Wheels India, the TVS Group promoted company in ‘60s, is planning to invest around Rs 65 crore over the next two years. The company also set a target to grow by 28 per cent during the current fiscal to Rs 1,600 crore.
Speaking to Business Standard on the sidelines of an event, in Chennai, Srivats
Ram, managing director, Wheels India Ltd said the company will invest around Rs 45 crore during the present fiscal in the existing plants to increase capacity across its seven plants. Besides, the company also approval from the board to invest Rs 20 crore during the next fiscal.
The passenger car lines at Northern India plants will be increased to 15 million wheels from 12 million wheels by end of March next year. Similarly tractor wheels capacity will be increased by 20 per cent.
Wheels India is a leading manufacturer of steel wheels for passenger cars, utility vehicles, trucks, buses, agricultural tractors and construction equipment in India to both domestic and international customers. “Wheel-busines, we will be de-bottlenecking our major lines to meet the increased demand in the coming year,” said Ram.
“In the last four years the company has invested around Rs 300 crore, which helped the company to meet the increase in demand,” said Srivats Ram.
“Due to global recession, the year under review saw steep fall in company’s exports for wheels for construction and mining equipment,” said S Ram, chairman, Wheels India ltd. The present year is seeing revival of markets especially for mining equipment wheels.
Srivats Ram added, company’s exports dropped to Rs 116 crore from Rs 220 crore, “we will go back to the previous level this year,” he said.
Ram added, major segment of company’s business (wheels to commercial vehicles) continued at the low level demand in the first quarter of the year under review. With the support extended by the Government through reduction in excise duty and easy availability of credit helped the commercial vehicles segment grow from the second quarter.
“Company saw high growth from government support for State Transport Undertakings. Availability of loans from the Central government to the STUs, appears to be unlikely in the present year.”
Srivats Ram added, the company order through the scheme was Rs 150 crore which has come down by 50 per cent now.
He added, the company has commenced manufacturing and supply of steel structurals for power plants from March 2010. In 2011, the output from this unit is expected to gradually improve and reach break-even by middle of the year.
“During the present year it would bring around Rs 25-30 crore, we are planning to double it by next,” he added.
