Exclusive: JBM Auto focusing on manufacturing electric buses, ED Nishant Arya tells Anil Singhvi; scrappage policy to benefit company, he says
A stalwart in the auto ancillary segment - JBM auto started operations as a cylinder manufacturer in 1983 and the group is now valued at over Rs 17,000 cr. The company has business operations in more than 10 countries with over 20 joint ventures. In todays edition of News Par Views, Zee Business Managing Editor Anil Singhvi spoke to Nishant Arya, Executive Director (ED) at JBM Auto. (#NewsParViews)
A stalwart in the auto ancillary segment - JBM auto started operations as a cylinder manufacturer in 1983 and the group is now valued at over Rs 17,000 cr. The company has business operations in more than 10 countries with over 20 joint ventures. In today’s edition of News Par Views, Zee Business Managing Editor Anil Singhvi spoke to Nishant Arya, Executive Director (ED) at JBM Auto. (#NewsParViews).
JBM Auto has a big focus on Electric Vehicles segment, Arya said and the company has been there in this segment for almost four years now. It had launched the first Make in India bus in 2016, he said. The company has done significant localisation under the FAME, he further said.
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He was responding to a question on how JBM Auto was planning to capitalise on the Government’s increased focus on Electric Vehicles and with Tesla already announcing its entry in the Indian Markets.
This has also been generating employment opportunities in the country, he said.
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On Capex and Market Share
Arya said that JBM Auto was currently doing a capital expenditure of Rs 500 cr. It has already done capex of Rs 200 - Rs 250 cr over the last two years in product technology and engineering design. The remaining Rs 250 cr will be done in capacity expansion, technology development, new product development, charging technology and battery technology.
On Scrappage Policy
He also said that the scrappage policy will be very effective and the government is planning to launch it at the right time. This will remove BS3 vehicles from the road which are a big cause of pollution, he said. The company will benefit as the new vehicles will come and in volumes.
Even in this year’s Union Budget, an allocation of Rs 18,000 cr is done for 20,000 buses. This is done in a Public Private Partnership Model, he said. There is a clear roadmap for the industry.
Moreover, the scrap of the vehicles will be reused that will create a circular section will be formed. Many new scrapping companies are also being set-up now, he said.
JBM Auto shares today ended at Rs 448 on NSE, up by 0.4 per cent.
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