DELHI-BASED JAI Group, manufactures of multi leaf springs and parabolic leaf springs for major OEMs in India and abroad, is in the process of restructuring its group companies. The group comprises two companies - Jamna Auto Industries Ltd (‘Jamna’) and Jai Parabolic Springs Ltd (‘JPSL’).
The company has also decided to merge MAP Springs into Jamna Auto. MAP Springs is involved in the business of marketing and distributing automotive springs in the replacement market. The merger proposal has been approved by the Bombay Stock Exchange. The merger swap ratio that has been valued by independent valuers is 2 equity shares of Jai Parabolic Springs Ltd for 1 equity share of Jamna Auto Industries limited.
The group has three manufacturing capacities across 3 key locations in Yamunanagar (Haryana), Malanpur (Madhya Pradesh) and Chennai (Tamil Nadu). It has an annual capacity of 125,000 MTPA (slated to double over the next 2 years). Yamunanagar and Malanpur plants are part of Jamna and the Chennai plant was set up in JPSL. Both companies are listed on the BSE.
Bhupinder Singh Jauhar, promoter of the company, said. “With this merger, the group will present a common face to customers with a view to enhance its branding amongst the trade as well as the financial community. In order to build economies of scale, derive the benefits of operating synergies between the two companies and leverage the combined balance sheets for growth, we decided to merge Jamna and JPSL.”
The group supplies suspension springs to all major OEMs in India including Tata Motors, Ashok Leyland, Eicher Motors, Swaraj Mazda, Maruti, Mahindra & Mahindra, Bajaj Tempo and Ford Motors.
The group is promoted by Bhupinder Singh Jauhar and his two sons, Randeep Jauhar and Pradeep Jauhar