Diversifying from auto components to bus manufacturing, the Gurgaon-based JBM Group is now firming up plans to formally inaugurate its bus plant at Kosi, Uttar Pradesh,  in mid-August this year. At the same time, it will also begin deliveries of its premium low-floor buses. The company has already received orders for 200 buses, which are currently in the manufacturing stage.

JBM Motors had launched its first low-floor bus called Citylife designed for intra-city travel in India around a year-and-a-half ago at Auto Expo 2014. By end-March 2016, JBM will have invested Rs 500 crore in the bus project that will see the Citylife manufactured in technological partnership with European bus-maker BredaMenarinibus.

The buses will have three key customers – state transport undertakings, airports and schools across India. Some new orders are also in the pipeline. While JBM’s bus business began with the 230CNG bus, it has now added the diesel version, which will roll out later this year, to its product stable, Nishant Arya, executive director of the JBM Group, told Autocar Professional.

Both buses have a high 90 percent localisation content. Capacity at the Kosi plant, which can roll out 2,000 buses per annum, can be ramped up to meet rising market demand.

The JBM Group’s bus marketing strategy revolves around the cost of ownership factor to customers. Today most bus buyers are believed to be buying products which have a lifespan of 8-10 years but JBM claims its buses can outlive them by an additional 20 percent. Equipped with a monocoque body structure instead of a normal body and chassis frame, they will have an extended lifespan of 12 years.

Focusing on the premium bus segment, JBM is eyeing the Indian government’s Smart Cities project wherein the focus will be on smart urbanisation to drive up demand for buses, which will be an integral mode of transport.

“There are big cities that are looking to develop their network for feeder buses and their network for daily commuting of people. Many old buses are coming off the roads, so new buses have to be planned. Our target is to create a comprehensive product range in buses over the next 5 years in the 6-18-metre range,” says Arya.

In 2014-15, JBM Auto generated revenues of Rs 1,557 crore mainly from auto components. With the Indian economy in recovery mode, in FY’16, it is targeting a 25-30 percent jump in revenues with a portion contributed by the new bus business. The JBM Group overall posted a topline of Rs 8,500 crore in the last fiscal.