New Delhi, Jan 13 Auto component major Jay Bharat Maruti (JBM) Ltd has said that it is aiming a five-fold rise in exports in the next seven years on the back of new and existing sourcing contracts from global auto majors such as Volvo, Husqvarna, Renault and General Motors.
The company, which mainly manufactures sheet metal and tubular components, will also export whole body panels for special purpose vehicles (SPVs) like ambulances and fire brigades, to various countries in West Asia.
“Currently, exports account for 5 per cent of our turnover, but on the back of various new orders we are aiming to increase this to 25 per cent of our turnover in the next seven years,” said Mr Nishant Arya, Executive Director, JBM Group, while speaking to Business Line.
JBML, a major supplier for Maruti Suzuki, is also targeting a sales growth of 30 per cent at Rs 3,500 crore in 2009-10. Amid tight market conditions, JBM had posted revenues of Rs 2,700 in the last fiscal.
Expansion
As the domestic market grows exponentially, the company is also building many new plants in the country for supply to companies like Maruti Suzuki, Tata Motors, Volkswagen and Toyota. It is investing upwards of Rs 500 crore towards the new plants and expansion of its existing facilities. JBM has a total of 29 plants across 11 locations in the country.
A plant in Bangalore for supply to Toyota, with an installed capacity of 70,000 sets, is expected to become operational in the next few months. This plant would supply components for the new Toyota Etios, said Mr Arya.
Meanwhile, another plant at the Sanand vendor park for the Tata Nano, will also take a few months to start operations.
This would have a capacity of three lakh units a year.
About a year ago, JBM had built a new plant at Manesar for supply to Maruti Suzuki, while another at Pune has also become operational about eight months ago. With a capacity of 2.5 lakh sets a year, the Pune plant makes full body skin panels for Tata, Fiat and Volkswagen.
“We will be the largest suppliers for new cars like the Ford Figo, Nissan Micra and the Toyota Etios. We also manufacture whole bodies for SPVs like large car carriers in Faridabad. We are planning to build 600 car carriers a year, but have built 50 till now. We're also the largest manufacturer of railways coach doors,” said Mr Arya.
Third Quarter Result
JBML has also announced a four-fold increase in its net profit at Rs 5.41 crore for the quarter ending December 2009.
In the same period last year, the company had posted a net profit of Rs 1.08 crore.
According to Mr Arya, the rise in profits is due to lower prices of flat steel products in the quarter, as compared to the same quarter last year. Another reason is a rise in production at Maruti Suzuki by 35 per cent. Maruti Suzuki is JBML's largest single customer and also holds a stake in the company.
Total income for the period rose 31 per cent at Rs 204.23 crore.
JBML shares at the BSE were up 2.01 per cent at Rs 76.25 on Wednesday, from Tuesday's close at Rs 74.75.
Source : Business Line