JCB India embarks on huge expansion programme in India
Kolkata, Nov 22 (UNI) JCB India Limited, a wholly owned subsidiary of the world's largest earthmoving equipment manufacturer, has embarked upon a massive expansion programme to make greater inroads into the Indian market with a total investment of Rs 500 crores by next year.
This was announced here today by JCB India Limited Managing Director Vipin Sondhi while speaking to newsmen here today. He also announced the company's plan to launch a number of new products in the Indian market by next year to meet the diversified demand from the Indian buyers.
Highlighting his business strategy in the country in the wake of ongoing boom in infrastructural sectors requiring a wide range of heavy earth moving machineries, Mr Sondhi said as the demand for different earthmoving equipment like heavy excavators, Telehandling and Compaction equipment was steadily increasing in all parts of India JCB had decided to expand the capcity of their Ballabgarh plant in Haryana with an investment of Rs130 crores besides making it most modern and sophisticated.
" This apart we have decided to set up two separate units in Pune not only to cater to the Indian demands, but also to reduce the demand supply gap in JCB's South Asian and Middle Eastern markets through exports," Mr Sondhi said.
" We have earmarked about Rs 375 crores for the dual projects which were expected to commence their commercial production by the end of next year or early 2008," Mr Sondhi said adding that the entire fund would be generated internally as JCB was yet to go to public.
Describing the growth of infrastructural sector in Eastern India as very encouraging, Mr Sondhi said this had encouraged them to shift their business focus towards the Eastern and Northeastern region where the market was expectedly growing by about 20 to 25 per cent per annum for the past few years.
Claiming that JCB as a global entity with an annual turnover of 2.5 billion dollars had manufacturing facilities in eight countries around the globe including two in the USA, Mr Sondhi said at present they had a customer base in as many as 135 countries.
About their Indian operations so far, he said during the last fiscal they sold a total 7643 different types of earthmoving equipment with a sales turnover of Rs 1500 crores. " We are expecting about 25 per cent growth in sales during the current financial year," he said replying to another query.
Incidentally, JCB India is participating and displaying its wide range of products in the ongoing International Mining and Machinery Exhibition(IMME), being organised here under the banner of Confederation of Indian Industry(CII).
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