After a four-year-long slump, road construction activity has picked up since January this year, riding on the rise in public spending. But this is far behind the 2011 levels.

According to Vipin Sondhi, Managing Director and CEO, JCB India, the company witnessed 40 per cent jump in sales of construction gears during January-June 2016. This is against an over 40 per cent market squeeze between April 2012 and September 2015. “From January to June the growth has been exponential (13,000 units). The industry does not expect the same to sustain throughout the year. So a 20 per cent stable growth can be considered as a good one for 2016,” he said.

He is expecting the demand for his gears to touch the 2011 level (27,000 units) next year.

Sondhi said the Centre’s initiative to inject fresh blood in the system through public spending and improved payment cycle by NHAI (National Highways Authority of India) are making the difference.

The Indian arm of the UK-based JC Bamford Excavators follows calendar year for accounting purposes.

Apart from roads sector, the company’s gears are also used in the real estate sector that continues to be in doldrums. Sondhi is not expecting any immediate up-turn in real estate activities. The company’s facilities at Faridabad and Pune are currently operating at “over 80 per cent capacity” that too at the traction of export sales contributing 20 per cent of revenues. Exports were pushed to survive a slow down in Indian market. JCB India looks after Nepal, Bhutan, Bangladesh and Sri Lanka. Supplies to neighbouring markets apart, JCB also executes orders to other markets — such as West Asia , Africa and so on — through its “global sales network”.

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