UK firm JCB is investing further in its Indian operations

255 JCB intends to further invest in its manufacturing operations in India. The company plans to spend US$99 million (£62 million) on developing a new factory on a 20.83ha site in the city of Jaipur. The signing of the land purchase agreement in Rajasthan marks the beginning of a new expansion phase for JCB India, reinforcing its strong position in the Indian market. JCB has a long history of operations in India, having initially started manufacturing backhoe loaders in partnership with Escort in 1979 at Ballabgarh. JCB later bought out this business. The new factory in Rajasthan will be JCB’s fourth facility in India. It already has factories in in Ballabgarh, Haryana near New Delhi and two in Pune. The Ballabgarh plant is now the largest backhoe loader factory in the world according to JCB. The company manufactures components at the two plants in Pune, as well as tracked excavators, wheeled loading shovels and compaction equipment. JCB is using this extensive manufacturing footprint in India to export to Africa, the Middle East and South-East Asia.

India is JCB’s single most important market according to the firm’s chairman Sir Anthony Bamford. He said that the country’s long-term prospects for infrastructure growth are substantial, which is why the company strategy is to carry on investing in India to keep pace with future economic growth and strengthen its position as market leader for construction equipment. Bamford added, “Jaipur is a perfect location for the next phase of our expansion, especially with the opportunity to export more products.”

Rajasthan is the largest state in India and its strategic location, particularly in terms of transport and energy infrastructure, together with the pro-business approach of the state authorities means that it is fast becoming a destination of choice for companies looking to invest in India.