JCB is to turn its Indian operation into a manufacturing hub serving the Middle East and South Asia markets.
JCB, which recently invested Rs 300 crore ($65 million) in a new backhoe loader in the country, has already started shipping excavators to Indonesia and will soon be exporting its entire product line, according to the Times of India.
JCB India CEO Vipin Sondhi said in a press conference last week: “We see this as an opportunity to reduce freight costs, which is quite high in our industry. It will make us more competitive in markets like the Middle-East and South Asia.”
Sondhi, added that the operation could even exports fabrication parts back to its parent company in the UK.
“The opportunity does exist to export from India to several other countries, including to our parent company. But we are yet to finalise anything.”
Sondhi described 2010 as the best year since the downturn began in 2007 when demand for machinery dipped significantly: “Between 2007-08, our growth fell by almost 15%. Last year, growth was completely flat. This year, we are seeing demand once again.”
