There is an increasing pressure on CE OEMs to keep their prices competitive in the face of poor market conditions and intense competition. "Costs are managed at manufacturing level through efficient and lean supply chain practices. In addition to that, we have set up an excellent supplier base that meets world class levels of component manufacturing," Sondhi says
Some experts believe that there is still a substantial gap between the Indian CE market and the developed CE markets in terms of technology maturity, particularly with regard to system engineering and use of embedded electronics. Sondhi dismisses the thought saying that India's technology in the CE segment is at par to that offered in developed countries. "Products manufactured in India are absolutely world class in terms of technological innovation, safety, comfort, productivity. The difference exists in terms of features as different markets have different requirements depending on the terrain, weather conditions etc. however, products manufactured in India are now used globally. Talking specifically about JCB, all products are manufactured on the company philosophy of ‘One Global Quality'. Products manufactured in India are of global quality and can be used in any part of the world," says Sondhi.
According to CII, like the automotive industry, the construction equipment industry would soon position India as a global hub for manufacturing, design, R&D and components outsourcing. But Sondhi believes that it is already happening. He says: "India has already become a global hub for manufacturing, design, R&D and components. All the CE companies (domestic as well as foreign MNCs) have set up their manufacturing facilities in India and are investing heavily in establishing their design and R&D centers."
JCB India also functions as a global manufacturing hub and currently exports finished machines to Africa, Middle East, South East Asia as well as the Indian sub-continent. "Component parts, engines and transmissions are exported to our sister units in UK, Brazil and Germany," shares Sondhi. While it has dominated the domestic market, JCB has also seen exponential growth in exports in the past few years clocking 82 percent in 2013 over 2012 and slightly higher at 85 percent in 2012 over 2011.
