On Indian infrastructure: The Indian infrastructure industry has been going through a tough phase for last couple of years as projects, even after getting all the necessary clearances, have not been implemented. Many projects have been stalled due to multiple reasons like delay in clearances – forest and environmental, policy paralysis etc.
However, the new Indian government has shown strong intent towards infrastructural development since the beginning and we are seeing notable reforms from the government. The recent announcement of rolling out infrastructure projects worth Rs. 2 lakh crore definitely sets a positive tone in the industry. Projects like Swachh Bharat and Clean Ganga present a huge opportunity for construction equipment manufacturers.
Moreover, the government is promoting domestic and foreign investment in a big way. Recent announcements of US companies planning to invest $42 billion in India over the next two-three years and China planning to invest $20 billion in India primarily in building the railway infrastructure will give a huge boost to the infrastructure industry.
Also, the latest report released by A.T. Kearney indicates that given the investments planned by our government, infrastructure spending is expected to grow from 7.2 per cent of GDP in 2012 to 9 per cent by 2017.
This is likely to spur the demand for ECE, and if the industry’s full potential is realised, the result could be a $16 billion to $21 billion industry by 2020.
Hence, the coming months for the construction equipment market look promising.
On Indian CE market: With the government’s ‘Make in India’ campaign, the Indian infrastructure sector will get a major boost in the coming years and so will the Indian construction equipment sector. India needs $250 billion investment in 20 years to put in place a basic urban infrastructure relating to transport, water supply, sanitation and solid waste management alone.
The need for infrastructure development in India is enormous; however, the government needs to kick-start the on ground movement. The primary agenda of the government should be to debottleneck stalled infrastructure projects on ground and increase investments in the sector.
Projects like the following will drive the demand for construction equipment:
* Building of 1,800-km highway along China border in Arunachal.
* Upcoming 100 smart urban hubs across the country for which 760 million GBP has been allocated.
* Upcoming airports in tier 1 & 2 cities.
* Development of industrial corridors, energy (thermal and hydropower plants) telecommunications, water and sanitation.
New product launches: Product improvement is a continuous process at JCB. We add innovation and hard work to our customers’ valued feedback, the result of which is the launch of industry changing products time and again. Our products are backed by world-class facilities, technology and people, therefore, are unmatched in quality and performance.
We recently introduced two new best-in-class product lines in the material handling segment – India designed Loadalls (Loadall 7m and Loadall 11m) and India designed Skid Steers (SSL 135 & SSL 155). Both the products will revolutionize the material handling process in India.
In the backhoe loader segment, JCB introduced the next generation of backhoe loaders. JCB in India offers the widest range of backhoe loaders. This range is developed to suit different user segments for different applications.
Apart from our flagship, we have three variants of backhoe loaders – High Productive JCB 3DX Xtra, Highly Versatile JCB 3DX Super and The Mighty JCB 4DX. To complement the range at lower end we have most fuel economic backhoe loader i.e. JCB 2DX.
Major markets outside India: India is becoming an export hub to Africa, Middle East, South East Asia and the Indian subcontinent and the process will only get more active with time. At JCB, all products are manufactured on the company philosophy of ‘One Global Quality.’ Products manufactured in India are of global quality and can be used in any part of the world.
We currently export finished machines to Africa, Middle East, Southeast Asia and the Indian subcontinent. We export component parts, engines and transmissions to our sister units in UK, Brazil and Germany.