The company's wholly-owned subsidiary 'JCB India' will set up the plant on a 115-acre area here. "India is our largest market in the world. It is very important and strategic for us. After becoming a strong player in the domestic market, we are now gradually increasing exports from here," JCB Group Chief Executive Officer Alan Blake told PTI in an interview here.
JCB India sold around 26,000 units of earthmoving and construction equipments during last year, contributing about 30 per cent to the parent's global sales.
The company also exported 1,000 units to East Africa, Middle East and South East Asia in 2012 compared to just 330 units during the previous year.
"We are now ramping up our operations here. We will invest Rs 500 crore to set up a greenfield facility near Jaipur," Blake said.
The plant, to be constructed at Mahindra World City SEZ, will be operational by second quarter of 2014 and will start with fabrication work.
"India is a very important market for JCB and our investment in Jaipur is a vital next step that we are taking to further strengthen our position in this growing market," Blake said.
Commenting on employment, JCB India Managing Director and CEO Vipin Sondhi said the company will hire 1,300-1,500 people for the new plant over the next 4-5 years.
The company currently employs around 3,200 people in India, out of which 2,500 people are permanent. JCB has three operational manufacturing facilities in India -- one at Ballabgarh in Haryana and two at Pune in Maharashtra.
On revenues, Sondhi said: "Last year, we clocked Rs 5,500 crore and it was 10-15 per cent down compared to 2011. This year, we are expecting a flat performance."
JCB India has one R&D centre in Pune and has about 200 engineers there. It currently has 58 dealers and over 500 outlets across the country.
Globally, the company had clocked a revenue of $ 4.1 billion last year. It sells its products in 150 countries and employs around 10,000 people.