JBM to enter bus business in India by 2012-13

September 6th, 2011 - 7:45 pm ICT by IANS  

New Delhi, Sep 6 (IANS) Auto component major JBM Group Tuesday said that it will foray into the bus manufacturing business in the country by the next fiscal.

“By the end of this fiscal, we will be in an alliance with an international partner for the bus business in India,” Nishant Arya, executive director, JBM Group told reporters at the sidelines of an Automotive Component Manufacturers Association (ACMA) event here.

According to Arya, the alliance for manufacturing buses may be formed with a European firm. The financial details and other plans would only be decided after the alliance is formed, he said.

Arya said that the group would be investing about Rs.500 crore in its component business driven three companies — Neel Metals, JBM Auto Systems and Jay Bharat Maruti — its joint-venture (JV) with Maruti Suzuki.

“We will invest Rs.500 crore this fiscal to set-up three new plants in Chennai, Pant Nagar and Sanand and expand capacity at our Pune, Gurgaon and Faridabad plants,” Arya said.

The company’s expansion plan envisages raising its component manufacturing capacity of one million per day to 1.2 million per day.

The company also expects its turover to grow to Rs.6,500 crore this fiscal from Rs.4,500 crores ($1 billion) in 2010-11.

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