Construction equipment maker JC Bamford Excavators Ltd is gearing up to expand its product portfolio in India to cater to the domestic market and exports in the region.
The UK-based world’s largest manufacturer of backhoe loaders is significantly expanding its manufacturing capability with a view to making India a major manufacturing hub for fully build equipment, engines and parts for global markets, including the UK.
India has emerged a strategic market to serve the markets in the region such as South Africa, Malaysia and few other countries in the region, Anthony Bamford, Chairman of JC Bamford, said.
Infra sector to gain momentum
During a visit to the UK headquarters of the $4.5-billion (£2.7 billion) company, Bamford said India now accounts for a significant chunk of the business and this is expected to go up as the infrastructure sector growth picks up.
In 2012, globally the company launched 66 new products, including 23 excavators and expects to surpass this number during 2013. Of a product portfolio of over 300, it currently offers seven product lines with over 24 variants in India. One out of every two equipment sold in India is made by JCB.
Indian market potential
As its new plants get commissioned in Rajasthan by first half of next year, the company is looking at rolling out more products from India. Apart from backhoe loaders, where it is a market leader, JCB India offers excavators, compactors among others.
Referring to potential of construction equipment in India, Bamford, along with senior members of his team, Alan Blake, CEO and Graeme Macdonald, CEO-Designate, said, infrastructure in India is not complete and the economy is passing through a tough cycle. But there is huge potential for growth.
Growth may turn tepid
From a global investor perspective, Bamford said there seems to be some vacuum in terms of overall policies and their implementation. The Finance Minister and the RBI have done well but with elections to be held next year, there could be a phase of tepid growth.
JCB is optimistic that the Indian economy and the construction sector will get better. While most economies around the world struggled during the 2008-09 global economic crisis, India handled it the best, he said.
JCB India expects construction, road building, earth moving and waste management among key sectors driving the demand for its equipment in India. While the mining sector in India has potential for JCB equipment, but requirements in India is different from some other regions.
On the growth potential, Bamford expressed confidence that JCB would grow at a higher pace than the country’s growth rate.
>rishikumar.vundi@thehindu.co.in
(The writer is in London at the invitation of JCB.)