Earthmoving and construction equipment maker JCB India today said railways and irrigation are two sectors that will push growth of construction equipment industry even as it pegged their overall growth to 10-15 per cent for 2017.
"We expect 10-15 per cent growth this year. But it is not enough. If there is infrastructure deficit in the country then earth has to be dug into. Therefore, if railways and irrigation come up with their projects, then it will give boost to our industry," said JCB India MD & CEO, Vipin Sondhi.
The backlog of projects in railways and irrigations must be cleared soon, he added.
Sondhi said that at present, roads and highways sector is leading the growth in construction equipment industry. "We are actually seeing work happening in roads and highways projects," he said, adding that during January-April this year, the industry grew by 10-15 per cent.
Sondhi said the industry posted a growth of 45 per cent in 2016 after witnessing 50 per cent de-growth during April 2012-September 2015.
"Because of various factors like policy paralysis, land acquisition issues, the de-growth in the industry was to the extent of 50 per cent during April 2012 till September 2015. The industry is now back to 2011 year level," he said.
Sondhi also said that the construction equipment industry is expected to cross USD 6 billion by 2020.
The JCB India MD also stressed on the resolution of non- performing assets in the banking industry to bring back private investments for growth.
JCB India achieved a total turnover of Rs 8,000 crore in 2016, of which 20 per cent were exports, mostly to Middle East, South East Asia and Africa.
JCB has three plants located at Ballabhgarh (Faridabad), Pune and Jaipur.
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