CHENNAI: Wheels India is lining up a capex plan of Rs 225 crore in the current financial year, company chairman S Ram said at the AGM on Wednesday.
The company is ramping up machining large windmill castings production as well as expanding its aluminium wheels business.
“While the demand for windmill components was muted in FY24, we were able to ramp up production at our plant machining large windmill castings,” he said, adding that the plant is now a profitable business.
“We hope to ramp up in line with our casting partner,” said Ram.
On the aluminium wheels business, he said the production has been at 25,000 wheels a month which is expected to increase to 40,000 wheels a month this year.
Wheels India is also looking to focus on its export business and will form a subsidiary in Europe like the one it has incorporated in the US.
The company’s export business grew 24.5% in FY24 driven by export of earthmover wheels and aluminium wheels. Ram said that Europe and US subsidiaries would give a “further thrust to the business development in these geographies in line with the company’s commitment to grow the export business.”
The company saw its hydraulic cylinder business show good growth following the merger of Sundaram Hydraulics with Wheels India in FY24. “The hydraulic cylinder business has become profitable and is expected to show good growth going forward,” he told the shareholders.
In the commercial vehicle business, medium and heavy CV market showed marginal growth in FY24. There was a significant shift away from multi-axle vehicles towards tractor trailers, he said. The business supplying wheels to the construction equipment industry however saw growth in FY24 with increase in volumes with most customers, he added.
Wheels India made a net profit of Rs 68 crore on revenues of Rs 4619 crore for FY24.
The company is ramping up machining large windmill castings production as well as expanding its aluminium wheels business.
“While the demand for windmill components was muted in FY24, we were able to ramp up production at our plant machining large windmill castings,” he said, adding that the plant is now a profitable business.
“We hope to ramp up in line with our casting partner,” said Ram.
On the aluminium wheels business, he said the production has been at 25,000 wheels a month which is expected to increase to 40,000 wheels a month this year.
Wheels India is also looking to focus on its export business and will form a subsidiary in Europe like the one it has incorporated in the US.
The company’s export business grew 24.5% in FY24 driven by export of earthmover wheels and aluminium wheels. Ram said that Europe and US subsidiaries would give a “further thrust to the business development in these geographies in line with the company’s commitment to grow the export business.”
The company saw its hydraulic cylinder business show good growth following the merger of Sundaram Hydraulics with Wheels India in FY24. “The hydraulic cylinder business has become profitable and is expected to show good growth going forward,” he told the shareholders.
In the commercial vehicle business, medium and heavy CV market showed marginal growth in FY24. There was a significant shift away from multi-axle vehicles towards tractor trailers, he said. The business supplying wheels to the construction equipment industry however saw growth in FY24 with increase in volumes with most customers, he added.
Wheels India made a net profit of Rs 68 crore on revenues of Rs 4619 crore for FY24.
