The Hindu Business Line : JCB inaugurates export-oriented component making facility near Pune

Global construction equipment major JCB inaugurated a Rs 130-crore export-oriented component manufacturing facility at Talegaon near Pune and backed up the move by committing an additional investment of $30 million for a new plant that will manufacture a range of equipment including tracked excavators, two months from now.

The company also announced it is in the process of setting up an engineering centre on its 100-acre campus by the end of this year that will undertake design and development work for its global requirements. The centre will eventually house over a hundred engineers.

"India is now JCB's second largest market and sales have quadrupled in the last five years... JCB is a market leader in India and it is important we continue to invest heavily to keep pace with the growth we anticipate in the future," Mr John Patterson, JCB, Managing Director and CEO, said. India accounts for 15 per cent of JCB's global sales and 20 per cent of its global production happens out of the country.

India's significance in the company's global radar was highlighted by the fact that JCB Chairman, Sir Anthony Bamford, was present for the inauguration accompanied by Great Britain's Conservative Party leader, Mr David Cameron, MP, who officially inaugurated the new plant. He was accompanied by Shadow Chancellor of the Exchequer, Mr George Osbourne.

"India is a significant market for us. Thirty years ago when we set up shop here, there were so many restrictions and licenses but enormous liberalisation has taken place in the last few years and it is now an exciting country to do business with," Sir Anthony said.

"This new plant demonstrates the changes taking place not just in India but also in the global economy. It also highlights the benefit of a new relationship between India and Britain to met the challenges of the changing world economy," Mr Cameron said.

The Pune facility, meanwhile, currently exports components to JCB's global operations including Germany, the US, UK and China, according to Mr Alan Thomson, Managing Director of the Pune operations, who also said production is expected to go up from the level of 3,500 tonnes of steel fabrication to 5,000 tonnes by next year. Turnover from the Pune facility will simultaneously go up from this year's £17 million pounds to £30 million pounds next year, he said.

The company is, meanwhile, planning to kick off production of a range of complete machinery from a new plant that is coming up adjacent to the components plant, two months from now. The new plant will manufacture tracked excavators, wheel loading shovels and compaction machines, Mr Patterson said. The company's existing plant at Faridabad is, meanwhile, also simultaneously going through a $15-million overhaul and upgradation, he said.

JCB has three plants in India including a backhoe loader facility at Ballabgarh near Delhi. The company has sold more than 45,000 machines in India with one out of every two construction machines sold here being made by the company.

More Stories on : New Projects | Engineering | Maharashtra

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page