Auto component maker JBM Auto plans to spend more than Rs 200 crore this financial year towards expanding some of its existing facilities and to focus of new projects, according to a top company official.
Nishant Arya, executive director, JBM Group said, "There is no slowing down in capital expenditure. In fact we would be spending more this year...in excess of Rs 200 crore. It would be used for capacity enhancements in different divisions and towards new projects".
Last year, the company had announced an investment of Rs 100 crore for a greenfield facility that was to be set up in Indore to cater to Volvo-Eicher, MAN and Mahindra Mahindra.
Further, Arya said that deliveries of first of the 200 low-floor city buses will commence next month. The group recently entered the bus manufacturing segment through a partnership with European bus maker BredaMenarininbus (BMB).
"We will start the deliveries of the buses from next month. We have an order book of 200 buses from state transport undertakings and airport operators", Arya added.
The bus venture was floated under a new company JBM Motors to tap the projected increase in demand for buses following government's intention of improving infrastructure and promoting public transport. The group had invested Rs 500 crore to manufacture these buses with a localisation of 85%.
The company does not have any immediate plans to enter the luxury segment as of now. Ashok Leyland and Tata Motors dominate the bus segment in India. Volvo and Scania have been selling luxury buses plying on long distance routes
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