Yoma Digs Deep to Invest in JCB Machines as it Awaits Big Growth in Infrastructure

Yoma JCB, Myan­mar’s official dis­tributer of British-made JCB tractors, will invest $5 million over the next few years to grow the brand amid the country’s infrastructure boom, ac­cording to the company’s CEO.

The firm last week launched 8 JCB models, including the Backhoe Loader and Excavator, for distribution through par­ent company Conveni­ence Property’s (CPCL) 14 dealerships and plans to expand to 20 dealerships next year, Melvyn Pun, CEO of Yoma JCB, told Myanmar Business Today.

“The actual capital out­lay to do this JCB busi­ness won’t be very big ini­tially… but over the next two, three years we would expect to spend around $5 million to improve our branch network as well as probably having a bigger flagship,” he said.

Myanmar is experienc­ing unprecedented levels of infrastructure building on the back of billions of dollars of foreign aid and a rapidly growing econ­omy which is driving a demand for construction machinery.

“If you look at this coun­try the most glaring thing is a lack of infrastructure: the roads, there’s not much of a railway network… the domestic airports need to be expanded, the ports need to be expanded… all of these are really heavy in­frastructure work.

“We may feel there’s a lot of activity now, but I think its a fraction of what we’ll see five years from now or 15 or 20 years from now, so this will be a very long-term business for us,” Pun said.

Launched in January this year, Yoma JCB is owned by Yoma Strategic Holdings subsidiary Con­venience Property Com­pany (CPCL), the official distributer of New Hol­land agricultural machin­ery Myanmar.

CPCL has seen 40 per­cent year-on-year growth in unit sales of New Hol­land machines over the last three years and sub­sequently Myanmar has become New Holland’s largest market in South­east Asia, Pun said.

“In my mind in three years time JCB’s business will be as large as our New Holland business is to­day… this will be a signifi­cant business for Yoma.”

 

Source: Myanmar Business Today

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