JTEKT India approves CVJ line capacity expansion at Jalisana plant

The CVJ capacity expansion in numbers

What the expansion adds

JTEKT India has approved a capacity expansion for its CVJ line, adding about 0.8 million units at Jalisana, Gujarat, to an existing capacity of about 1.2 million. The addition would increase total line capacity by roughly two-thirds, based on the approximate figures given.

The filing gives the existing capacity utilisation as 90% (approx.). The company says the additional capacity will help it cater to the demand of fast-growing Indian OEMs. The filing does not name the OEMs or any contracts behind that demand.

Timing and financing

The proposed capacity is to be added by August 2028. A constant velocity joint is a drive-shaft component used in vehicles, and the CVJ line is the production line for it.

The company says the expansion will be financed through a mix of internal accruals and borrowings, but the filing does not give the split between the two.

What the CVJ expansion means for JTEKT India's shareholders

The filing sets out a plan to add capacity to the CVJ line at Jalisana, with completion by August 2028. The company has not yet fixed the investment, so its size and cost to the company are not known. The filing does not say what revenue or profit the expansion will bring, the split between internal accruals and borrowings, or whether any related party is involved.

The next dated step in the filing is the period ending August 2028 for adding the capacity.

Reference: Original filing (PDF)