News - JCB India benefits from highways spending, grows at 40% in 2016

Published on: Mar 23, 2017

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.

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