Wheels India to ramp up plant capacity, invest Rs 75-cr

Wheels India, a TVS Group company engaged in manufacturing steel wheels, today said it plans to invest Rs 75 crore in the current fiscal as part of expanding plant capacity.
"What went well for us is the air suspension business. Half the volume growth in the first half has been from the segment. This year, we are making investments in expanding capacity", Wheels India Managing Director, Srivats Ram told reporters.
The Chennai-based company, which makes steel wheels for cars, utility vehicles, trucks, buses and agricultural tractors, has manufacturing facilities in Pune, Rampur, Bawal, Pant Nagar, Sriperumbudur and Padi near Chennai, with a total capacity of 16 million wheels.

"The investments will be Rs 75 crore. We are expanding aluminium wheels capacity by 25 per cent. In the wind energy segment, revenues are likely to increase by 15 per cent next year," he said.
The company is focusing on non-wheels business as an area of growth, as more than 50 per cent of the topline growth in the first half was driven by the non wheels business.
On the exports front, Ram said it is expected to drop to 16 per cent during the current fiscal as compared to last year's 19 per cent.

"Last year exports contributed 19 per cent of sales. This year, it is going to be 16 per cent. Segments like construction and mining are down globally. We feel exports (this year) will be less than last year," he said.

To a query, he said growth in the domestic market would by and large offset the export de-growth.
"If it was not for the de-growth in exports, we would have grown even higher in the first half. Next year, we expect exports to grow", he said.
"We expect the revenues in the second half to be in line with first half (of current financial year). Outlook for the domestic business is good, especially in the agricultural, cars and tractor segments", he said.