JCB plans to capture more market share in Nepal
Kathmandu, October 1:
“Nepal needs to extend its road network, so we believe that our machines will be needed more,” says Sandip Singh, executive vice-president of JCB India Ltd, who was in Nepal for launch of JS 140 excavator.
“We have been selling our machines in Nepal for the last four years,” he says adding that JCB is the market leader in India. “With peace and stability, there will be economic growth. Industries will flourish, the real estate market will grow and construction equipment will be more on demand. And that is where we come in,” Singh says.
Singh says excavator is a 14 tonne machine. “We believe that it is the best machine in the 12-14 tonne category. It has a 92 horsepower engine. Its fuel efficiency and productivity are better than that of its competitors’. It has a very user friendly cabin too,” Singh adds.
He informs that JCB’s main competitor in Nepal is Komatsu. “Komatsu has the advantage of being the first mover in Nepal,” he says adding that his company, in four years’ time has a market share of 85 per cent in the Backo Loader segment. “We are however a little behind in track loaders as our share in this segment is only 20 per cent,” says Singh.
He claims that JCB’s products are produced in India making it easy and cheap to transport to Nepal. “Our machines are also slightly cheaper than our competitors’. They are cheaper to maintain as well. Spare parts can be imported quickly as and when needed,” says Singh, “On top of this, our distributors, Morang Auto Works, is very customer focused.”
“We have sold 150 machines in Nepal so far. But we expect to sell 100 pieces this year,” Singh says adding that Nepal government has also allowed private contractors to import machines by opening LoC in dollars. “Previously it was not allowed. The import duty has also been lowered that might push our growth up,” he thinks.