JCB, the earth-moving and construction equipment company, has started manufacturing engines at its Indian plant, which has been built at a cost of Rs 135 crore.
Growth slowdown
JCB India, a subsidiary of JC Bamford Excavators, UK, had posted revenues of Rs 4,950 crore in 2010-11, up 45 per cent compared to the previous financial year. However this financial year, revenue growth this year is likely to slow down to 15 per cent in the 2011-12.
“The rate of growth... we expect to slow down,” the Managing Director and CEO, Mr Vipin Sondhi, said in a press statement. “I would estimate 15 per cent-plus (growth in the current fiscal).”
Mr Sondhi said currently, the 16-valve, ecoMAX engine is being manufactured at Ballabgarh plant. This is the first time that JCB is manufacturing engines outside the UK.
“We are making this fresh investments at a time that infrastructure has become a key theme for all the political parties and there are visible signs that the ‘government is getting back to clearing large projects' which is positive for us,” he added.
JCB, which has more than a 50 per cent share of the construction equipment market in India, sold 21,000 machines in the country in the 2010 calendar year.
The earth moving giant has three manufacturing plants in India, exports machines to neighbouring countries and Indonesia and Africa as well, with these shipments accounting for Rs 300-400 crore of its total revenues.
“But we expect this (India) will become increasingly a manufacturing base for at least this part (South-East Asia and West Asia) of the world,” Mr Sondhi said.
JCB is expected to launch a range of new machines, including wheeled loaders and backhoes (digger), excavators and lift-alls, at EXCON 2011, exhibition on construction equipment and technology, which kicks off here on November 22.