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| Jamna Auto to invest Rs 80 cr in two auto units |
| BS Reporter / Chennai Mar 08, 2011, 00:51 IST |
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Auto component maker Jamna Auto would set up two new manufacturing units in Tamil Nadu, with an investment of around Rs 80 crore. The new units, at Hosur and Chennai, will produce parts for commercial vehicles.
The Hosur facility would manufacture parabolic springs and the plant is expected to go on-stream in December 2011 while the Chennai facility, which will manufacture air suspension, bogie suspension and lift axles, is expected to commence production from July 2011.
The capacity expansion for parabolic springs is to cater to demand from major commercial vehicle manufacturers such as Daimler India, Renault-Nissan, Leyland-Nissan and Ashok Leyland, who have set up facilities in the state.
Tata Motors' requirement of parabolic springs is being met from the company's Malanpur plant in Madhya Pradesh.
Jamna Auto CEO Randeep Jauhar told reporters that the region has been key for these auto makers. It will not only enable us to gain proximity to our customers but would also enable us to provide cost-efficient quality products, he added.
The air suspensions to be produced at the Chennai plant will be made in technical collaboration with US-based Ridewell Corporation and is aimed at meeting the increasing demands from low-floor buses.
The company has already acquired land near Chennai and prototypes developed are undergoing rigorous trial, he said.
Jamna Auto reported consolidated sales turnover of Rs 661 crore and profit after tax of Rs 11 crore in 2009-10. In the first nine months of the current financial year 2010-11, the company reported a turnover of Rs 696 crore and profit after tax of Rs 25 crore.
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