JCB India eyes 20% growth in sales revenue in 2016

Earthmoving and construction equipment (ECE) maker JCB India is eyeing at a sales revenue growth of 20 percent during the current calendar year, a top company official said on June 29.

To a question on the Brexit, he said it would not have any major impact on JCB India's business.

"The ECE industry is now having a very good growth of 40 percent. We expect our sales revenue to grow at 20 percent in calendar year 2016", MD and CEO of JCB India, Vipin Sondhi said.

Since April 2012, the industry had been witnessing a degrowth. "During October to December 2015, the growth was flat. Growth had started to pick up from January 2016", he told reporters.

In 2015, the company's turnover was Rs 5,000 crore, he said.

The ECE industry's growth has been driven primarily by roads and highways, he said, adding in some states digging of village ponds and canals had also contributed to some extent.

Sondhi said that growth in the eastern region's West Bengal was around 40 percent.

"Such high levels of growth is not a steady state. It should stabilise at a lower level at some point of time", he said.

From its Pune components manufacturing plant, JCB India was exporting 60 percent of the produce to its mother plant in UK.

JCB India was exporting its equipment to the countries of South East Asia, Middle East and Africa, he said.

"Exports of machines was 20 percent of overall revenue of the company", he said.