The Hindu Business Line : Jay Bharat plans facility for Maruti's new model

HAVING successfully completed the supply of fuel neck and real axle for Maruti Udyog Ltd (MUL) vehicles during last fiscal, Jay Bharat Maruti Ltd (JBML), the Rs 422-crore manufacturer of components for automotive applications, is now working on another expansion programme.

The company is also planning to set up a coating facility and additional welding lines. Further, it has also decided to expand its existing capacity to meet the increased demand of MUL.

"At present, the company is working on a major expansion plan for new model of Maruti YN4 and will be setting up facilities for manufacturing of the rear axle in technical collaboration with Yorozu Corporation, Japan," a JBML official told Business Line.

However, declining to divulge the details on investments involved in the expansion project and the implementation schedule, he said, "the details for the finalisation of technical collaboration and expansion project are still being worked out in constant consultations with Maruti Udyog. We will announce them as and when they were finalised."

The official said that Maruti Udyog has recorded first ever sales of 4,72,122 vehicles in its 20 years of operations with 30 per cent growth over the previous year. "Our performance is mainly attributable to performance of MUL, our main customer. During last fiscal, we have recorded an increase of 35.39 per cent in sales over the previous year."

Stating that the company has already started commercial supplies of fuel neck to MUL during last fiscal, the JBML official said the test trials have been conducted for rear axle and the commercial supplies would start during the first half of current fiscal.

Expressing concern over the unprecedented hike in steel prices, the official said the steel prices during last fiscal increased by almost 40 per cent. According to him, reduction in import duty on components, strengthening of rupee against dollar, thus making import cheaper, and signing of free trade agreement with other countries would further add to the concerns.

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