JCB India is most likely to commission its construction equipments plant in Jaipur, Rajasthan by 2014. The greenfield project is coming up at a 115-acre site in Mahindra Lifespace Developers’ Mahindra World City SEZ in Jaipur.
JCB’s construction equipments project is estimated to cost Rs 500 crore and will be developed in two units. Unit-I of the project is expected to commence production by April 2014, while Unit-II is expected to be ready by June 2014. The project will be JCB’s fourth plant in India.
The project was envisaged by JCB in 2012 for expanding its manufacturing operations in India. The project was cleared by the Rajasthan state empowered committee in June 2012. In November 2012, JCB signed a land-purchase agreement with Rajasthan government for the equipments plant.
Foundation stone for the project was laid by Ashok Gehlot, Chief Minister of Rajasthan on 3rd May 2013.
JCB India is the fully owned subsidiary of the UK-based world’s largest manufacturer of earth-moving, agricultural equipment and materials handling equipment. JCB, which began operations in India in 1979, currently operates three plants in India; one in Ballabgarh, Haryana and two in Pune, Maharashtra.
The Ballabhgarh plant is the largest backhoe loader plant in the world. Out of the two equipment plants in Pune; one manufactures export oriented fabrications and components while the other manufactures heavy equipment like Tracked excavators, Wheeled Loaders and Compactors.
In 2009, JCB announced plans to make India its largest manufacturing hub. Over the recent years, JCB has directly invested over Rs 1,250 crore in India. India is now JCB’s single largest market in terms of volume. JCB has established itself as the market leader in India with an estimated market share of over 50 per cent.
In 2012, JCB India sold around 26,000 units of earthmoving and construction equipments, contributing about 30 per cent to the parent’s global sales. About 10-12 per cent of equipment produced in India is being exported to markets like Africa, Malaysia, etc.
Owing to the huge scope for development in India’s infrastructure, the Central government has envisaged an investment of $1 trillion in infrastructure during the 12th Plan (2012-17). Construction Equipment market in India is expected to grow at a CAGR of 18.52 percent over the period 2012-2016, citing a clear opportunity for equipment manufacturers.
Thus, even with the economic slowdown, JBC is pretty optimistic about the Indian market and over the coming years, plans to expand its product portfolio in India along with stepping up exports. Further by commissioning its fourth plant, JCB India will definitely strengthen its position as a market leader in the Construction Equipment industry in India.