JCB India eyes 10-15% sales growth on back of infra sector pick-up
November 24, 2009
Construction equipment manufacturer, JCB India, is eyeing a 10%-15% increase in its sales next year on the back of the global economic revival and a huge pipeline of big-ticket infrastructure projects in the offing.
"The economy is reviving... Sectors such as real estate and power are picking up. We expect a 10-15% jump in our sales in 2010," JCB India's associate vice president (marketing), Amit Gossain, told PTI.
The company has a sales target of over 12,000 machines by 31st December this year, Mr Gossain said, adding that this may go up by another 130-180 machines in the next calendar year.
"Sales are picking up as infrastructure projects start kicking off. We see a good sales growth coming in from upcoming mega-road and power projects," Mr Gossain said.
JCB India, a fully-owned subsidiary of the UK-based JC Bamford Excavators, manufactures products such as tracked excavators, wheel loaders, backhoe loaders, vibratory compactors, tele-handlers, skid steers and soil componators.
The company believes that demand for excavators would perk up as the infrastructure sector is already exhibiting an upturn.
The Planning Commission has estimated a planned investment of $500 billion in infrastructure in the 11th Five Year Plan (2007-2012). The investment in the roads sector during the 11th Five Year Plan is projected at $93.11 billion.
It is estimated that the construction equipment industry in India is expected to register a growth of $12 billion-$13 billion by 2015.
JCB has recently invested Rs300 crore into its backhoe loader factory at Ballabgarh in Haryana to ramp up existing production capacity from 50 to 100 machines a day. "The Ballabgarh plant will now facilitate the company's export ambitions," Mr Gossain said.
The company, which did not show a good performance in the last quarter due to the global downturn, is expecting to clock a healthy profit in the next quarter. However, Mr Gossain did not divulge the amount of profit the company expects to clock.
The company has three plants in India, one in Haryana and two in Pune. It has 48 dealers and over 320 outlets all over India. -Yogesh Sapkale[email protected]