2023 Was Strongest Year For JCB India: Deepak Shetty, JCB India
JCB India is pivotal to India's construction equipment sector, driving innovation and efficiency
JCB India is pivotal to India's construction equipment sector, driving innovation and efficiency. Its advanced machinery plays a vital role in infrastructure development, powering projects nationwide and fuelling economic growth, Deepak Shetty, CEO & MD, JCB India tells BW. Excerpts
Can you share with us the growth trajectory of JCB India over the past three years? What key factors have contributed to this growth?
JCB India has experienced growth through the launch of new products, enhancing our dealer network and continuing to have a customer-centric approach. Our commitment to delivering high-quality products and prioritising customer satisfaction has been pivotal in driving this progress.
With exports to over 130 countries, JCB maintains a consistent One Global Quality standard, earning trust and recognition globally. Moreover, our Pune Design Centre, housing over 700 engineers, plays a crucial role in driving innovation across domestic and global projects. This continuous emphasis on technological advancement ensures that we stay at the forefront of delivering cutting-edge solutions to our customers.
JCB India has witnessed growth both in volume and value. What are the factors driving this growth and how have they evolved over the years?
The year 2023 was the strongest for JCB India ever since it started its operations in 1979. Several key factors have contributed to this trajectory and have evolved over the years. The Indian economy's robust recovery after Covid-19 played a crucial role in driving demand for construction equipment. As economic activities rebounded, there was a noticeable uptick in infrastructure projects, further fuelling our growth.
Even during the pandemic, our investments in innovation continued. We launched the industry's first dual-fuel CNG Backhoe Loader in 2020 and later introduced the PNG Genset and India's first Electric Mini Excavator at Excon 2021.
Looking ahead, we plan to capitalise on emerging opportunities and further accelerate our growth trajectory. This includes expanding our product portfolio and further strengthening our dealer network. JCB has the industry's largest dealer network with almost 700 outlets. Overall, we are hopeful of favourable market conditions, government support, quality excellence, innovation, and strategic planning.
The adoption of hydrogen power engines in construction equipment is gaining attention globally. How do you see the role of hydrogen power engines in the construction equipment business specifically in India, and what are JCB India's plans in this regard?
JCB is proud to have taken the lead in introducing this technology to construction equipment the world over. This has been made possible because of the vision of JCB Chairman Lord Bamford, who has been the driving force behind the development of machines that are powered by hydrogen.
The machine was unveiled by Hon'ble Minister of Road Transport and Highways Nitin Gadkari. JCB has pioneered the development of a hydrogen internal combustion engine (ICE) and made considerable headway by showcasing this machine which is Asia's first Backhoe Loader with a hydrogen ICE during EXCON 2023.
Developed in response to the urgent need to meet carbon emissions reduction targets, this industry-leading development is a key milestone on the path to decarbonising the construction sector in India.
The transition from diesel to hydrogen will be much faster than we think. The availability of hydrogen is set to rise in the future, and this will open up newer areas of development. JCB is the first construction equipment manufacturer to have unveiled working hydrogen combustion engines, and prototype machines powered by such engines. There is no doubt we are witnessing the beginning of an exciting zero-carbon future in India's earthmoving sector. Hydrogen combustion is the future.
What are the major challenges JCB India faces in the Indian market, and how is the company addressing these to maintain its growth momentum?
A significant challenge is the industry's heavy reliance on roads and highway sector development. To diversify, exploring growth opportunities in areas like airports, logistics, and urban and rural development is important. It was encouraging to note the focus on railways, logistics and transportation infrastructure received in the interim budget this year.
Another opportunity area is that of having uniformity in emission norms. While wheeled machines adhere to CEV IV emission norms, but tracked machines such as excavators do not have any emission standards. We are engaging with the government, through ICEMA, to extend these norms to tracked machines as well, ensuring environmental compliance across all equipment categories. This will also open up more markets for exports.
Global supply chain disruptions also pose challenges, affecting the availability of components and raw materials. We mitigate these risks by diversifying our supply chains, collaborating closely with reliable suppliers, and implementing agile inventory management practices to ensure continuity in production and delivery.
Is there any critical issue that needs immediate attention?
A critical issue before us is the lack of regulations for construction equipment operators, which can impact safety and efficiency. We have advocated for industry-wide standards, providing comprehensive training programmes for operators, and promoting awareness about safety protocols and best practices. By addressing these challenges through strategic partnerships, advocacy, and diversification efforts, we aim to maintain our growth momentum. At the moment there is no mandatory training or license to operate a construction equipment. Intervention in this area is required to make the work site safe and productive.
