New Delhi, April 3 Construction equipment major, JC Bamford Excavators Ltd (JCB) has said that it does not foresee complete utilisation of capacity at its plant in north India for a year or two.
The company on Friday inaugurated its largest construction equipment plant near Faridabad. This will double its capacity to 100 units (backhoe loader) per day at an investment of Rs 300 crore.
The company said that despite the economic conditions, the capacity expansion at its Faridabad plant is in view of the domestic market and its potential as an export base.
“India is the market where we sell more equipment than anywhere in the world. I don’t think we will utilise the full capacity. While the housing market will take time to recover, we are optimistic on infrastructure projects,” said Mr Matthew Tailor, JCB Chief Executive Officer.
The company’s Indian subsidiary that has been impacted by the slowdown has been operating at half the capacity over the last few months.
Of the 57,000 units of heavy construction equipment that the UK-headquartered company produced world wide, the Indian arm sold 13,500 units. Last year JCB India exported 350 units. JCB India is now looking to add newer segments to its portfolio to expand the business.
“We are looking to grow our business in mining, solid waste management and defence applications,” said Mr Tailor.
JCB India has three manufacturing plants. The company exports components to its UK facility and completely built machinery to South East Asia, Middle East and Africa.
Source : Business Line