Jamna Auto to invest Rs. 120 crores in Chennai, Hosur plants

Jamna Auto Industries Ltd. has announced plans to invest Rs. 120 crores in its two new manufacturing units, one each in Chennai and Hosur.

The greenfield plant in Chennai will manufacture air suspension, bogie suspension and lift axles. The air suspension will be made in technical collaboration with Ridewell Corporation of the US. The project will entail an outlay of Rs. 20 crores. The company has already acquired land near Chennai, and the prototypes developed are undergoing rigorous trial. Air suspensions are being increasingly used in low-floor buses. Commercial production is expected to commence from July onwards.

Jamna Auto is India’s largest and among the world’s third largest commercial vehicle spring manufacturers. The company produces leaf and parabolic springs for M&HCVs;, with an installed capacity of 150,000 mtpa. The manufacturing facilities are located at Yamuna Nagar (Haryana), Chennai, Malanpur (Madhya Pradesh) and Jamshedpur. Its wholly-owned subsidiary, Jai Suspension Systems LLP, has its plant at Pantnagar (Uttarakhand).

The Hosur facility will produce parabolic springs and entail a total capex of Rs. 100 crores in 18-24 months. The plant, expected to go on stream in December next, will have a capacity of 3,000 MT.

Jamna Auto has gone for major capacity expansion for parabolic springs to meet the demand of Bharat Benz, Renault Nissan, Leyland Nissan and Ashok Leyland. Tata Motors’ requirement of parabolic springs is being met from the company’s Malanpur plant.Mr. Randeep Jauhar, Managing Director, Jamna Auto Industries Ltd., said: “India has firmly established its position among the fastest growing and cost-efficient automobile markets in the world, leading to large global automakers setting up their production units here. Southern India has been a key region for these automakers. As a strategic initiative, we have decided to expand our manufacturing presence in this region. It will not only enable us to gain proximity to our customers but would also enable us to provide cost-effective quality products”.

Jamna Auto, the second largest spring manufacturers in the world, had recorded a consolidated sales turnover of Rs. 661 crores and profit after tax of Rs. 11 crores for 2009-10. In the first nine months of 2010-11, the company recorded a consolidated turnover of Rs. 696 crores and profit after tax of Rs. 25 crores.