JBM to invest Rs. 1,600 crore on solar power vertical.

JBM group's ambitious 1,600 crore foray into solar power will be funded by a mixture of equity and debt.

The solar diversification, to be called JBM Solar, will conduct ground-mounted and roof top power projects. This is the second big diversification by the auto component manufacturer after its bus making facility.

'Our 1,600 crore investment in the solar business will comprise 25% equity and 75% debt,' said Nishant Arya, executive director, JBM Group. 'The equity element will, initially at least, come from internal accruals.' The 1,600 crore investment is intended to cover 3 years and generation of 300 MW. Positioned as an independent power producer, the company is also looking at diversifying into wind energy and biomass in future. The solar business is expected to contribute 15% of total revenue at group level to JBM. Solar apart, the company is also lining up a capex of around 200 crore for capacity expansion for group company JBM Auto.


TIMES OF INDIA