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JCB gets control of Indian plant
00:00 07 Jul 1999
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by Keren Sall
JCB is continuing to roll-over its worldwide production and sales expansion plans by taking a controlling stake in an Indian manufacturing venture.
Under the new arrangement, which has been approved by the Reserve Bank of India, JCB has 60 per cent of the JV and Escorts 40 per cent, rather than the other way. The deal will result in JCB pumping millions of pounds and transferring manufacturing technologies in the UK into the JV plant it set up 20 years ago.
Sir Anthony Bamford, JCB chairman and managing director, said the company planned to use the plant to get a foothold and expand sales into other parts of Asia, including China. "Last year we ended our JV with Sumitomo, so that we would be free to manufacture and sell tracked excavators anywhere in the world, and we have also invested £39 million to build a manufacturing plant in the USA in Savannah, Georgia."
Raja Nanda, chairman and managing director of Escorts said: "We have enjoyed an extremely successful and cordial relationship with JCB, and that will continue in the future. JCB is now in a position to bring further technology and investments to Escorts JCB and this will be of great benefit in expanding the business."
Escorts has 80 per cent of the backhoe market in India. It was instrumental in creating and expanding the demand for the machines. Sales now average 2,000 backhoe loaders a year. The company has some 30 dealerships in India, with 70 outlets throughout the country.
The JCB venture in India which employs 500 people will branch out into building products other than backhoe loaders which it has concentrated on until now. But the company was not forthcoming about exactly which products would be built at its Delhi manufacturing facility.
JCB made a pre-tax profit of £84.2million on a turnover of £786 million last year.
JCB is continuing to roll-over its worldwide production and sales expansion plans by taking a controlling stake in an Indian manufacturing venture.
Under the new arrangement, which has been approved by the Reserve Bank of India, JCB has 60 per cent of the JV and Escorts 40 per cent, rather than the other way. The deal will result in JCB pumping millions of pounds and transferring manufacturing technologies in the UK into the JV plant it set up 20 years ago.
Sir Anthony Bamford, JCB chairman and managing director, said the company planned to use the plant to get a foothold and expand sales into other parts of Asia, including China. "Last year we ended our JV with Sumitomo, so that we would be free to manufacture and sell tracked excavators anywhere in the world, and we have also invested £39 million to build a manufacturing plant in the USA in Savannah, Georgia."
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Raja Nanda, chairman and managing director of Escorts said: "We have enjoyed an extremely successful and cordial relationship with JCB, and that will continue in the future. JCB is now in a position to bring further technology and investments to Escorts JCB and this will be of great benefit in expanding the business."
Escorts has 80 per cent of the backhoe market in India. It was instrumental in creating and expanding the demand for the machines. Sales now average 2,000 backhoe loaders a year. The company has some 30 dealerships in India, with 70 outlets throughout the country.
The JCB venture in India which employs 500 people will branch out into building products other than backhoe loaders which it has concentrated on until now. But the company was not forthcoming about exactly which products would be built at its Delhi manufacturing facility.
JCB made a pre-tax profit of £84.2million on a turnover of £786 million last year.
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