Jamna Auto Industries has announced the approval for establishing a new Leaf Spring Manufacturing Facility. This expansion will be integrated into the existing plant of its wholly-owned subsidiary, Jai Suspensions Limited. The project involves an investment of approximately ₹47 crore and is projected to commence commercial production around December 2027, with the aim to enhance manufacturing capabilities and cater to the East India market.
Jamna Auto Industries Expands Manufacturing Capacity
Jamna Auto Industries Limited has received approval from its Board of Directors for a strategic expansion initiative. The company will establish a new Leaf Spring Manufacturing Facility. This new facility will be set up at the existing manufacturing plant of its wholly-owned subsidiary, Jai Suspensions Limited.
Project Details and Investment
The proposed capacity of the new facility is set at 1,500 MT per month. The estimated investment required for this project is approximately ₹47 crore, subject to potential adjustments by management. The expansion is planned as a brownfield project at Adityapur, Jharkhand. This strategic move is designed to bolster the Group’s manufacturing capabilities.
Timeline and Strategic Rationale
Commercial production from the new facility is anticipated to commence around December 2027. The primary rationale behind this expansion is to enable the subsidiary to cater more effectively to Original Equipment Manufacturers (OEMs) and the aftermarket segment in East India. The project aims to leverage existing infrastructure and operational synergies, reinforcing Jamna Auto’s market presence and operational efficiency.
Financing and Governance
The expansion will be primarily financed through internal accruals. The Board’s approval signifies a commitment to organic growth and enhancing production capacity to meet anticipated market demand.
Source: BSE
