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Bright Future Alls (45 Per Cent)

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Bright Future Alls (45 Per Cent) Manufacturing BUSINESS INDIA u THE MAGAZINE OF THE CORPORATE WORLD P HOTOS: country – prior to 1979 there were few such construction machines S in India. It wasn’t until 2003 that HO N it became a wholly-owned subsid- ALI iary and JCB India was formed (see S HIV India timeline). While JCB boasts of D 11,500 employees world-wide, India ASA accounts for more than 3,000. N I In 2012, JCB’s earnings on an EBIDTA basis were £365 million on sales of £2.7 billion. In a global mar- ket, which contracted by 10 per cent, JCB’s machine retail rose slightly to 69,250 (2011: 69,100). “Innovation is our lifeblood,” Joseph Bamford had stated, and today Lord Bamford echoes these words: “Technology doesn’t stop; innovation must go on.” While JCB is a full range 300 model-strong port- folio manufacturer – in 2012 alone it added 66 new products, and plans to surpass this number in 2013 – it Lord Bamford: is the world leader in the manu- ‘the future is all facturing of backhoe loaders (29 yellow’ per cent market share) and load- Bright future alls (45 per cent). Its portfolio includes backhoe loaders, load- JCB India opens its fourth plant at Jaipur all telescopic handlers, tracked and wheeled excavators, wheeled loading shovels, rough terrain forklifts, mini- t was warm, bright and sunny the backhoe loader (BHL). Launched excavators, skid steers loaders, etc. at the JCB World Headquarters in 1954, the backhoe loader’s Torque- All its engines are purpose designed Iin Rocester, Staffordshire, UK – Lock, recently won JCB its 26th and built, in-house. Its portfolio is quite like what the team says about Queen’s Award – for innovation. Fit- spread over machinery for construc- JCB, ‘The future is extremely bright, ted to the BHL , the TorqueLock sys- tion (70 per cent), agriculture (14 per it’s all yellow,’ harking to the logo tem eliminates torque convertor cent) and parts (12 per cent) with the of the company. JCB prides itself on slippage and significantly increases balance spread over defence, waste being a second-generation “family the on-road efficiency of the digger management and power generation. business with family values,” says by reducing fuel consumption and JCB is proud that it produces more Lord Bamford, who has been chair- exhaust emissions by up to 25 per machines per annum than even say man of JCB since 1975, when his cent. It also enables JCB backhoes to Jaguar produces cars. father retired. The privately held be driven at higher speeds up hill. BHL manufacturing in India company is not listed, either on the It was after being named chair- London Stock Exchange or the New man that Lord Bamford made two INDIA TIMELINE York Stock Exchange; nor does it decisions that were to alter the 1979 have plans to do so. course of JCB history. In 1978, Lord Backhoe loader manufacturing JCB was founded in 1945, in Uttox- Bamford was credited with opening in Ballabhgarh eter by the late Joseph Cyril Bamford, an axle factory in Wales to produce 2003 as an agricultural equipment manu- major components in-house. His sec- 100 per cent shareholding: facturer, making hydraulic tipping ond decision, and probably his most JCB India formed trailers. His motto, Jamais content inspired one, was to set up JCB’s first 2006 (never content), has been carried for- overseas operation – in India. Set up Inauguration of Pune 1 factory ward by his son, Lord Anthony Bam- in 1979, JCB India’s manufacturing 2007 ford and, till today, the company plant was originally a joint venture inauguration of Pune 2 factory strives to achieve more – always. with Escorts India. 2009 In 1953, Joseph Bamford invented, Though the venture was slow to doubles capacity of backhoe what is probably one of its most popu- take off, the company established loader factory in Ballabhgarh to lar pieces of construction machinery, a whole new market sector in the u 106 u NOVEMBER 25-DECEMBER 8, 2013 BUSINESS INDIA u THE MAGAZINE OF THE CORPORATE WORLD Manufacturing started in 1979 and is probably 2012 – the birthday of Joseph its highest selling equipment. Cyril Bamford. Business India has written The 700,000 sq ft facility about JCB’s journey several over 100 acres of land is a tes- times in the past. In 2009, JCB timony to the company’s belief India inaugurated its back- that India has “a fantastic inter- hoe excavator manufacturing nal market will great potential facility in Ballabgarh, doubling for infrastructure”. India has its capacity to 100 machines a huge need for better infra- per shift. “We control over 75 structure and while JCB admits per cent of the market in this to the recent “vacuum in the product,” Vipin Sondhi, MD economy” due to the appoint- & CEO, JCB India, had said at ment of a new finance min- the time. India’s importance ister, new RBI governor, and for JCB is redefined by its deci- the forthcoming elections, “It sion to open its fourth factory [the economy] looks to be get- in Jaipur, Rajasthan, which will ting stronger. Let’s hope the go on stream by April 2014. Its new powers don’t regress,” says previous three factories include Graeme McDonald, COO (and two in Pune and the original CEO designate). one in Ballabgarh. JCB India The products made in India has not only the most plants maintain the same global qual- in any one country, barring ity standard of anything com- the UK (11 plants), but its back- ing out of JCB’s UK factories; in hoe loader plant in Ballabgarh fact the company says that the is its biggest, with about 60,000 Blake and MacDonald: ‘India is an important market’ Indian factories boast “more BHL s produced per annum. modern equipment than even “India is a very important market in the UK”. India has the best distri- Eye on exports for JCB,” says Alan Blake, CEO (till 31 bution and dealership body and its The JCB plant in Delhi is the larg- December 2013, after which he will team is strong on training operators est backhoe loader manufacturing stay on as senior advisor and board to use their machines to their full plant in the world. The first of its member). JCB has invested heavily potential. Indian contractors use Pune factories (Pune 1) builds sub- in India over the years, more so dur- the backhoe loaders in all its avatars, components and fabrications for the ing the economic slowdown. “We for roads, irrigation, agriculture, Delhi factory and other JCB manu- believe the economy in India will sewagery, etc. facturing plants around the world. pull through,” and with India being India also has the most ideal con- Pune 2 builds a number of JCB heavy an important export hub for JCB, ditions to test the machines, thanks products for the rapidly growing “the opportunity to export more to its hot climate and rocky land- local market. This includes tracked from India” is what has spurred the scape. Not only are finished machines excavators, wheeled loaders and com- further $100 million (`500 crore) exported from India but also com- paction equipment. investment in 2012 to set up the new ponents that are used in manufac- “We want India to have the best facility in Jaipur, which was auspi- turing equipment across all of JCB’s of everything,” is a JCB mantra. ciously announced in 23 October plants. In 2010, India produced and sold its 100,000th machine. INDIA TIMELINE This year, JCB celebrated the pro- 100 machines per shift duction of its one millionth machine, a 22-tonne JS220 tracked excavator. 2010 This machine was produced in shim- 100,000th machine produced and sold in India mering silver to mark the milestone and is set to be auctioned off at an 2011 expected £90,000, which will be launch of JCB EcoMAX ‘Made in India’ machines donated to a charity. “We have long understood the importance of good 2012 branding. A JCB is and always will be JCB India’s fourth factory announced in Jaipur, Rajasthan a product of hard work,” concludes Lord Anthony Bamford. Indeed the 2013 future is yellow. launch of ‘All New 3DX ’ u One millionth machine: wrapped in silver backhoe loader SHONALI SHIVDASANI as a guest of JCB in the UK u 107 u NOVEMBER 25-DECEMBER 8, 2013.
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