JKIPL sets ambitious targets
JinKushal Industries Ltd (JKIPL) was incorporated in 2007. And, in 2009, the present promoters, led by Anil Kumar Jain, acquired control over the affairs of the company. Following this acquisition, JKIPL has leveraged the expertise gained from other business ventures of Jain, commencing commercial operations in mining contracting, machine rental, logistics-warehousing and leasing.
This phase enabled JKIPL to increase its industry network, gain a deeper understanding of market dynamics and establish an operational foundation. In 2017, drawing on its experience in the sector, the company strategically shifted focus to export trading of both new and used construction machines. This transformation was driven by forward integration in its business model, evolved from using and renting construction machines to exporting them globally. “Since then, it has been engaged in the sale of new customised construction machines and export of used/refurbished construction machines, catering to global markets,” explains Jain, promoter & CMD, JKIPL.
Holding a diploma in mechanical engineering from BRP Government Polytechnic, Dhamtari, Chhattisgarh, Jain had always been on the look-out for businesses to satiate his entrepreneurial vision and spirit. Today, JKIPL is the largest non-OEM construction machines exporter with a 6.9 per cent market share (source: CareEdge Report). JKIPL is recognised as a three-star export house by Directorate General of Foreign Trade (DGFT), government of India. It specialises in export trading of construction machines such as hydraulic excavators, motor graders, backhoe loaders, soil compactors, wheel loaders, bulldozers, cranes and asphalt pavers. The company’s operations extend beyond plain export trading, as it endeavours to leverage technical knowhow and systematic processes to refurbish, customise, modify and accessorise both used and new construction machines, either in-house or through third-party vendors, before export sales, to ensure optimised functionality, efficiency and performance and meet the customers’ specific requirements.
JKIPL has exported construction machines to over 30 countries, including the UAE, Mexico, the Netherlands, Belgium, South Africa, Australia, and the UK.
Market beckons
The used construction equipment market has shown consistent growth, with an estimated value of $132.4 billion in 2024. This growth is mainly fuelled by two factors: the rise in infrastructure development and construction activities in emerging economies and the cost-effectiveness of used equipment compared to new machinery. Looking forward, the market is expected to reach $177.2 billion by 2029, at a CAGR of 6 per cent during the forecast period. “This growth will be bolstered by the expansion of mining activities, urban infrastructure projects, government investments in construction and digital platforms that facilitate the resale and procurement of used equipment”, adds Jain. He is leveraging his 37 years of experience in the automotive-logistics and mining contracting and infrastructure sector to give shape to a unique business idea. “We aspire to become the world’s largest and most trusted one-stop destination for used and new construction and mining equipment, while developing and delivering customer-focussed, value-driven machinery under our own brand, HexL,” says Jain. “We aim to empower businesses across the globe with reliable equipment, innovative features and seamless procurement experiences”.
His son Abhinav Jain, promoter & whole-time director, JKIPL, has been associated with the company since 25 September 2017. With a Bachelor of Technology degree in mechanical engineering from VIT University, Vellore, he has gained over seven years of experience in the construction equipment export and market development sector and oversees export sales, global market expansion, logistics and supply chain management in JKIPL.
Sumeet Kumar Berlia, ED & CFO, JKIPL, is a chartered accountant, with a certificate of membership from the Institute of Chartered Accountants of India (ICAI). He has over eight years of experience in the field of finance, taxation and auditing and has worked with organisations, such as Ironmart.
In 2022, JKIPL’s revenue had crossed Rs100 crore, which further tripled by December 2024. “We have demonstrated consistent financial growth, achieving a CAGR of 56.7 per cent in revenue and a return on equity (RoE) of 42.18 per cent, reflecting our ability to efficiently leverage working capital, strategic investments, and operational efficiencies,” says Abhinav Jain.
Adds Berlia: “As part of our growth strategy, we transitioned from an advance payment model to dispatches against documents and deferred collection terms for regular and strategic customers. This strategic shift enabled higher profit margins and broader market penetration but also led to an increase in our receivable cycles. By utilising cost-effective financing from banks and internal accruals, we were able to offer structured credit to customers without materially elevating our credit risk profile.”
To expand its global operations, in 2023, JKIPL incorporated Hexco Global FZCO, an overseas subsidiary based in Jafza, in the UAE, in which it holds an 80 per cent stake. Hexco Global FZCO is engaged in the trading of construction machines had acquired a business in 2024 (which included part of its assets) -- Hexco Global USA LLC, a subsidiary -- in which it holds a 90 per cent membership interest, making it a step-down subsidiary of JKIPL. Through these subsidiaries, JKIPL strengthened its role in the construction machine trading segment with an expanded presence in international markets. Hexco Global FZCO supports JKIPL’s international operations by utilising the advantages of the UAE’s open trade policies, ease of doing business, regulatory framework, distribution network, geographical position, and global connectivity. In 2024, the company completed its strategic acquisition of a competing business in the UAE through its subsidiary to foster synergistic growth.
JKIPL operates an in-house refurbishment facility in Raipur, Chhattisgarh, India, spanning 30,000 sq ft. JKIPL has launched its own brand, HexL, for construction machines and has partnered with third-party manufacturers in China through a contract manufacturing arrangement. Under this model, its construction machines are manufactured according to their specifications and standards to meet market demand.
Growth strategies
JKIPL has built an efficient supply chain infrastructure that supports its core business in the export trading of construction machines. The company’s procurement network comprised 228 suppliers, including 172 contractors, 51 traders, and five manufacturers as of December 2024. This diverse supplier base enables them to source a wide range of new and used construction machines in line with their customers’ requirements and market demand. In addition to supplier relationships, it works with six non-exclusive third-party refurbishment centres located in Mumbai, Delhi, Hyderabad, Nagpur and Chennai in India, and one in the UAE.
As part of its strategy, JKIPL aims to strengthen and streamline the supply chain by expanding its network of vendors for procurement, refurbishment, customisation, and contract manufacturing. By increasing the number of suppliers and contractors, vendors, refurbishment and customisation partners, it plans to scale operations efficiently, while also maintaining quality control measures. Further diversification of its supplier base will help the company to mitigate risks associated with supply chain disruptions and improve inventory management, ensuring a consistent supply of construction machines to meet the evolving demands of customers across different markets.
JKIPL plans to create brand awareness through a structured marketing strategy focussed on increasing visibility, strengthening market presence, and expanding global reach. “To achieve this, we will invest in digital advertising, targeted marketing, etc, to improve brand recognition and customer engagement,” says Yashasvi J, marketing head, JKIPL. “Strengthening relationships with distributors and dealers through frequent and collaborative interactions will ensure that they receive the necessary support, training, and marketing resources to effectively represent our brand and ensure after-sales service of top quality to the end customers. Additionally, participation in international exhibitions more frequently will provide opportunities to showcase our products, engage with industry stakeholders, and explore new business partnerships. To further deepen market penetration, we will implement targeted marketing campaigns to expand our reach in international markets”.
JKIPL intends to place additional focus on its own brand and branded product lines, to enhance control over production quality, cost efficiency and overall supply chain management. Engaging with contract manufacturers will allow it to ensure that all construction machines are produced in accordance with its pre-defined specifications, technical requirements and industry regulations. This structured approach will help maintain consistency in product quality, comply with safety and operational standards and provide customised solutions tailored to specific customer and market needs.
On the product portfolio, JKIPL looks to expand its product portfolio beyond hydraulic excavators, backhoe loaders, wheel loaders, motor graders and bulldozers, to meet the evolving needs of the construction industry. As part of its growth strategy, the company aims to introduce electric construction machines in the future, aligning with industry trends and increasing demand for sustainable solutions.
By incorporating electric machines into its offerings, JKIPL seeks to cater to a wider range of customer requirements, while addressing environmental considerations and regulatory shifts and making the brand future-ready. This expansion will enable it to serve diverse industry segments, enhance operational efficiency and position itself as a forward-looking provider of construction machines in global markets.
JKIPL intends to continuously improve operational efficiencies by refining procurement, refurbishment processes and logistics. By streamlining these key functions, it aims to enhance workflow efficiency, reduce turnaround times and ensure seamless execution across its supply chain. To further optimise costs, while maintaining product quality, the company intends to further invest in technology and process automations. These investments will help enhance process accuracy, improve inventory management and enable better resource utilisation. By integrating advanced systems and automated solutions, JKIPL seeks to strengthen operational control, minimise inefficiencies and sustain long-term cost-effectiveness in its business operations.
Environmental responsibility
JKIPL plans to expand its product portfolio beyond hydraulic excavators, backhoe loaders, wheel loaders, motor graders, and bulldozers, to meet the evolving needs of the construction industry. It aims to introduce electric construction machines in the future, aligning with industry trends and increasing demand for sustainable solutions.
“By incorporating electric machines into our offerings, we seek to cater to a wider range of customer requirements, while addressing environmental considerations and regulatory shifts and make our brand future-ready,” sums up Jain. “This expansion will enable us to serve diverse industry segments, enhance operational efficiency and position ourselves as a forward-looking provider of construction machines in global markets. Through our refurbishment, we contribute to building a more sustainable industrial ecosystem, where resource efficiency, economic value and environmental responsibility go hand in hand.”