The leading earthmoving and construction equipment manufacturer JCB India invested in expanding its manufacturing capacities to beat the slowdown, says MD and CEO Vipin Sondhi to Ashish Sinha.
The earth moving and construction equipment (ECE) industry is back on track. What is driving its growth?
This growth in the ECE industry is primarily driven by the roads and highways sector. This growth in the sector needs to be sustained, and a lot depends on the execution of the projects that are being announced. Also, sustainable revival led by only one sector is not adequate. In addition to roads and highways, other sectors also needed focus, which seems to be addressed by Budget 2017–2018, with irrigation and railways getting significant outlay.
What were the main reasons responsible for the downturn?
The ECE industry is dependent on projects, mainly infrastructure for growth. The overall economic slowdown and delay in infra projects led to low confidence amongst builders, developers, contractors and other stakeholders, resulting in delay in construction projects. These coupled with land clearance issues and acquisition delays, affected the overall demand for construction equipment.
How did the downturn affect JCB? Can you specify in terms of revenue, production and profit (or loss)?
We, at JCB, were adversely affected due to this down cycle. However, we invested in creating capacities and expanding our manufacturing base, products, and product support network. This was done to be able to cater to demand as it picked up, which it has by over 40 per cent in 2016.
This story is from the April 15, 2017 edition of Businessworld.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the April 15, 2017 edition of Businessworld.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
BUDGET 2024: We Need a System Thinking Approach to Rescript the India Story
While the nation is caught up in election fever, let us focus on the 2024 interim Union Budget presented by the Union Finance Minister, Nirmala Sitharaman. This could be a game-changing budget to rescript India’s growth story.
Is India's Pet Care Market the Next Investment Hotspot?
Top-tier investors like Cred founder Kunal Shah, Mamaearth's Co-founder Varun Alagh, and ShareChat's Co-founder Farid Ahsan are among those flocking to the pet care space
How New Niche Segments Are Emerging With the Help of the Tech Industry
Fuelled by the harmonious integration of technological advancements and entrepreneurial ingenuity, niche domains such as astro tech, climate tech, pet care tech, and legal tech are experiencing rapid growth within the startup arena
INDIA'S PET HEALTHCARE MARKET TO DOUBLE BY 2029
With only 30 per cent access to quality pet healthcare presently, MaxPetZ's CEO, Arun Vasudevan, believes there is ample room for expansion, positioning the sector for robust growth
BARKING UP THE RIGHT TREE: MARS PETCARE'S INVESTMENT & INNOVATION
In an exclusive conversation with BW Businessworld, SALIL MURTHY, Managing Director of Mars Petcare India, analyses the growth of India's pet care sector.
CARVING A NICHE IN THE PET CARE BOOM
With a remarkable turnout of over 20,000 attendees in its early stages, Pet Fed has swiftly become India's leading pet festival.
ZIGLY'S DRIVE FROM DISARRAY TO ORGANISED PET CARE
During a conversation with BW Business world, PANKAJ PODDAR, Group CEO of Zigly's parent company, Cosmo First, delves into the industry's increasing allure to international investors, shedding light on the startup's contribution to this trend
COLLABORATIVE GROWTH & PET CARE STARTUP BOOM
Supertails sees the uptick in startups as an indication of the pet care industry's growth and vitality. The founders welcome other startups as partners to raise standards, innovate, and meet evolving pet parent needs of a growing industry
FROM FURRY FRIENDS TO FLOURISHING BUSINESS
RASHI SANON NARANG, Founder, Heads Up For Tails traces India's pet care sector's evolution, spotlighting its market factors, tech integration and future prospects
LEADING THE PACK IN PET CARE INNOVATION
Setting a benchmark with a $60m investment from L Catterton, SHASHANK SINHA, CEO of Drools Pet Food, talks of the industry's appeal to investors, the benefits of the startup surge, and the brand's visible role in this thriving industry