RIDING THE WHIRLWIND

MNCs ARE FILLING THE VOID IN THE SECTOR WITH CORE SCIENCE AND ENGINEERING, AND DEEP TECHNOLOGY.

- NEVIN JOHN

ONLY A FEW in India would have heard of Joseph Cyril Bamford, but everyone knows his acronym, JCB. It is synonymous with a large digger, bulldozer or earth mover in India. Bamford, who started manufacturing agricultural tipping trailers from Uttoxeter, Staffordshire of the U.K. in 1945, scaled up by manufacturing heavy construction machines. JCB’s entry into India in 1979 was another strategic move. With five factories across India, JCB manufactures 60 products in nine categories for the domestic market and, more importantly, exports to more than 125 countries.

The JCB facility at Ballabgarh, near Delhi, is the world’s largest factory for backhoe loaders—a tractor-like unit with a loader-style shovel on the front and a backhoe at the back—that are used for road maintenance. JCB Chief Executive Graeme Macdonald recently said that sales of backhoe loaders have been strong in India, besides North America.

As India’s economy progresses towards $5 trillion, with a strong demand outlook for branded, premium products, the role of MNCs only gets bigger. The economic scenario offers a business case for global giants, which invest in core science research, engineering and deep technology; Indian companies still lag in core R&D.

No wonder that the manufacturing unit of LG Electronics India in Uttar Pradesh’s Greater Noida has no time to pause its rolling production lines, which manufacture refrigerators, washing machines, air conditioners, microwave ovens, and water purifiers, among others. This facility of the South Korean consumer durables giant, which commenced commercial operations in 1997 and has expanded to 10 production lines, witnessed capacity utilisation rising to 86% in Q1FY25 compared to 66.7% in FY22. Meanwhile, capacity utilisation at LG’s manufacturing unit at MIDC Ranjangaon, Pune, increased to 69% from 54% in the same period.