Construction and agriculture equipment major JCB expect the bulk of its revenue to come from its Indian operations by 2018. Currently, JCB India’s contribution to the company’s global revenues stands at 17%, according to JCB's global chairman Sir Anthony Bamford. Revenue from India includes exports. Currently, the Indian operation clocks around Rs 6,000 crore and the company plans to grow at 10-12% in the next financial year, says Vipin Sondhi, managing director and CEO of JCB India.
Sondhi says that during January-November this year, the industry grew at 45% over the same period last year. The last time the industry showcased such impressive performance was in 2011. According to industry data, one out of two construction and earth-moving equipment sold in India is a JCB machine. The industry registered 42,887 sales between January and October 2016 compared with 29,393 units a year ago.
JCB caters to the roads, highways, irrigation, railways and real estate sectors. But, the real estate sector has been stagnant in the past three years and there is no sign of an uptick in the short-term. Currently, growth is coming from roads, highways and irrigation sectors.
JCB India exports fully built vehicles and components to nearly 65 countries. JCB India’s 400-strong engineering team also helps the global design centre in the UK, Sondhi adds.
Sondhi notes that despite the downturn, the company has invested heavily in products as part of its transformation journey to become a one-stop solution for wider and heavier products.
He notes that the company exported 2,500 fully built machines last year, apart from components.