New Delhi: Construction equipment maker JCB India Ltd says sales are picking up as India’s infrastructure projects start getting off the ground.
“Have we seen an upturn? The answer is yes,” says Vipin Sondhi, chief executive of JCB India. Construction equipment firms do not release monthly sales numbers.
JCB India, a wholly owned subsidiary of UK-based JC Bamford Excavators Ltd, says it has a 50% share in the construction equipment market in the country.
JCB is emerging from the rough patch that the infrastructure sector hit after a spike in commodity prices followed by the economic slump. First, contractors who had bid for projects found themselves out of pocket and often had to renegotiate terms. Then, the credit crunch forced banks to stop extending loans, further stalling infrastructure projects.
The company expects 2009 revenue at Rs2,500 crore, down from Rs3,500 crore in 2007. In the same period, the number of tippers, backhoe loaders and excavators the company sold is likely to fall 34% from 17,150 in 2007 to 11,300 this year.