03 NOVEMBER 2014www.thehindubusinessline.com
Auto parts maker Wheels India to focus on exports to sustain growth
Edited by : AL CIRCLE
2 min read
Wheels India Ltd, an automotive wheel manufacturer, is depending on the export market to sustain its growth.
The company’s investments of ?80-85 crore in the current year will focus on exports including capacity additions in aluminium-forged wheel production, other export-oriented products and expansion into allied products that are in demand in the domestic markets, according to Srivats Ram, Managing Director, of the TVS group company.
Capacity addition
About 40 per cent of the proposed investments will be in capacity addition of forged-aluminium wheels, which are exported to the US and Europe.
The production is about 60,000 units now and will increased to about 1 lakh, he said.
Wheels India hopes to sustain exports at about 20 per cent of its business.
On the domestic front there is some year-on-year growth in commercial vehicles segment, primarily buses. This is driving demand for air suspension products. The company will start production of an associated product, lift axles, from January for which it has entered into a technical tie up with EGE Endustri, Turkey.
For the second quarter that ended September 30, 2014, the company reported a growth in net profit over that of the comparable quarter in the previous year to ?9.51 crore (?8.73 crore) on an income of ?469.83 crore (?424 crore).
Cost increases driven by materials and power are a concern, he said.
The company’s investments of ?80-85 crore in the current year will focus on exports including capacity additions in aluminium-forged wheel production, other export-oriented products and expansion into allied products that are in demand in the domestic markets, according to Srivats Ram, Managing Director, of the TVS group company.
Capacity addition
About 40 per cent of the proposed investments will be in capacity addition of forged-aluminium wheels, which are exported to the US and Europe.
The production is about 60,000 units now and will increased to about 1 lakh, he said.
Wheels India hopes to sustain exports at about 20 per cent of its business.
On the domestic front there is some year-on-year growth in commercial vehicles segment, primarily buses. This is driving demand for air suspension products. The company will start production of an associated product, lift axles, from January for which it has entered into a technical tie up with EGE Endustri, Turkey.
For the second quarter that ended September 30, 2014, the company reported a growth in net profit over that of the comparable quarter in the previous year to ?9.51 crore (?8.73 crore) on an income of ?469.83 crore (?424 crore).
Cost increases driven by materials and power are a concern, he said.
Unlock full access – sign up for FREE.
Key benefits
Find exclusive data-driven insights and in-depth analysis
Get our daily newsletter delivered straight to your inbox
Access real-time and historical price trends from global indices
Post and respond to latest business leads
Stay ahead with alerts on learning tools
...and so much more!SIGN UP / LOGIN
Previous article
China Zhongwang Holdings releases its results for the first three quarters
Next articleAlcoa Foundation Awards $45,000 grant to Collision repair education foundation
Grow with
AL Circle
