Chrys Capital-backed JMT Auto Limited is set to raise money from International Finance Corporation (IFC) for its proposed $20 million capex plan. The company will use the proceeding for its greenfield cold forge facility in Jamshedpur.
The auto component manufacturer has taken 3.1 acres of land on a lease basis for setting up the facility. The project cost is estimated to be around $20 million and IFC will be providing long-term financing, according to an IFC project document.
The project will include installation of a cold forging line, which will help reduce scrap rates, along with providing better mechanical properties to end products.
Upon completion, the plant is expected to help create direct employment opportunity for approximately 250 people.
JMT makes high precision gear box, engine and axle components for medium and heavy commercial vehicles. The company is a key supplier to Tata Motors’ Jamshedpur plant, BEML, Cummins India, Telcon, L&T Komatsu, Caterpillar India and Tafe among others. It also exports to Caterpillar USA, CNH, Cummins USA, Eaton and General Motors.
The BSE-listed company is controlled by Rajeev Singh Dugal and his associates who have a 51.05 per cent stake, while Chrys Capital owns 30.48 per cent and the balance is held by the public and other institutions.
It has four machining and heat treatment plants and a hot forging shop and a foundry in Jamshedpur with good-casting capacity of 7,600 tonnes per annum (tpa). In addition, it has two facilities in Dharwad, Karnataka, and Lucknow, Uttar Pradesh.
