JCB India, earth moving and construction equipment maker, said that the revenue and volumes of the company grew at 40% in 2016 compared to 2015. This is primarily due to the government higher spending on roads and highways. The Union government emphasized on infrastructure funding in the last two budgets and it's effect is trickling down to equipment manufacturing companies like JCB.
The company sold roughly 26,500 machines in 2016, a level it last attained in 2011 with 27,000 units. Vipin Sondhi, MD and CEO of JCB India, said "Our India revenues in 2016 grew almost 40% to about Rs 8,000 crore over 2015. Exports contributed to around 20%".
Vipin Sondhi said estimates indicate infrastructure growth to be at approximately 10-11% in the current quarter. He also said "This is a bit of a concern. Given the scope of the infrastructure sector in the country, it should have grown more".
JCB India is aligning its marketing efforts to project itself as a "road solutions" company to take advantage of the growth in the sector.