JBM Group plans to invest Rs. 700 cr in auto parts business.

Delhi-based JBM Group plans to invest Rs. 700 crore in automobile component business over the next two years as part of a plan to increase its annual revenues to Rs. 10,000 crore from Rs. 7,000 crore while simultaneously scouting for acquisition opportunities in Europe and America. The company has already spent Rs. 200 crore equally on setting up two new plants in Bangalore and Indore respectively that will get operational in the next three months.

The Bangalore plant is a just-in-time 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 Rs. 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 Ltd. while the Bangalore plant will come under JBM Auto Ltd.

ET