JCB intro and conclusion

[Chantelle Tan]

JCB - J.C.Bamford Excavators Limited

Introduction
UK based J.C.Bamford Excavators Limited, more commonly known as JCB,
is one of the world’s top 5 major construction and earth moving
equipment manufacturers where its expertise lies in the Backhoe Loader
category. JCB has been actively expanding and investing around the
world and hence, is highly involved in creating jobs and employment
internationally. Since its entry in 1979, it has been a key player in
the construction industry and thus leading to being the largest
construction equipment manufacturer in India. JCB decided to enter
India as it saw the great potential growth that the company would be
able to reap in the future in the South Asian country. The firm offers
a range of Backhoe Loaders, Loading Shovels, Tracket Excavators and
Skid Steer Loaders that are suitable to the tough geographical
conditions in India. Originally, JCB first entered India through joint-
venturing with a local engineering corporation, Escort. However, as of
2002, JCB had successfully turned the joint venture into a wholly
owned subsidy as the government regulations loosen along the years.

Conclusion
All in all, JCB chose to enter the Indian market via joint-venture
with Escorts after weighing out the various pros and cons that the
method would bring to the firm after comparing with other entry modes
available. However, if the Indian government regulations were much
slacker and less demanding for JCB to enter India on its own, the
corporation would not have executed joint-venturing at the initial
stage. As a matter of fact, JCB wanted to take everything on its own
hands instead of sharing the goodies with others. Hence, we can see
how JCB in India further made the transition from joint-venture to a
wholly owned subsidiary as the Indian government regulations relaxed
in the later stages.

References

http://www.thehindubusinessline.com/2010/09/30/stories/2010093052120700.htm
http://www.naukri.com/gpw/jcb/aboutus.htm
http://www.jcb.com/india/homepage.aspx
http://living.oneindia.in/automobiles/auto-news/2010/jcb-india-sales-020810.html