Chennai-based Wheels India, a leading aluminium alloy wheels maker, has announced its decision to open fully-owned subsidiaries in Europe and the US. This is quite big news for the auto components manufacturer as the move will be fundamental for its growth internationally, strengthening its supply chains.
The Managing Director of Wheels India, Srivats Ram, asserted, "The emerging business potential in the US and Europe is giving us the reason for having people on the ground."
"We have started supplying aluminium wheels to the first OEM, and the production has more than doubled to around 24,000 per month when compared to the same period last year. We expect the second OEM in the cast aluminium segment in the first quarter of next year," he concluded.
The expansion would primarily look at offload business in construction and agri tractor segments. Wheels India is a leading manufacturer of wheels for trucks, agricultural tractors, passenger vehicles and construction equipment. It also makes air suspension systems for trucks and buses and produces industrial components for the construction and windmill industries. It has manufacturing plants in Tamil Nadu, Maharashtra, Uttar Pradesh and Uttarakhand.
The company has invested INR 72 crore in capital expenditure during the first half. 'We are planning a capex of around INR 80 crore in the second half of the year as we see business gaining traction in the second half,' Ram implied.
'Going forward, we expect capex to pick up steam', he pointed out, adding that it will go towards expanding cast aluminium capacity, process improvements in the steel wheels business and expanding the facility for machining in the windmill business. He expected volumes in the windmill business to pick up in the second half.
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