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Wheels India, a TVS Group company, has entered into a 10-year technical agreement with Turkish manufacturing and engineering company EGE Endustri, one of the major suppliers to OEMs in Europe.
As per the agreement, Wheels India would get technology access in the Lift Axle market, which is a large segment in India, much bigger than the bus segment.
"We will be developing the products for OEMs. The full roll out of this business is expected in the next year," said Wheels India's MD Srivats Ram.
On the open offer by Titan Europe and Institutional Placement Programme, Wheels India said that the mandatory Open offer was made by Titan Europe Plc. along with Titan International Inc, the person acting in concert ('PAC') with the Acquirer to acquire equity shares of Rs 10 each of Wheels India Limited, in order to comply with the Sebi regulations consequent to the acquisition of shares by Titan International Inc., in Titan Europe Plc.
Pursuant to the above Open offer, Titan Europe acquired 574,170 equity shares of Rs 10 each in the Company. Consequent to this, the public shareholding in the company has been reduced to 8.57%.
"The Company has obtained the approval of the shareholders for raising equity capital for an amount not exceeding Rs 100crores. In addition to meeting the fresh capital requirements of the Company, the raising of the equity will also help the Company to meet the requirement of Sebi for listed companies to have Minimum Public Shareholding of at least 25%, said the company.
The Company is proposing to raise equity capital as stated above, subject to applicable statutory/regulatory requirements receipt of requisite approvals, market conditions and other considerations.
Wheels India is a leading manufacturer of steel wheels for passenger cars, utility vehicles, trucks, buses, agricultural tractors and construction equipment. The company has manufacturing plants at Padi, Pune, Rampur, Bawal, Sriperumbudur and Pantnagar with a combined overall annual capacity of 16 million wheels.
While over 80% of the company’s business comes from the domestic Indian market, the company exports wheels for off-road construction equipments and agricultural applications to Japan, Korea, US, Brazil, Belgium, South Africa, China and Indonesia.
Company’s Net Profit in 2012- 2013 stood at Rs 31.88 crore as compared to Rs 34.35 crore, a year ago.
Wheels India’s revenues for the year ended March 31, 2013 stood at Rs 1,927 crore as compared to Rs 2,080 crore registered during the year ended March 31 2012.
“The market for commercial vehicles in India and the global construction and mining equipment market slowed down significantly in the second half of the year, with a moderate slowdown in all other sectors. This is an opportunity for us to build our internal strength, not only to survive this slowdown phase, but also to build a foundation that will allow us to thrive when the sectors picks up again,” commented Ram.
