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To meet the growing demand from truck makers, Jamna Auto, an auto component manufacturer, expects to set up facilities in Hosur and Chennai at an investment of Rs 80 crore.
Addressing a press conference, Mr Randeep Jauhar, CEO, Jamna Auto, said that the facility in Hosur will manufacture parabolic springs with a capacity of 36,000 tonnes, and the other greenfield plant in Pillapakkam, Chennai, will manufacture air suspension, bogey suspension and lift axles. These facilities will cater to Daimler India, Renault-Nissan, Leyland-Nissan and Ashok Leyland.
Parabolic springs, an upgrade of leaf springs, are widely used in buses and trucks for better comfort. Air suspension is used in vehicles for a smooth drive.
The commercial production in Pillapakkam is scheduled in July 2011 while the Hosur unit is expected to go on stream by the beginning of 2012. The company would fund the two projects from internal accruals.
Expand product range
The 50-year-old company, which started with manufacturing springs used in trucks, plans to expand its product range in suspension for which the company is in talks with various technology partners. Mr Jauhar, said, “We will not be able disclose information about the name of partners unless we sign an agreement.”
Jamna Auto's capacity would expand to 2.2 lakh tonnes with the two new plants. The company's current capacity is 1.8 lakh tonnes from five plants. It has technology tie-ups with NHK of Japan for leaf and parabolic springs, and with US-based Ridwell Corporation for air suspensions, bogey suspension and lift axles.
About 90 per cent of Jamna's revenue comes from original equipment manufacturers and the remaining from after market, Mr Jauhar said. After-market sales and exports are expected to grow to 30 per cent in the next three years.
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