The Hindu Business Line : JCB to pump in $50 m to expand capacity

THE UK-based JCB, one of the world's top five construction equipment manufacturing company, will make a fresh investment of $50 million for expanding its excavator production capacity.

The new factory would have an annual installed capacity of 6,000 excavators. The new facility, expected start production by next year, is being set up adjacent to its existing facility manufacturing components for India and its global requirements.

JCB entered the Indian market in 1977 and consolidated itself through a joint venture with Escorts Group in 1979.

The market leader in the construction equipment, JCB raised its stake to 100 per cent in the joint venture to set up its own subsidiary in 2003.

Addressing a press conference at the Excon 2005, which opened here focusing on the latest equipment and technology in the construction industry, Mr John Patterson, Managing Director and CEO, JCB, said the new factory will start with the production of its latest higher capacity JS 200 Excavators, launched at the current Excon exhibition.

With India emerging as a major market for construction equipment, JCB already invested Rs 550 crore on its plant in Ballabgarh in Haryana and the first unit in Pune for range of its products.

The investment has further consolidated its market in India where it grew by 50 per cent in the last five years. It hoped to maintain the momentum till 2010, Mr Patterson said.

"JCB's investment in the new plant and development by JCB India of the JS 200 underlines our commitment to India," he added.

Mr Onkar Singh Sunar, Managing Director of JCB India, said the company had constantly worked towards indigenisation of its products with a few of them having local content ranging from 60 to 97 per cent.

He said JCB India had 11 different machines, including backhoe loaders, loading shovels, excavators and tracked excavators.

He said JCB had displayed a few new products at the exhibition to elicit feedback fro the Indian market.

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