Auto component maker JBM Auto Ltd has signed up a joint venture (JV) deal with the commercial vehicle giant, Ashok Leyland to supply sheet metal components for their G90 Cab and G-90 FES.

Delhi-based JBM will hold 74% equity stake in the joint venture, whereas the Ashok Leyland hold the remaining 26%.

The joint venture will frame up high-tech facilities at Pant Nagar, Uttarakhand with a total investment of Rs 100 crore. It will have large pressing as well as welding plants.

Ashok Leyland is establishing integrated facilities at Uttarakhand.

The JV will commence commercial operations by 2010 in proportion to the Ashok Leyland plan for the manufacture of commercial vehicles.

At 12:45 pm, the shares of JBM Auto gained 2.7% at Rs 45.80 on the Bombay Stock Exchange (BSE).