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JCB's new plant at Pune to serve as outsourcing hub

Our Bureau

Hyderabad , May 18

JCB India, part of the $2-billion JC Bamford Excavators Ltd, is bullish on the Indian construction equipment industry and is in the process of commissioning its second India plant at Pune with an investment outlay of $100 million (Rs 450 crore).

This new plant would serve as an outsourcing hub for its global requirements and manufacture various parts that go into construction-related equipment and excavators. Even as the Pune plant is underway, the company is investing about Rs 100 crore in its Delhi facility.

The Managing Director of JCB India, Mr Onkar Singh Sunar, said the new plant is being funded through internal accruals and has been positioned to serve as a sourcing facility for its global requirements.

"We are bullish on the construction industry in India. Given the tight schedules set by project promoters, it is not possible to handle all construction work with human support. Therefore, we see that construction-related equipment and excavators are increasingly being used in India and the market is projected to grow by over 50 per cent this year," he said.

Commissioning the company's 37th dealership in the country, Mr Sunar said, "About 50 per cent of new customer additions in the country was through existing clientele. This called for better service facilities. Therefore, we are investing significantly in strengthening existing dealers and expanding the footprint."

In 2004, the company sold about 2,500 units of equipment for various requirements and this year JCB hopes to cross the 7,000-mark driven by increasing usage of construction related equipment.

"The Asia Pacific region accounts for a significant chunk of the company market and this has prompted us to establish a centre in China," he said.

Apart from expanding operations, JCB is launching a range of equipment for excavation requirements. The southern market accounts for about 30 per cent of the total JCB sales in India and Andhra Pradesh has emerged as a key growth area. The commissioning of the MGB Motor & Auto Agencies in Hyderabad, will help expand the market and strengthen services, he said.

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