India JCB's Single Largest Market

largest and the fastest growing construction equipment manufacturer

largest and the fastest growing construction equipment manufacturer
"India is a significant and the biggest market for us. Thirty years ago we set up facility here, gradually enormous liberalization has taken place in the past few years and now India has become an exciting country to be in. In 2007, India overtook the UK as JCB’s single largest market with sales of over 17,000 machines, up from 10,800 in 2006," says Mr. Matthew Taylor, CEO Worldwide, JCB.

JCB India Limited, the largest and the fastest growing construction equipment manufacturer, is a part of JCB Bamford Excavator Limited, UK, world’s third largest manufacturer of earthmoving and construction equipment. The company that began as a ‘One Man Band’ today employs over 8,000 people and produces over 275 different models, which are sold in more than 150 countries through a network of over 1,300 dealers.

JCB uses the most advanced technology, components and the developed manufacturing processes in 17 factories located in various parts of the world to manufacture moneymaking equipment and their meticulous design, rigorous testing ensure that wherever these equipment are in the world, their customers will get the same world-class JCB qualitative products.

JCB UK started its operations in India in 1979 as a joint venture. In 2003, JC Bamford, UK acquired 100 percent shares of the joint venture. JCB has now become a household name in the country for its world class machines working at all infrastructural construction sites.

JCB India Ltd is a pioneer in the Indian earthmoving and construction equipment industry and making a record of excellent growth rates. It has ambitious development and expansion plans through launching revolutionary products and adherence to world class JCB corporate identity norms. Today, in India, JCB has a park of over 65,000 machines and out of every two construction equipments sold in India, one is a JCB.

JCB India has modern manufacturing facilities at Ballabgarh in Haryana and at Pune in Maharashtra. The manufacturing facilities at Pune consist of two plants:
  • Plant-I is a component manufacturing facility that is export-oriented and caters to the needs of JCB factories both in India and abroad.
  • Plant-II is a Heavy Line manufacturing facility that produces Excavators, Wheel Loading Shovels, and Vibratory Compactors.
largest and the fastest growing construction equipment manufacturer
Mr. Vipin Sondhi, Managing Director & CEO, JCB India Limited
"JCB is the largest construction equipment manufacturer in the country and has always been in the forefront to introduce new concepts in the industry, be it applications or new products. With new facilities in Pune and expansion in Ballabgarh facility, it is geared to establish itself as a truly multi-product company," says Mr. Sondhi in his recent interaction with SKK and S. A. Faridi.

Commenting on the present difficult scenario in the industry, he said that the present difficult time is both a challenge and an opportunity. As a matter of fact it is more of a well-timed opportunity for the industry to fine-tune its operational efficiencies and its market penetration in deep pockets, he benefit of which is expected to accrue as the situation eases. For us, these are normal follow-through measures, which over the period through our team work culture have stood in good stead for our past and present initiatives. New expansion plans, new product offerings with improved flexibility, faster customer response has helped us to achieve a strong position. To strengthen company's after sales services including augmenting spare parts supplies, the company has invested Rs 22 crore to set up a central warehouse as well as a training centre to train dealers and our personnel. These facilities would be operational during August this year. The company has been very proactive in discharging its corporate social responsibility (CSR); rendering technical support through deployment of its equipment during disastrous natural calamities besides initiating a number of community health and educational and village adoption programmes in and around its factories in Ballabgarh, Haryana and Pune. For more details, excerpts from an Interview are as under:

The past few months have witnessed milestone developments at JCB India’s end in terms of expansion, opening of new facilities and new product offerings as its first step to make JCB India a multi-product company. Apart from consolidating these gains, what would be the next stage to make it a truly multi-product company to scoop country’s growing infrastructure space?

Construction Industry in India has grown exponentially in the recent past. It would not be wrong to say that the industry is maturing in the process. JCB India on its part has been contributing to it by providing world class construction equipment. To cater to the growing needs of the industry, we have in the last decade expanded our range from a couple of models to 20 models and continue to do so. Since, the Indian conditions are unique, JCB is offering products specific to meet the rigors of Indian terrain and conditions. Specialized attachments such as the sweeper collector, submersible pump, hand held tool circuit, ditch cleaning bucket, etc. have been introduced to bring more mechanization and to tap newer segments. In addition to this, JCB in the last year has offered products which would in the long run be helpful in building India’s infrastructure like JCB Vibromax compaction equipment, Load all telehandlers, etc. All these steps will ensure that we continue to grow and meet the demands of the industry.

What new muscles the expansion of JCB Ballabgarh plant will add to JCB India’s marketing strength particularly in the premium products range?

The construction industry, although showing a moderation now, is poised to grow at a healthy rate in coming years. Investments in excess of Rs 200 thousand crore (source: Planning Commission Report) is expected over the next 5 years. This only means one thing and that is the Indian growth story will continue. With JCB’s expanded facility, we are gearing up to meet the demand for the construction equipment in the coming years. The expanded facility will also assist JCB India in catering to the requirement of neighbouring countries and make JCB in India hub of the Asia Pacific region.

Product customization is becoming the main driver in product development strategy in the industry. How JCB is dovetailing its technical and engineering prowess to develop new products synthesized with inputs from its customers through well established conduits of efficient sales force and dealership network? What are the focused areas of JCB India’s R&D supporting company’s product development programme?

One of the key principles of JCB success worldwide has been the emphasis laid on “Quality”. JCB India has maintained that principle. We have a robust product engineering department which constantly works towards improving the product quality based on the feedback of our customers.

A dedicated design centre is being set up at our Pune facility to strengthen the R&D department. This design center in addition to designing India specific products is also going to customize products from our global portfolio for Indian market.

At the present juncture, construction equipment industry is facing a number of wrenching challenges in manufacturing, marketing, manpower crunch, and policy matters all pointing out to less heady times ahead. How the rising input costs, wages cost, infrastructure deficits, and so on are expected to affect industry’s performance. Apart from initiating innovative managerial, engineering and financial measures to contain this impact, do you think that JCB India’s strong fundamentals and its command over the market would enable it to maintain its products range price competitive on a sustainable basis with cost of production going up?

The challenges for the industry were always there. In fact, every industry constantly works against the rising costs. Current scenario is more pronounced due to the global slowdown in the economy. JCB India on its part has been constantly undertaking value engineering projects. The objective is to bring down production costs while enhancing the efficiency of the machines. Cost of production is not the only factor but, cost of ownership is also taken into account. We are also opening Operator Training centers. They will not only bridge the gap between the demand and supply of trained operators but also assist in improving the productivity of the machines due to better operations.

What are various measures at hand to deal with manpower crunch including systems placed in the company to improve skill of existing manpower as well as customers’ skill? It is really a paradox that at users end, due to lack of training, equipment are not utilized as per their potential.

To ensure that our manpower continues to have the competitive edge, skill enhancement is carried out regularly through various means. JCB has one of the highest man days of training for the employees in the industry. Not only are the employees nominated to trainings as per their KRA but, they are also encouraged to attend courses which they want to know more about which in turn will improve their skills required for the job. In addition to this, the skill level of the employees is enhanced through regular on the job rotation. This enables the employees to have an understanding of the needs of the other departments as well.

Backed by strong domestic demand, China and India are emerging as major growth areas in manufacturing, supply and exports of construction equipment. Will that make China and India a formidable force in the global equipment market? How ‘Made in India’ brand tag can be strengthened as India is being perceived as a more attractive manufacturing and supply destination. How do you see the Indian market evolving and what changes can be seen in the next two-three years in the domestic market place in this scenario?

Yes, India and China have become global powerhouses in the construction equipment market. This has been possible largely due to the strong domestic growth in these countries. In addition to this, availability of skilled manpower is another major reason for these countries to become a manufacturing hub for the world. Thus, population which was at one time considered a weakness has turned into strength for them.

One of the best ways of enhancing the “Made in India” brand is by benchmarking our products and services against the best in the world. Not only should the final product be benchmarked but the processes should also be done. More emphasis has to be given to the compliance of the processes, mindset has to undergo a paradigm shift from the “chalta hai” attitude. This will ensure that the quality is maintained and is consistent with world standards. For example, we do not only look within our group and industry but also benchmark our product/services from other sectors. The fact that JCB in India is on its way to becoming the Asia Pacific hub for the JCB group underlines the same.

Since the investment in infrastructure over the next 5 years is projected to be over Rs 200 thousand crore, that narrates the growth story which is still going strong. As the market matures, we will see more mechanization and use of specialized attachments for specialized activities. For example, JCB has already taken the initiative by introducing new machines like the Loadall which promote palletisation, etc. and new attachments to make the machines more versatile.

JCB's CSR

JCB India has been in the forefront in discharging its social responsibility. It has been rendering services during disastrous natural calamities-Tsunami, earthquakes in Gujarat and J&K-through supply of its equipment and machinery for rescue and relief work. It joined global relief efforts in India and Pakistan by donating Euro 500,000 worth of machines to help rescue and clearing operations after the earthquake wreaked havoc in these regions. Apart from this, JCB has been proactive in providing rural community services in the area of health and education , it has recently adopted two villages in and around its factories in Haryana and Pune, catering to the basic living requirement like drinking water, sanitation, primary health centres, schools, and source of living.

Products Offering

JCB India offers a diverse range of unmatched Backhoe Loaders. Wheeled Loaders, Excavators, Skid Steer loaders, Tele handlers, and Compactors. Through its comprehensive products offering and services, JCB in India has undoubtedly attainted the status as a one stop solution for all construction equipment needs.

Backhoe Loaders

JCB’s advanced range of Backhoe loaders include the 3DX, 3DX Super and 4DX. These are the machines that promise versatility and high performance with their fuel-efficient engines and superb maneuverability. They epitomize strength and durability backed by powerful loader performance and state-of-theart operator cabins.

largest and the fastest growing construction equipment manufacturer

Tracked Excavator

JCB India’s finest Excavator range includes JS 80, JS 130, JS 200 and JS 210 LC, all of which are suited to diverse weight requirements. Backed by powerful engines ranging from 65HP to 138 HP, JCB excavators are suited to work on all terrains with powerful excavator ends and smooth swing systems to enhance the performance on dual advantage of low fuel consumption and high productivity.

largest and the fastest growing construction equipment manufacturer

Wheel Loader

The options available for wheeled loaders are 3DXL, 430 Z, 432 ZX, and 456 ZX. These compact power machines are backed by engines ranging from 76 HP to 205 HP, promising superior performance with state-of-the–art operator cabins and excellent loaders options. These loaders are designed to economize on fuel consumption and for higher productivity.

largest and the fastest growing construction equipment manufacturer

JCB Vibromax (VM115)

The first Vibratory Soil Compactor invented in Dusseldorf, Germany has come a long way since 1934. This machine became the first of a line of vibratory compaction rollers, plates and tampers known around the world as Vibromax. The name itself spells out its meaning ”Maximum Vibrations.” Vibromax is a combination of high performance and reliability with high operating economy and efficiency. Backed by best dealer network support in the country, Vibromax is set to create a benchmark and meet with success.

largest and the fastest growing construction equipment manufacturer

Robot Skid Steer Telehandler
There are 3 different Robotic Skid steer loaders, viz. 170/190/1110, all of which come with a wide range of attachments to suit specific customer needs. Easy to maintain and full service access at the ground level, they feature the best maneuverability options with high productivity and performance that spell convenience and reliability on wheel and on tracks.

largest and the fastest growing construction equipment manufacturer
JCB Telescopic Handlers for material handling are a symbol of power, performance, and style. This comprehensive range of machines is specially designed and tailored to operate with the high levels of productivity economically. It is a machine that features safety, reliability, operator’s comfort and durability, making it a masterpiece that has captured the trust of customers’ world over. Its versatile functions facilitate various material handling applications and has high fuel economy making it a suitable machine for the Indian market.

largest and the fastest growing construction equipment manufacturer

Versatile Solutions

With the largest range of equipment in the world, versatile solutions have been developed to ease ground work for industries as diverse as construction, agriculture, waste handling, landscaping, defence, timber and many other specialist areas with more in the pipeline. The dynamic features of the entire range of products-Backhoe loaders, Robot Skid Steers, Wheel loaders and Excavators have transformed landscapes and built colossal structures with amazing ease and convenience.

Attachments

Taper Ditching Bucket, Ditch Cleaning Bucket, Trencher, Earth drill, Jib crane, Sweeper Collector, and Vibrating Roller

Waste Management and Disaster Handling Agents

JCB, in keeping with its tradition, has taken an initiative towards addressing the issue of waste management in India with wide range of machine and attachments for waste handling. The powerful JCB 3DX/4DX/Skid steer Loader/ excavator come with a host of attachments to cater to the same.

Dealership and Customer Care

JCB is known globally for its excellent network of dealership and superlative customer care. To meet the needs of its customers, JCB has designed innovative strong and high performance products and solutions. The dealership in India has developed its dealership following certain design principles and practices to ensure that our logo, site, premises, vehicles, work wear and stationary reflect its association with JCB.

Product Support Services

JCB parts are known worldwide for performance, reliability and safety, Supply of genuine parts safeguard the residual values that can be expected in years to come. JCB dealers stock genuine parts, extensive range of JCB premium lubricants and JCB filters, all manufactured to the same exacting standards.

The products support and after-sales service, offered by JCB’s extensive dealer network ensure customers’ complete peace of mind.

The company implements its mission through comprehensive Network of 45 dealers and 285 outlets, which provide expert servicing for their world-class machines. Their Product Support makes a diligent and persistent effort to ensure that every JCB machine is in the best operational conditions at all times. With dedicated parts center in Ballabgarh and parts depots in Chennai, Pune, and Kolkata.
NBM&CW July 2008
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