“Production at the new facility at Halol-II, Vadodara, will begin towards the end of 2020. It will house the most modern laser cutting, welding and machining technology and will be a fork-lift free operation. It will be capable of processing 85,000 tonnes of steel annually.”

You have recently taken charge as JCB India's MD & CEO after serving as the COO. What were your first reactions?
I am delighted and overwhelmed. JCB India is special to me as I have been a part of its journey 2006 onwards when we had only one factory. Today, we have five factories in Pune, Jaipur and Delhi-NCR. The one in Delhi-NCR is the world's largest for Backhoe Loaders. With a Sixth factory coming up in Vadodara, Gujarat, these factories are at par with the rest of the world. We operate on the philosophy of One-Global-Quality and are all bound by a great work ethic at JCB India.
JCB products are a way of life in India. Almost every infrastructure project in the country has a JCB machine working tirelessly, building a new India and also creating entrepreneurs. A lot has been achieved over the past four decades of our operations in India, but we also see a lot of expectations and opportunities ahead.

What do you think will be the key challenges for you and where do you see the opportunities to take the organisation ahead?
Compared to 2018 which was the best year ever for the industry, the year 2019 is witnessing some demand compression. The overall economic slowdown has been affecting the construction equipment sector as well.
Being an election year, some disruption was expected, however, what we have seen is a combination of a variety of factors, there has been a disruption to the cash cycle along with stress in the NBFC sector, which is adding to the slowdown for us. However, in spite of the current scenario, the long-term vision looks positive. With the Government committed to building infrastructure, importantly in the Rural Economy, there will be opportunities for growth in the future. Also, as markets mature, there will be newer applications and thus, newer products and technologies will make their way into the Indian market. Already, we are seeing a significant integration of digital technology in JCB machines through LiveLink, our advanced telematics technology.

What is your analysis of the Indian construction equipment industry?The construction equipment industry has been lately witnessing a slowdown. It is down by approximately 17 percent this year. However, Infrastructure is a key element in India's vision of becoming a Five Trillion USD economy by 2024 and thus, Roads & Highways must continue to be one of the key growth drivers for the Construction Equipment Industry.  The focus of the Government towards the rural economy will also be one of the major contributors in the foreseeable future. Urban rejuvenation, Railways and Water Conservation have the potential to become significant growth drivers for the Construction Equipment Industry. The ambitious Har Ghar Jal is a programme that is specifically aimed at improving the distribution of water across the country. Amidst the downside, it is re-assuring to see the Government taking notice and trying to improve the economic environment. The lowering of the Corporate Tax and working towards re-capitalisation of banks, supporting NBFCs are steps in the right direction. To keep pace with the demand, JCB India is re-calibrating its manufacturing and supply chain to adjust to this lower demand. In an uncertain environment, it means having a swift and nimble supply chain which can ramp up and down as per the market demand. 

The last few months haven't been good for your industry due to the slump in the infrastructure sector for various reasons. Do you see the scenario changing soon? What are your industry's key expectations from the government?
With large-scale projects, including projects of national importance, the infrastructure sector will ultimately gain momentum. Given the investments earmarked by the Government for the infrastructure development, especially in the Roads and Highways sector, we foresee a   growth potential in the sector. Going forward, with projects such as Sagarmala, Bharatmala, Jal Marg Vikas, Har Ghar Jal together with a strong focus on rural development, we are hopeful that this will have a positive impact in the near future. As rural further integrates, we are hopeful of seeing more activity in terms of building infrastructure in this sector. The Pradhan Mantri Gram Sadak Yojna has been one such program. With concerted efforts, the long-term prospects look positive and we are hopeful of seeing a strong growth trajectory in the Construction Equipment industry in the coming years.

What are the other key challenges being faced by your sector?  With input costs going up and skilled manpower becoming both scarce and expensive. How is JCB India addressing these issues?
We believe that finally it is people which build an organisation. Thus, it is imperative to build an environment of excellence where the team feels positively challenged and remains engaged.
There is a need for the industry to make its operations exciting by showcasing the latest trends that are making their way into our Industry. Therefore, IoT and Big Data for instance are now an integral part of JCB machines. As the ECE industry grows, there is a proportionate need for trained operators and mechanics. We, as a part of the industry, are working with the Government and industry bodies to solve the skill gap. This will not only help us with adequate skill manpower but will also facilitate employment. JCB is also creating employment and entrepreneurship amongst youth through 15 Operator Training Centres in India. We provide a one-month certified course on machine operations and maintenance, which includes both, classroom and practical training on how to operate JCB machines safely and productively. Our 16-week detailed induction program at the training school at the Jaipur facility for ITI and Diploma graduates is another step towards filling the skill gap. Comprehensive skills developed through programmes here have helped young men and women excel in their careers, especially women engineers, who are now making their careers in traditionally male dominated areas of manufacturing such as welding and assembly. Our Jaipur facility today has over 30 percent of the workforce on the shop floor as women. These women engineers are champions of change and are now role models for many others in their villages and towns. 

JCB India has maintained its market leadership in the construction equipment segment since 2006-07. What has been the key to this leadership and what will you be doing to further consolidate this position? 
In our four decades of being in India, the customer has always remained at the centre of our operations. Our strategies are directly driven by what the customer wants which are productivity, reliability and profitability. JCB is a leading technology brand which pioneers in innovation. It has become a modern, productive, and pioneering solution to India's Earthmoving and Construction needs. Today, our products are visible at almost every worksite in metros, towns, and villages, working tirelessly towards building a new India. But more so, we have tried to remain as close to our customers as possible. We have invested in created a vast dealer network which provides an unmatched after-sales service to customers through 700 outlets and over 60 dealers. Since these machines work in far flung areas, it is imperative that a well-connected product support is offered to customers to minimise the downtime and maximise productivity. JCB introduced LiveLink- an advanced telematics technology, as a key element of product support. LiveLink benefits customers in better fleet management through remote monitoring and management of the machines. It transmits information on machine's health including Service, Operations and Security of the machine. For real-time monitoring, we have a state-of-the-art LiveLink command centre at our Ballabgarh (Delhi-NCR) facility. Additionally, we have introduced a series of smart machines-the ‘Intelli' series, which is again for providing smart and seamless experience to our customers. These innovations developed keeping in mind the evolving customer demands have helped us remain close to our customers. We are also aligned towards the rising need for safety and operator comfort by the customers as these parameters are becoming critical in the overall buying decision. Thus, keeping up with the consumers' expectations and demands has been a top-most priority for us.
While JCB India has always been focused on innovation and technologically-backed solutions, in order to stay relevant and to consolidate our position in the market, we will continue to put a significant thrust in digital technologies and their integration into new products.

In March 2019, JCB India had announced plans to invest Rs. 650 crore in a new plant in Gujarat. What's the progress on that front?
The new factory located on a 44-acre site in Vadodara will be JCB's sixth unit in the country and will manufacture parts for global production lines.
Production at the new facility at Halol-II, Vadodara, will begin towards the end of 2020. It will house the most modern laser cutting, welding and machining technology and will be a fork-lift free operation. It will be capable of processing 85,000 tonnes of steel annually. This new factory will be manufacturing engineered components and sub-assemblies for JCB's many factories around the globe. It will add to the capacity at our existing plants in India. Vadodara presents us with the advantage of being located close to the Surat port and also to our key suppliers. 

Tell us about JCB India's overall manufacturing capabilities and capacities.
Over the years, we have launched innovative, India-centric products and have expanded by way of new factories, with customer focus and One Global Quality being at the core of our operations. Today, JCB India is an embodiment of the ‘Make in India' programme. Seamless integration with our UK colleagues also plays a vital part in getting the global best practises in India. With five state-of-the-art factories in in Delhi, Pune and Jaipur, we today manufacture over 60 different types of products in eight categories. We further announced an investment of Rs. 650 crore in a new factory in Vadodara, Gujarat earlier this year. The new factory - JCB's sixth in the country, will be on a 44-acre site and will manufacture parts for global production lines. All JCB factories have been designed and built around the JCB Group's global Manufacturing Philosophy. Lean manufacturing principles, automotive footprint and robotics are driving the manufacturing operations at JCB India.  Made in India products have been exported to over 100 countries.
We are committed to having an indigenised supply chain with over 380 suppliers who are aligned to JCB India's group objectives and have grown along with the company through various supplier development and cluster initiatives.
Our Design Centre in Pune is the largest outside of the UK and has over 400 engineers. It comprises of Centres of Expertise, Innovators and Design Experts who are developing indigenous products, technology and processes through Innovative solutions.
We today have over 8,500 people in our Indian operations and have a network of more than 60 dealers and 700 outlets spread throughout India who further employ another 6,000 people.

Last year, I visited the JCB Jaipur Facility. It was good to see JCB India practicing gender diversity by encouraging and appreciating the role of women in functions like welding, which is supposed to be a male dominated area. Tell us about JCB India's overall quest for gender diversity.
As an organization, JCB India believes in equality, whether gender or culture. This belief has allowed for a dynamic integration of people from different backgrounds, experiences, and cultures. We have made pioneering efforts in the integration of women engineers in our factories, especially in roles which have always been considered male-centric.
Today we are proud that over 30 percent of the workforce on the shop-floor at JCB Jaipur are women. They have broken barriers and are now role models in their villages and towns. They are building careers in the areas of manufacturing, such as welding and assembly. From operating machines to testing and certifying engines, they are challenging traditional male bastions.
The transition is also significantly impacting the mind-set back at their homes and villages, and we are delighted to be a key contributor in this transition. Families that were once apprehensive about sending their daughters to study and work are now champions of change in their communities.
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