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Priyanka Vyas

New Delhi, Nov. 25 JBM Auto, part of the Rs 2,500-crore diversified JBM group, is deferring plans to invest Rs 150 crore to Rs 200 crore for setting up two customised steel products centres to serve the needs of automobile companies.

The company — which already has two such centres in Gurgaon and Pantnagar to meet the requirements of companies such as Maruti Suzuki, Hero Honda, AMW, Mahindra-Renault and various suppliers — was earlier evaluating options to create additional capacity in the two automobile hubs in Maharashtra and Tamil Nadu.

“We have two steel service centres from where we cut steel in different shapes and sizes as per the requirement of our customers. However, considering the market scenario, we are postponing our plans to set up two additional plants by at least a quarter,” said Mr Nishant Arya, Executive Director, JBM Auto.

The demand for such centres would be fuelled from plants of Volkswagen group companies and Tata-Fiat located in the western part of the country and with the presence of Hyundai, Ford, Toyota, Ashok Leyland in the southern belt.

“Currently, shaping of steel blanks contributes to about 10 per cent of our revenues at Rs 250-300 crore. But as companies begin to outsource more, we would like to double our revenues from the business over the next three years,” said Mr Arya.

JBM is investing Rs 250 crore to cater to Tata Motors and Tata-Fiat plants near Pune, Rs 75 crore in Chennai for Nissan’s new facility and Rs 50 crore in Pantnagar for commercial vehicles maker Ashok Leyland.

“All other investments are on track,” added Mr Arya.

JBM Auto recently forged a joint venture with a Thailand-based Ogihara to serve Toyota’s domestic needs. It is now scouting for a partner to venture into a new business for buildings buses.

With 28 manufacturing locations and businesses ranging from components, building of tippers and trailors and other products, it is aiming to grow its turnover to Rs 4,000 crore over the next three years.

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