JBM Auto Ltd., India’s fast growing automotive company, is looking to enlarge its presence in manufacturing products for commercial vehicle transportation solution. In 2005, the company established a separate division for manufacturing special purpose vehicles (SPVs) under which it manufacturers tippers, trailers and garbage compactors. Today, JBM is recognised as a major player in this segment providing high quality transportation solutions. The JBM Group was started by Mr. S. K. Arya who is now its Chairman.
Having gained foothold in the tipper and trailer segment, JBM is now looking at offering complete transportation solutions both in the cargo and passenger segments. In the cargo segment, JBM is in final stages of discussions with an overseas company to manufacture the complete range of products, including tankers, bulkers, refrigerated vans and containers and trailer axles. In the passenger segment, it is seriously evaluating JVs with a few global bus manufacturers for producing inter-city and city buses.
All these projects are on the drawing board. The company is expected to make official announcements soon, and the projects will be operational by 2010, says Mr. Vinay Maheswari, Business Group Head (JBM Auto – SPV Division & JBM Industries), JBM Group.
The JBM Group has 28 plants spread across 11 locations. With a turnover of more than Rs. 2,500 crores in 2007-08 it has presence in steel processing, sheet metal pressing, welded assemblies, exhaust systems, fuel tanks, steel tubes, LPG cylinders for the auto sector, tool/die manufacturing, high-tensile fasteners, tailor-welded blanks, waste mgmt & SPV manufacturing.
The SPV Division which is part of JBM Auto Ltd. has two manufacturing facilities – one at Faridabad and the other at Kosi Kalan in U.P. Currently the division manufacturers tippers, trailer and garbage compactors and caters to major OEMs like Tata Motors, Ashok Leyland and MAN Force Motors. The SPV Division has capacity to manufacture 5,000 units per annum. The company sold over 2,500 units in 2007-08 and over 1,500 units the previous year. This is a mix of tippers, trailers and garbage compactors.
JBM’s big break in the SPV Division came when it entered into a joint venture agreement with Fanalca S.A of Columbia. JBM’s tie-up with Fanalca has opened new avenues for the group. The group has formed a JV company, Neel Metal Fanalca, for providing solid waste management solutions. There is a significant increase in solid waste generation in cities over the last decade. This has necessitated modernization and mechanization of the solid waste management system so as to provide a healthy and hygienic environment for living and working.
Looking into this potential, the company entered the solid waste management business to manufacture garbage compactors suitable for tough conditions.
The JBM Group (Neel Metal) has acquired technology for the manufacture of garbage compactors from its joint venture partner Fanalca which is engaged in manufacturing garbage compactors in various parts of the world since last 20 years. Garbage compactors manufactured by it are being used in many countries.
Today Fanalca is operating in many Latin American countries collecting more than 2700 MT of solid waste every day. Its efforts are predicated on collaboration with the French company, Vivendi, universally recognized as the leader in waste management, water resource solutions and public health.
Since 1986, Fanalca is also manufacturing garbage compactors and stationary boxes under licence from Peabody Galion of the US. The Neel Metal Fanalca JV has bagged two major contracts – the first from the Chennai Municipal Corporation and the second from the Ambattur Municipal Corporation – for solid waste management. The company is negotiating with many more city corporations across India for providing similar services, says Mr. Maheshwari.
Globally, Fanalca also has long experience in BRTS (bus rapid transport system) and has been operating the Transmilenio System in the city of Bogotá, Columbia. It was instrumental in establishing the system, and since then has been involved in running the same.
JBM and Fanalca believe that its unique expertise in this domain would add significant value to any BRTS initiative and would be in a position to design and deliver a complete BRTS project for Indian metros, starting from establishing the viability of the proposed project, designing and implementing the system, providing highly skilled and proficient manpower for ensuring operational efficiency, and imparting training and even operating the system. JBM is also talking to a few cities for implementing the BRTS project.
Other projects
Apart from the SPV Division, JBM Auto, which is engaged in the manufacture of sheet metals components, tools and dies primarily for automotive applications, has been selected by Tata Motors as one of the suppliers of components for its Nano project. The company is setting up a dedicated facility to supply components for the Nano project. JBM is setting up a new manufacturing facility in Lucknow to manufacture sheet metal components, assemblies, etc. for Tata’s HCV/LCV range of vehicles. It has also plans to set up manufacturing facilities at Chennai to cater to the Renault Nissan car project and in Bangalore for manufacturing sheet metal parts to cater to the Toyota car project.
JBM has also established a 50:50 JV with Magneto Spa of Italy for manufacturing skin panels, underbody components, BIW and other sheet metal components for the Tata Fiat JV. The total investment on the project is close to Rs. 250 crores. The JV has set up a state-of-art press shop with robotisation comprising four press lines ranging from 2000 ton, 1600 ton and 800 ton.
JBM Auto and Sandhar Technologies Ltd. have also established a 50:50 joint venture to maintain and operate the tool room and technical centre of Pithampur Auto Cluster Ltd. (PACL) situated at Indore. Recently JBM Auto and Ashok Leyland set up a JV to establish a manufacturing facility at Uttrakhand to manufacture and supply of sheet metal components and fully build cabins for their commercial vehicles. The project which will have large pressing and welding facilities is expected to start commercial production by 2010.
The JBM Group, in its Silver Jubilee year, has started spreading its wings. With its inherent strengths in design, engineering and manufacturing, the company is making it the preferred OEM for most of the domestic and global auto majors. The SPV Division looks promising considering the future growth potential both in the cargo and passenger segments.
The unexpected recession in the automotive industry, particularly in the commercial vehicle segment, has had its impact on the company’s plans for this division, adds Mr. Maheswari.
mpany aims to be a serious player in providing complete transportation solutions.
