JBM Group to Invest 700 cr in Auto Parts Biz
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.