BL reported that JCB the earth moving and construction equipment company has started manufacturing engines at its Indian plant, which has been built at a cost of INR 135 crore.

JCB India a subsidiary of JC Bamford Excavators, UK, had posted revenues of INR 4,950 crore in 2010-11, up 45% compared to the previous financial year. However this financial year, revenue growth this year is likely to slow down to 15% in the 2011-12.

Mr Vipin Sondhi MD and CEO in a press statement said that “The rate of growth. We expect to slow down. I would estimate 15% plus growth in the current fiscal.”

Mr Sondhi said currently, the 16 valve, ecoMAX engine is being manufactured at Ballabgarh plant. This is the first time that JCB is manufacturing engines outside the UK.

He added that “We are making this fresh investments at a time that infrastructure has become a key theme for all the political parties and there are visible signs that the ‘government is getting back to clearing large projects' which is positive for us.”

JCB, which has more than a 50% share of the construction equipment market in India, sold 21,000 machines in the country in the 2010 calendar year.

The earth moving giant has three manufacturing plants in India, exports machines to neighboring countries and Indonesia and Africa as well, with these shipments accounting for INR 300 crore to INR 400 crore of its total revenues.

(Sourced from BL)