November 22, 2008

JCB India sees revenues flat

Country’s biggest construction equipment manufacturer Joseph Cyril Bamford India sees flat revenues this calendar year due to a slackening of growth in realty and a spurt in input costs.

JCB over the last four years, the company's annual growth has been at an average of 30%. JCB India's topline increased from INR 2,100 crore in 2006 to INR 3,200 crore the next year.

Mr Vipin Sondhi MD & CEO of JCB India said that but the firm doesn't see its revenue growing this year. He said that "This is because of a combination of a slowdown in the real estate sector and a rise in costs of oil, steel and even in interest rates.” He added that despite the hike, steel is cheaper in India when compared with the global market.

Mr Sondhi said that "JCB will now source 70% more from India than it did earlier.”

Mr Sondhi said that India is one of the most important markets for JCB as it contributed 24% to its global revenues in 2007. In addition to exporting components, JCB India exports finished equipment. He added that "Last year, we exported 205 tracked excavators manufactured at our Pune plant to dealers in Southeast Asia.”