JBM Auto to make buses

MUMBAI: The Indian bus segment will soon have a surprise participant from one of its key component suppliers. JBM Auto, which caters to the sheet metal requirements of big commercial vehicle manufacturers such as Volvo, Ashok Leyland, Eicher and Tata Motors, will soon start making full-fledged buses on its own.

S K Arya, group chairman, said the company is entering the business because it saw a ‘huge gap in quality transport’. “We are already in talks with some world leaders. But it is too early to divulge any names,” he said.

Speculation is rife that Scania is one of them. The Swedish company already has a distribution agreement with Larsen & Toubro for its trucks. Volvo can be ruled out because it has already bought into Eicher while Daimler has recently forged an agreement with the Hero group. Similarly, MAN is in an alliance with the Pune-based Force Motors.

On the rationale behind this foray, Arya said JBM Auto already has a large presence in sheet metal and chassis parts businesses, which fit in well with buses. “We want to do both intra- and inter-city buses, offering low floor and luxury options. In other words, we are looking at a complete vehicle starting from the chassis to powertrain etc,” he said.

The buses will be co-branded with the name of the joint venture partner. JBM Auto has already started scouting for a suitable site with enough space for chassis manufacturing, cowl building, interiors etc.

Arya said this would have to be a completely integrated plant where components such as engines and air-conditioners would be outsourced. The company may look at more than one location once business grows enough to justify capacity expansion.

JBM Auto is already into the manufacture of trailers and special purpose vehicles. It has also begun making garbage compactors at its Faridabad and Kosi facilities along with Fanalca of Colombia. “With garbage compactors, we have got into waste management and now we manage the four zones of Chennai, covering 50% of the city,” Arya said. Fanalca is considered one of the best in solid waste management with operations in Panama and Chile, in addition to Colombia.

The South American company was among the first in the world to start the bus rapid transit system (BRTS) in Bogota. JBM is now eyeing this segment too in partnership with Fanalca and is looking at designing the entire system.

JBM Auto was in the news recently for its Rs 410-crore investment plan, which involved setting up of three plants for supply of critical parts to Fiat and Tata in Chakan, Ashok Leyland in Pantnagar and the Renault-Nissan combine which is commissioning a Rs 4,500-crore car plant in Chennai.

g_murali@dnaindia.net