Growth Market India
Building the Future
The much needed infrastructure projects imply that India will be one giant construction site for many years to come. This is not only good news for manufacturers of construction machinery but has helped boost demand for driveline technology and axle systems made by ZF.
The Indian population now numbers some 1.21 billion people – 181 million more than just ten years ago. “Our country is growing and growing, and it has become one large construction site. This is good news for construction machinery producers like us”, says Rajesh Khatri, Head of JCB India in Pune. In the enormous factory building, workers are busy assembling Rajesh Khatri’s pride and joy: excavators, wheeled loaders, drum-compactor rollers and concrete mixers. “Demand is high,” beams Khatri.
Construction works in India now account for up to 50 percent of invested capital yearly. This equated to 7–8 percent of GDP or $1.53 trillion in 2010, and this financial commitment continues to rise at an impressive rate. JCB Pune’s Head is particularly pleased that the huge investments are so strongly focused on roads and highways, ports and airports and irrigation projects, as well as railways, telecommunications, energy supply and urban infrastructure. “Construction machinery, such as wheeled loaders, backhoe loaders and compactor rollers, is needed everywhere,” he says. For Khatri, oad works are the biggest priority: “Road systems are still the main driver f Indian productivity,” he says.
New assembly plant
ZF has been represented in India with joint ventures and license partnerships for over three decades. In 2007, ZF India Private Ltd. commenced operations in Pune. The focus of production is on axles and off-road driveline technology and commercial vehicle technology. Together with the Head of ZF India, Piyush Munot, Strebl is in charge of setting up new production lines for the off-road axles and transmission systems. The upswing in the construction machinery sector is also apparent in ZF’s performance on site: the assembly plant comprises of factory buildings with a surface area of 2,500 sq m (approx. 27,000 sq ft) plus a 1,500-sq-m (approx. 16,000 sq ft) warehouse and an integrated aftermarket service facility.
ZF has been producing axles for pilot client Telco Construction Equipment Co. Ltd., a leading Indian construction machinery producer, since January 2010. Transmissions assembly commenced at the same time, achieving mass production in January 2011. Wheeled loader axles for JCB are the third product to enter mass production. “From 2012 we should be able to produce approximately 5,000 transmissions systems and 7,000 axles each year,” Piyush Munot explains.
Together with its clients, ZF India will assume responsibility right from the project phase as system provider for planning, product development, quality control and logistics and, finally, mass production, Munot explains.
JCB’s Rajesh Khatri, whose wheeled loaders are fitted with axles and transmissions made by ZF, approves of this comprehensive service approach: “We work extremely closely with our strategic partners throughout the whole production cycle. ZF India is therefore a part of the entire development process at JCB.”