After establishing its strong presence in the bus segment, the JCBL Group is planning a major foray into the cargo segment. The JV with Marrel for tippers is the entry point for the group in the cargo segment. There are plans to tap the cargo side of the business in total, starting from tippers to petroleum tankers, refrigerated vans and to cement bulkers, according to Mr. Rishi Aggarwal, Director, JCBL Group.
The company is already in the final stages of discussion with a global manufacturer for foraying into this product segment. “After tippers, the next big segment we are looking at is cement bulkers, and we hope to roll out the first few units by mid-2009. The JV with Marrel, a world leader in tipper manufacturing shows that we want to partner with the best in the industry. We want to be No.1 in whichever business we operate in”, says Mr. Rishi.
Chennai bus plant
JCBL is also setting up a bus manufacturing facility in South, near Chennai. The company has obtained 24 acres of land from SIPCOT at Oragadam on the outskirts of the city, right next to NATRIP’s global automotive testing centre. The JCBL-Marrel tipper manufacturing facility has been established on a 6-acre plot at the same site, and the balance available space will be utilized for the bus manufacturing facility and other future projects.
With the tipper plant into commercial production, JCBL will now start construction of the bus plant immediately and in 6 to 8 months the company plans to roll out buses from the Chennai plant which will primarily cater to OEM and private customers in South.
The Chennai bus plant will have a capacity to produce 2,000 buses in the first phase and 4,000 in the second phase. The South has traditionally been an important market for JCBL with customers coming both from the State transport corporations and private segment. By establishing a plant in Chennai, JCBL will be able to cater to the requirements of its customers in the South.
Today the JCBL Group has emerged as India’s leading bus body builder, building over 5,000 buses and 3,000 cargo bodies last year. For the current year the company targets to manufacture over 6,500 buses and 4,000 cargo bodies. JCBL currently works with all major OEMs like Tata Motors, Swaraj Mazda and Eicher Motors.
Says Mr. Rishi: “The year 2007-08 was a tough one. We were hit very badly by the rising steel prices and input costs and as a result, we cut down on production. But the current year has started well. We are targeting 40% growth during the current year. We achieved record production in June with 114 bus bodies. This is the highest ever”.
JCBL currently has a capacity to manufacture 7,000 buses. The company has substantially expanded the capacity in its existing plants by adding two more new lines.
The company builds truck and bus bodies for these OEMs. Apart from OEM customers, the company has its own set of private customers for whom JCBL provides customised solutions like the Happy bus range of school buses, Mobile homes, ATM vans, Mobile display vans, Life line+ range of ambulances & mobile hospitals and even election campaign vans. More than 40 per cent of the total business comes from private customers.
Cerita Motors
Cerita Motors, the fully-built-bus manufacturing unit of JCBL, has also been doing well. In 2007-08 Cerita delivered over 60 fully built buses, and for the current year the company is targeting sales of over 120 buses which includes both the high-end city buses and inter-city coaches. The company has recently received order for city 50 buses from BEST of Mumbai, apart from the 20 vehicles already delivered.
MSL-GHE
In 2007, MSL, part of the JCBL Group, entered into a joint venture agreement with GHE Group of Italy (Happich and Ellamp), for manufacturing bus components. MSL-GHE Ltd. (MGL) manufactures bus components and interiors including locks, roof hatch, roller blinds, sun visors for all segments of buses. The new JV has started commercial production and has moved into a new facility.
Currently in India there are no specialised component manufacturers for the bus segment. For example, car locks are being used on buses, which doesn’t last for a longtime. So there is a huge requirement for quality bus components and interiors.
Mr. Rishi observes: “Happich is a leading name in bus components and Ellamp is again a global name in bus interiors. Jointly we are offering the complete range of components in the Indian market not just to cater to the requirements of JCBL but to other bus manufacturers as well”.
MSL, the seat manufacturing arm of JCBL Group has also had a great year. “We have been supplying good numbers to Tata Motors OE and many other body builders and we hope to close the year with turnover of Rs. 70 crores this year. MSL was the first manufacturer to get ARAI approval for seats”, adds Mr. Rishi.
With the entry of global players, the way the bus body building industry is perceived in India will totally change. With more players coming in, OEMs will also understand the complexities in the business, and the value add that the body builder brings in. The requirement for buses in India so large that there is going to be huge demand for buses in future. The biggest advantage that companies like JCBL can offer is the customising capability.
With ARAI’s bus code coming into effect from April 2009, the industry will get more organised and this offer more opportunities for growth for companies like JCBL who have developed design and manufacturing capabilities matching global standards.
The company is already in the final stages of discussion with a global manufacturer for foraying into this product segment. “After tippers, the next big segment we are looking at is cement bulkers, and we hope to roll out the first few units by mid-2009. The JV with Marrel, a world leader in tipper manufacturing shows that we want to partner with the best in the industry. We want to be No.1 in whichever business we operate in”, says Mr. Rishi.
Chennai bus plant JCBL is also setting up a bus manufacturing facility in South, near Chennai. The company has obtained 24 acres of land from SIPCOT at Oragadam on the outskirts of the city, right next to NATRIP’s global automotive testing centre. The JCBL-Marrel tipper manufacturing facility has been established on a 6-acre plot at the same site, and the balance available space will be utilized for the bus manufacturing facility and other future projects.
With the tipper plant into commercial production, JCBL will now start construction of the bus plant immediately and in 6 to 8 months the company plans to roll out buses from the Chennai plant which will primarily cater to OEM and private customers in South.
The Chennai bus plant will have a capacity to produce 2,000 buses in the first phase and 4,000 in the second phase. The South has traditionally been an important market for JCBL with customers coming both from the State transport corporations and private segment. By establishing a plant in Chennai, JCBL will be able to cater to the requirements of its customers in the South.
Today the JCBL Group has emerged as India’s leading bus body builder, building over 5,000 buses and 3,000 cargo bodies last year. For the current year the company targets to manufacture over 6,500 buses and 4,000 cargo bodies. JCBL currently works with all major OEMs like Tata Motors, Swaraj Mazda and Eicher Motors.
Says Mr. Rishi: “The year 2007-08 was a tough one. We were hit very badly by the rising steel prices and input costs and as a result, we cut down on production. But the current year has started well. We are targeting 40% growth during the current year. We achieved record production in June with 114 bus bodies. This is the highest ever”.
JCBL currently has a capacity to manufacture 7,000 buses. The company has substantially expanded the capacity in its existing plants by adding two more new lines.
The company builds truck and bus bodies for these OEMs. Apart from OEM customers, the company has its own set of private customers for whom JCBL provides customised solutions like the Happy bus range of school buses, Mobile homes, ATM vans, Mobile display vans, Life line+ range of ambulances & mobile hospitals and even election campaign vans. More than 40 per cent of the total business comes from private customers.
Cerita Motors
Cerita Motors, the fully-built-bus manufacturing unit of JCBL, has also been doing well. In 2007-08 Cerita delivered over 60 fully built buses, and for the current year the company is targeting sales of over 120 buses which includes both the high-end city buses and inter-city coaches. The company has recently received order for city 50 buses from BEST of Mumbai, apart from the 20 vehicles already delivered.
MSL-GHE
In 2007, MSL, part of the JCBL Group, entered into a joint venture agreement with GHE Group of Italy (Happich and Ellamp), for manufacturing bus components. MSL-GHE Ltd. (MGL) manufactures bus components and interiors including locks, roof hatch, roller blinds, sun visors for all segments of buses. The new JV has started commercial production and has moved into a new facility.
Currently in India there are no specialised component manufacturers for the bus segment. For example, car locks are being used on buses, which doesn’t last for a longtime. So there is a huge requirement for quality bus components and interiors.
Mr. Rishi observes: “Happich is a leading name in bus components and Ellamp is again a global name in bus interiors. Jointly we are offering the complete range of components in the Indian market not just to cater to the requirements of JCBL but to other bus manufacturers as well”.
MSL, the seat manufacturing arm of JCBL Group has also had a great year. “We have been supplying good numbers to Tata Motors OE and many other body builders and we hope to close the year with turnover of Rs. 70 crores this year. MSL was the first manufacturer to get ARAI approval for seats”, adds Mr. Rishi.
With the entry of global players, the way the bus body building industry is perceived in India will totally change. With more players coming in, OEMs will also understand the complexities in the business, and the value add that the body builder brings in. The requirement for buses in India so large that there is going to be huge demand for buses in future. The biggest advantage that companies like JCBL can offer is the customising capability.
With ARAI’s bus code coming into effect from April 2009, the industry will get more organised and this offer more opportunities for growth for companies like JCBL who have developed design and manufacturing capabilities matching global standards.
JCBL is preparing for an exciting period ahead. Till 2000 JCBL was making buses bodies for just one OEM. In 2001 the company launched the first luxury bus and today the JCBL Group offers the complete range of products from small buses to top of the line luxury coaches. “We have expertise in the engineering and fabrication business and we have created strong relationships in the market. We will replicate the same success in the cargo business as well”, concludes Mr. Rishi.
