JCB expects 20% growth over 2 years

Faridabad-based earth-moving equipment manufacturer JCB India Ltd is expecting a 20 per cent growth in its sales over the next two years, with large infrastructure projects taking off in the country.

"We are modernising our manufacturing facilities in Faridabad to meet the increased demand. A number of large infrastructure projects had been announced by the previous government and we expect this government to continue with the thrust on this structure," said a JCB India executive.

Last year, the company had a turnover of close to Rs 550 crore and it produced nearly 5,000 machines. The firm claims it has nearly an 80 per cent market share in construction and mining equipment like backhoe loaders, and it contributes more than 10 per cent in terms of sales volume to JCB's worldwide sales. JCB has a presence in nearly 150 countries and clocked global sales of about $1.75 billion in 2003.

JCB's machines are extensively used in desilting water bodies like lakes and rivers, and with the finance minister's budgetary proposal of launching a massive scheme to repair, renovate, and restore nearly 500,000 water bodies directly linked to agriculture, the company could benefit immensely.

According to a company official, JCB's expansion plans are on track and it has achieved nearly a 90 per cent indegenisation of its products. It offers machines in four product categories like tracked excavators, backhoe loaders, loading shovels, and skid steer loaders.

The company, formerly known as Escorts JCB, employs nearly 550 people and is one of the largest manufacturing concerns in Faridabad. In 2002, JC Bamford Excavators Ltd bought out Escorts group's 40 per cent stake in the joint venture.