crore.
said the plant in Pune would be financed through internal accruals. He said,
"We are upbeat about the construction industry in India. The country
has high requirements of infrastructure and road building and it is not possible
to handle all construction work with human support. Therefore, we foresee
that that construction-related equipment and excavators will increasingly
be used in the country with the market projected to grow by over 50 per cent
this year," he said.
the company's 37th dealership in the country, Sunar said, "About 50 per
cent of new customer additions in the country was through existing clientele.
This called for better service facilities. Therefore, we are investing significantly
in strengthening existing dealers and expanding the footprint."
2004, the company sold about 2,500 units of equipment for various requirements
and this year JCB hopes to cross the 7,000-mark driven by increasing usage
of construction related equipment.
Asia Pacific region accounts for a significant chunk of the company market
and this has prompted us to establish a centre in China," he said.
from expanding operations, JCB is launching a range of equipment for excavation
requirements. The southern market accounts for about 30 per cent of the total
JCB sales in India and Andhra Pradesh has emerged as a key growth area.
company sold 38,000 machines last fiscal globally. It has manufacturing facilities
in UK, US, Brazil and China.
present, in India the company has one facility in Delhi and is setting up
another in Pune, which would begin operations by June this year."
year the company sold 5,500 machines in India and is targeting sales of 7,000
machines this fiscal.
company is also focusing on the Southern market as it has grown to be its
biggest market in the country so far contributing 30 per cent of its revenues.
He said Andhra Pradesh alone contributed five per cent revenues.
newest dealer MGB, a Rs100-crore company with branches at Kurnool, Warangal,
Khammam and Nizamabad is targeting to sell 200 machines this fiscal.
company is planning to add new machines to its existing product range, which
include excavators of 13, 20 and 33 tonne capacity. The company's other products
include backhoe loaders, loading shovels, tracked excavators and skid steer
India been growing at the rate of 40 per cent and 45 per cent in the past
three years and has a market share of 80 per cent in excavators in India.