JCB hopes to ride SEZ boom in India
JC Bamford Excavators (JCB), one of the world’s largest manufacturers of construction equipment, is all set to ride the SEZ boom to boost its sales.
By TNN |
PUNE: JC Bamford Excavators (JCB), one of the world’s largest manufacturers of construction equipment, is all set to ride the SEZ boom to boost its sales. India is the second-largest market for JCB and accounts for 15% of the company’s global sales in value terms.
Simultaneously, the company is on an expansion spree here. It has announced investments aggregating Rs 300 crore in two of its manufacturing facilities and a design centre in Talegoan, near Pune. One facility deals in manufacturing components and the other equipment-making.
“India, especially Pune, is important for us both as a market and a manufacturing hub, considering the availability of engineers and trained labour,” said Anthony Bamford, chairman, JCB.
The SEZ boom — at least 150 SEZs are proposed to be set up all across India — coupled with the increase in infrastructure spend on roads and ports is expected to spur domestic demand for construction equipment. Hence, JCB’s growth opportunity estimates for the Indian market.
The company has pumped in nearly Rs 130 crore at the component plant in Talegoan, which was inaugurated by David Cameron, Conservative party leader and head of the Opposition in the British parliament, on Monday. Auto giant General Motors is also setting up its second plant in India, and that too in Talegaon.
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The components manufactured at JCB’s plant will be exported mainly to the UK, China, the US and Germany. The company would invest another Rs 140 crore for the second facility which will manufacture wheel-loading shovels, tracked excavators and vibratory compactors, said John Patterson, MD and CEO of JCB. JCB’s proposed engineering centre would undertake research and development work for JCB globally, he said.
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