Deepak Shetty expects the industry to grow by around 18% during the current fiscal year even though there was a decline of 8% during previous year.
18 Oct 2023 | 16840 Views | By Shahkar Abidi and Chandan B Mallik
JCB India, a leading manufacturer of earthmoving and construction equipment expects its business to double over the next five years on the back of current infrastructure projects announced by the government.
In an interaction with Autocar Professional, on the sidelines of the showcase of JCB's range of excavators ...
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JCB India, a leading manufacturer of earthmoving and construction equipment expects its business to double over the next five years on the back of current infrastructure projects announced by the government.
In an interaction with Autocar Professional, on the sidelines of the showcase of JCB's range of excavators at Pune on Wednesday, Deepak Shetty, CEO and MD of JCB India said, "Based on the government's planned investments, we see an opportunity for JCB's India business to easily double in the next five years". He expects the industry to grow by around 18% during the current fiscal year even though there was a decline of 8% during previous year.
While Shetty did not spell out the current financial details of the company, data sourced from Tofler, a business analytics firm revealed that JCB India registered a net profit of Rs 1141 crore for the year ending March 2022. The company's revenues were reported to be Rs 11,904 crore during the same period. It sold over 40,000 units of machines during the reported period of FY22.
Shetty's comments come just days after Sany India & South Asia's COO Sanjay Saxena told Autocar Professional that new tenders worth over Rs 2 lakh crore are in the process of being finalised or nearing completion for a range of road projects and highways in the next few months.
Industry experts point out that the demand for construction equipment is expected to be very robust in the next five to seven years, due to the expected growth in capex (capital expenditure) of around 11–12% over the last few years until 2026–2027.
Talking about the industry's demand for Production Linked Incentive Scheme (PLI), Shetty added that the scheme will 'push companies even from other countries to invest in India', making the supply chain more robust. It would
would enhance India's ability to compete globally by making components manufacturing more valuable.