Chennai: Jamna Auto Ltd, which recently acquired the assets of the leaf springs business of Tata Motors, intends to merge two group companies with itself and invest Rs 120 crore in expansion.
The JAI group had set up in 1997 a company, Jai Parabolic Springs Ltd, which has a manufacturing unit near Chennai. The group also has a company, MAP Springs, which markets auto components.
JAI group intends to merge Jai Parabolic Springs and MAP Springs with the flagship company, Jamna Auto Ltd. The turnover of the merged entity in 2007-08 is expected to be Rs 530 crore, projected to grow to Rs 670 crore next year.
R&D centre in Chennai
Randeep Jauhar, CEO, JAI group, told a press conference here today that the group would invest Rs 120 crore in expansion. Of this, Rs 75 crore would be invested in expanding the Jamshedpur plant, which would house the plant and machinery bought from Tata Motors.
The group is investing another Rs 10 crore in a greenfield plant at Uttaranchal and another Rs 15 crore in an R&D centre in Chennai.
Clearwater Capital Partners - a private equity player - has invested Rs 40 crore of equity in the company in June 2007 at Rs 72 per share. On the BSE today, Jamna Auto shares closed at Rs 51.35.
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