Wheels India to open new aluminium wheel facility in Chennai

Wheels India Ltd announced it will set up a cast aluminium wheel plant in Thervoy Kandigai, Chennai. The company will make an investment of INR140 crore. The new facility will start operations next year with an annual production capacity of 7.5 lakh wheels.

Wheels India reported a net profit of INR28.67 crore for the second quarter ended September 30, 2019, up from INR22.67 crore in the corresponding period last year. Revenue decreased from INR805.28 crore to INR595.63 crore.

Wheels India is a manufacturer of steel wheels for trucks, buses, passenger cars, utility vehicles, etc. The company has a combined overall annual capacity of 10.3 million tonnes. The company has a diversified customer base with over 40 customers.

Srivats Ram, Managing Director, Wheels India Ltd., said, “While there was a severe slowdown in the CV and PV industry affecting the automotive component business, it was partially offset by strong growth in the industrial component business.”

 “The truck industry had a quarter of severe slowing down accompanied by a similar trend in the light vehicle and construction equipment industry. There are signs of slowing global demand affecting our business. At the same time, we have been able to grow our bus air suspension business and our railway and windmill business, where we have started executing some export opportunities.”