JBM Auto to invest Rs 410cr to set up three greenfield units

JBM Auto to invest Rs 410cr to set up three greenfield units
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First Published: Wed, Aug 13 2008. 09 56 AM IST
Updated: Wed, Aug 13 2008. 05 10 PM IST
PTI
New Delhi: Auto component manufacturer JBM Auto is planning to invest about Rs 410 crore in setting up three greenfield plants over the next two years, as it eyes a revenue of Rs 800 crore by 2011.
As part of the expansion plan, JBM Auto has entered into joint ventures with Italian component maker Magneto, Hinduja Group flagship company Ashok Leyland and Renault-Nissan separately to set up new manufacturing facilities.
“We have some expansion plans. In the next two years, we will be investing about Rs 410 crore in setting up three manufacturing facilities in three different joint ventures for supplying various body parts to their products,” JBM Auto Chairman S K Arya told PTI.
The manufacturing units will come up at Chakan, Pantnagar and Chennai for supplies to Tata Motors and Fiat; Ashok Leyland and Renault- Nissan respectively.
The Chakan facility would be developed by the 50:50 joint venture with Magneto - JBM MA Automotive, and would supply skin and inner panels and structural parts to Fiat and Tata Motors.
“Initially we will start with two customers, Tata-Fiat and Tata. But in Chakan, many companies are already there and many are coming up. So we will have the opportunity to become the supplier of those companies in future, that we are aiming at,” Arya said.
In the first phase, the total cost of the project would be Rs 245 crore, which would be in equal proportions of debt and equity.
Arya said that Fiat would be buying the entire skin panel from the Chakan plant for their to be launched ‘Grande Punto´ and ‘Linea´.
“For Tata, it will be for the new Indica, which will be in petrol, diesel, electric or the hybrid version, that they are going to launch,” he added.
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First Published: Wed, Aug 13 2008. 09 56 AM IST