It is time to seize this opportunity to invest, innovate, create, scale-up and export.

Local manufacturing is critical and would require business-friendly policies and reforms.

- Jasmeet Singh, Associate VP, Corporate Communications and Corporate Relations,  JCB India Ltd

What new measures have you implemented to optimize operations amidthe pandemic?

As we get into a gradual and cautious un-locking of the economy, the re-booting of the supply chain is also important so that the supplier and the dealer network become seamlessly operational once again. The industry will be extremely challenged if multiple cities where our suppliers, dealers and customers are located go into a lockdown once again. Our supply chain is spread across India and any disruption in one part of the country has the propensity to affect operations and can have a cascading effect on manufacturing volumes.

At JCB India, we are striving to ensure the health and safety of employees at our manufacturing facilities across India. We are working with minimal people in offices and facilities, to reduce the risk to the extent possible. We are ensuring that all activities at our factories and offices are as per well laid out SOPs while also observing the company's highest standards of safety and hygiene for our employees.

We have been utilising our internal digital platforms to communicate and collaborate with colleagues on a wide range of subjects, including virtual wellness programs, helping maintain a work-life balance and their physical and emotional well-being.

How do you look at the opportunity of local manufacturing of the components that you currently import?

The government's 'Make in India' programme has been focused on making India a hub for manufacturing and an exporter to the world. Today, it has dovetailed into India adopting 'Vocal for Local' and following the ambition for becoming 'Atmanirbhar' (self-reliant). JCB India being an embodiment of the Government's 'Make in India' programme, has always remained committed to India's growth story by contributing to the building of world-class infrastructure in the country.

With five state-of-the-art factories operating on the principle of 'One Global Quality', and sixth one underway, JCB India indigenously designs and manufactures a wide range of technologically-advanced equipment for India and over 110 global markets. The design centre at Pune works towards developing and innovating products not only for the domestic but also for global markets.

We believe that today is a significant opportunity for India to become a part of the global supply chain. For this, local manufacturing is critical and would require business-friendly policies and reforms at the state level as well. The government too has demonstrated a clear intent towards supporting manufacturing across various segments. Hence, it is now time to seize this opportunity to invest, innovate, create, scale-up and export.

What are the challenges that you foresee for the industry due to Covid-19?

With the rising number of Covid related cases, there is always the possibility of localised lockdowns in areas where the number of cases is too many. Thus, the uncertainty and the unpredictability of business increases manifold. This can adversely affect the supply chains and our dealerships as well thus raising the risk on the business.

Construction activity and the focus on infrastructure have to continue for the industry to revive fully. We feel that rural infrastructure and healthcare are two areas which can be the lead drivers in the times to come. Liquidity related challenges also need to be addressed to ensure that projects are back on track, thus leading to improved business for the construction equipment Industry.

Is the demand set to witness further contraction or scaling up?

The Covid-19 pandemic has adversely affected most industries including ours. Growth in the construction equipment sector is directly dependent on infrastructure development. And, as almost all infrastructure projects had come to a standstill in the months of April and May, the construction equipment industry was severely stressed. This was an extremely challenging period for the entire industry, as nobody could have planned for a down cycle as severe as what we witnessed. For JCB India as well, it has been an unprecedented experience in our 40-year journey in India.

However, with the gradual opening of the markets and the government's concerted efforts towards reviving the economy, we are seeing some green shoots. They are a combination of pent up demand getting released and also the slow and cautious revival of industry sentiment.

JCB India factories too are operational but with extremely stringent social distancing norms. Likewise, our parts warehouses and our regional offices have also re-opened. This re-boot, however, is extremely calibrated and cautious amidst the threat of a rising number of the Covid 19 cases.

What are the segments that can scale up the infrastructure investment and trigger fresh equipment buying?

Two key sectors are expected to drive demand shortly are infrastructure development in rural India and the healthcare segment. The movement of migrant workers will give an opportunity to have a better rural-urban re-balance. Rural India has the potential to become a key growth enabler in the days to come. Thus, schools, colleges, hospitals, dispensaries etc, all need to be scaled up and segments like municipal waste, village roads, rural infra, village infra are set to grow.

At a national level, projects like Bharatmala and Sagarmala should be given full impetus to strengthen the logistics network and develop requisite infrastructure. They are aimed at enhancing capacity at ports, improving operational efficiency and connectivity to enable a smoother flow of traffic.

Also, for a large and diverse country like ours, the need for robust healthcare infrastructure is imminent. There has to be a much higher allocation of expenditure on health and its sustainable development. Currently, it is approximately 1.3 % of GDP but in the long run, it should at least be 5%.

What support is being received from the Government?

Construction of roads and highways has always been an area of utmost priority for the government of India. After a massive slowdown, the industry witnessing some green shoots.

With the 'Unlock' in India and opening up of the business, we are hopeful of a brighter future for the construction equipment industry. The government has already announced a slew of measures to stabilise the impact on the economy and especially, the construction and manufacturing industry. It would also give further growth push to the allied industries like mining, steel, cement, etc. Hence, it has become all the more important now, to reboot and resume the activities in the road sector as quickly as possible.

Taking the road to economic recovery, the recent stimulus announced by the Government has started with some steps in the right direction like - focus on building infrastructure, reforms in coal and the mining sector and support to MSMEs, etc. A slew of measures such allocation of INR 3 lakh crore for collateral-free automatic loans, and equity infusion through MSME Fund of Funds, are aimed at reducing the stress on medium and small enterprises and support its growth potential and viability.

In his recent address, our Hon'ble Finance Minister also reiterated that the National Infrastructure Pipeline would be given a big push to create demand with a multiplier effect, and large projects would be frontloaded. This has certainly brought in positive sentiments. To revive the economy and related activities, the government is also drawing plans to ensure the steady flow of investment of Rs. 111 lakh crore into the National Infrastructure Pipeline.

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