Targeting Rs. 1,000-crore turnover
An exclusive interview with Mr. Madhukar Sharma, Global Head – After Market, Jamna Auto Industries Ltd.
Jamna Auto Industries Ltd., a leading leaf spring manufacturing company was established in 1954 as a small shop in Yamuna Nagar, Haryana.
Today, it is India’s largest and world’s third largest producer of leaf and parabolic springs having 7 state-of-the-art manufacturing units with an overall production capacity of 180,000 metric tonnes and 22 state-wise warehouses supplying to commercial vehicle giants like Ashok Leyland, Tata Motors, Mercedes, Volvo, Renault Nissan, etc. JAI’s manufacturing facilities are strategically situated at Yamuna Nagar, Gwalior, Rudrapur, Lucknow, Chennai, Jamshedpur and Hosur. The facilities at Yamuna Nagar, Gwalior and Chennai are considered to be its hi-tech plants where the operations are robotized.
In the FY 2012, the company’s consolidated sales revenue reached record levels of Rs. 1,200 crores. Although the company’s growth is largely OE driven, it is keen to tap the huge potential out of the profitable aftermarket – India/Exports and substantially improve its future revenues and earnings. During an exclusive interview to MOTORINDIA in the company’s corporate headquarters at New Delhi, Mr. Madhukar Sharma, Global Head – After Market, Jamna Auto Industries Ltd., shared the company’s financial objective to achieve a greater turnover of Rs. 700 to 1,000 crores in the aftermarket sales within the next five years.
He also added that, “In the year 2011-2012, the revenue from the aftermarket sales had gone up from Rs. 100 crores to Rs. 140 crores and this year our target is to reach the Rs. 250 crore mark.”
In order to achieve this ambitious target in the aftermarket business, JAI has taken major initiatives to expand the product range, widen its reach and restructure its warehouse and logistics. In order to expedite the delivery of its products, the company aims to reach the customers located within 250 kilometres in about 24 hours, 500 kilometres in 48 hours and 750 kilometres in 72 hours.
It is also ensuring that its aftermarket orders are executed within a span of 24 hours for which it is setting up warehouse hubs in different parts of the country – Nagpur for Western India, Jamshedpur for the East and Chennai for the South.
This market leader in spring manufacturing works in close partnership with several automobile OEMs, at both the domestic and international level. Apart from the fact that JAI holds 66% market share of all the leading Indian OEMs, it is also the single source supplier for companies like Daimler’s Bharat Benz, Ashok Leyland Ltd., MAN Trucks India, etc.
Mr. Sharma attributes the success of the company to its commitment, quality R&D and product development combined with an affordable cost structure.
Currently, the company is said to diversify its product range by including air suspension, lift axle and bogie suspension for which it has entered into a technical tie-up with Ridewell Corporation of U.S.A.
It also has equity participation by NHK Spring Co., Japan, its foreign collaborator for technology transfer for manufacture of leaf springs.