Chrys Capital-backed JMT Auto Limited (JMT), an auto-component manufacturer, will raise money from International Finance Corporation (IFC) for its proposed $20 million capex plan. One of the major suppliers for Tata Motors, Chrys Capital will use the proceeds for its greenfield cold forge facility.
JMT is an auto component manufacturer of high precision gear box, engine, and axle components for medium and heavy commercial vehicles. The company is a key supplier to Tata Motors Limited (TML's) Jamshedpur plant, BEML, Cummins India, Telcon, L&T Komatsu, Caterpillar India, TAFE and Timken India. The company also exports its products to global clients including Caterpillar USA, CNH, Cummins USA, Eaton and General Motors.
The BSE-listed company is controlled by Rajeev Singh Dugal and his associates, who have 51.05 per cent stake in the company, while Chrys Capital owns 30.48 per cent, and the balance is held by the public and other institutions.
The company currently owns four machining and heat treatment plants in Jamshedpur and also has a hot forging shop and a foundry in Jamshedpur, with good-casting capacity of 7,600 tonne per annum (tpa). In addition, the Company has two facilities in Dharwad, Karnataka and Lucknow, Uttar Pradesh.
Meanwhile, the company has taken 3.1 acres of greenfield land on a lease basis from the AIADA for setting up a cold forge facility at Jamshedpur, where the company's existing manufacturing facilities are located.
The total project cost is estimated to be around $20 million and IFC will be providing long-term financing to support the capex plan, according to IFC project document.
The Project will include the installation of a cold forging line which will help in reducing scrap rates along with providing better mechanical properties to end products. The Project also intends to ramp up the company’s heat treatment and CNC machining capacity.
The project, once completed, is expected to help create direct employment opportunity for approximately 250 people.