JBM Group to In­vest 700 cr in Auto Parts Biz

The Economic Times - - Companies -

Delhi-based JBM Group plans to in­vest .` 700 crore in au­to­mo­bile com­po­nent busi­ness over the next two years as part of a plan to in­crease its an­nual rev­enues to .` 10,000 crore from .` 7,000 crore while si­mul­ta­ne­ously scout­ing for ac­qui­si­tion op­por­tu­ni­ties in Europe and Amer­ica. The com­pany has al­ready spent .` 200 crore equally on two new plants in Ban­ga­lore and In­dore that will get op­er­a­tional in the next three months.

The Ban­ga­lore plant is a just-in­time fa­cil­ity for Honda Mo­tor­cy­cles and will man­u­fac­ture sheet­metal com­po­nents while the In­dore plant will man­u­fac­ture chas­sis parts and ex­haust sys­tem for Volvo Eicher and MAN trucks. The com­pany has not dis­closed the de­tails of the rest .` 500 crore that it plans to in­vest.

“The in­vest­ment will be funded with a com­bi­na­tion of debt and funds from in­ter­nal ac­cru­als,” JBM Group’s ex­ec­u­tive di­rec­tor Nis­hant Arya told ET. The In­dore fa­cil­ity will be com­mis­sioned un­der the group-owned Neel Metal Prod­ucts while the Ban­ga­lore plant will come un­der JBM Auto.

The group also plans to ex­pand its range of buses by launch­ing sixme­tre and 18-me­tre buses over the next five years.

At present, it has only 12-me­tre buses on of­fer.

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