JBM Auto to invest Rs 200 cr in expansion

Auto component maker JBM Auto today said it was investing about Rs 200 crore this fiscal in expanding production capacity at various locations across the country.

A part of the diversified JBM Group, the company is putting the investments mainly at its Chennai, Pune and Sanand plants to meet requirements of customers, including Nissan, Mahindra & Mahindra and Tata Motors.

"For this fiscal, the investment is around Rs 200 crore, some of which is already going on. These are mainly at the new plants in Chennai, Sanand and also some other capacity expansion like in Pune," JBM Group Executive Director Nishant Arya said.

He said the company had already invested about Rs 35 crore out of a planned Rs 50 crore at the Chennai plant for supplying parts to Nissan.

The company is supplying parts for Nissan's compact car Micra and also for the upcoming sedan version of the car.

"The capacity will go to 1 lakh parts per day from 70,000 parts per day by the end of the fiscal," Arya said.

The capacity at the Pune plant is also being expanded to supply parts to Mahindra & Mahindra's upcoming light commercial vehicle, he added.

"Already investments are also going on for the plant at Sanand to supply parts to Tata's Nano," he said, but did not disclose details of investments and planned output from both these plants.

The company's other plants are located at Faridabad, Greater Noida and Nashik.

Arya said on the back of these expansion and increased orders from original equipment manufacturers for new products, the company is aiming for about Rs 1,000 crore turnover this fiscal. In 2010-11, the company's sales stood at Rs 825 crore.