JCB achieves 70-80 per cent localisation

JCB India, a wholly-owned subsidiary of JCB, the world's fifth largest construction equipment maker, has indigenised its equipment in India to the extent of 70-80 per cent and has thereby been able to penetrate the Indian market.

Addressing a press meet to announce the launch of the JCB JS200 excavator here recently, Onkar Singh Sunar, managing director of JCB

India, said the company has achieved 97 per cent indigenisation of backhoe loaders, 60 per cent of loading shovels and 75-80 per cent of excavators.

"This has been done to bring down the cost and penetrate the market. The company presently dominates the Indian construction equipment business," he added.

Since its inception in 1979, the company has produced 25,000 machines, has 11 models and has built up 38 dealers and 153 sales and service outlets in the country.

Indigenisation of construction equipment has given the company competitive edge in exports and it is working out a strategy to become part of the company's global supply chain.

Announcing the launch of the JCB JS200 excavator, John Patterson, managing director and CEO JC Bamford Excavators, said maximum indigenisation had taken place. Explaining the JS200, Onkar Singh Sunar said it has stability and the highest load lifting capacity among 20 tonne machines in its class.

The new machine has the highest breakout forces in its class, which ensures the fastest cycle times even in tough strata resulting in increased productivity. The cab has modern styling with high strength, pressed steel frames with rolled sections which in turn ensures safety, comfort and round visibility. Another benefit is the excellent 'digging envelope' which can meet all the application needs in this segment.

Patterson also said the company plans to invest $50 million to construct a new plant at Pune dedicated to producing excavators for the Indian market. "The first machine is to go into production in 2006," he added.

This new factory will be built adjacent to the existing factory which was completed only a few months earlier and is now producing a wide variety of fabricated components.

The excavator factory will be the latest in a series of investments made by JCB in India which also includes substantial investments made at the Ballabgarh plant where a new paint plant, conveyor production line and transmissions area have recently been added.

"JCB India plans to sells 7,000 machines this year and we are convinced of the potential for further growth in India," Patterson emphasised.