Wheels India, part of the TVS Group that manufacture steel wheels, is planning to invest around Rs 70 crore in 2015-16 towards capital expenditure.
Srivats Ram, managing director, Wheels India, said 25 per cent of the money would be towards automation and process changing and the balance would go into new product developments and capacity expansion in fore aluminum and in non-wheels business.
The company, which reported a growth of nine per cent in revenue to Rs 1,980 crore in 2014-15, expects to grow in single digit. However, it hopes the bottomline would be better in 2015-16 and this would be achieved through product mix change and cost cutting measures.
“We are contemplating to get into two-wheeler (supplying components to two-wheeler),” said Ram. He added the company was in advanced talks with OEMs.
It is also betting big on non-wheel business, which accounts for around 11 per cent. In 2015-16 company is targeting to increase it to 13 per cent. Company's core business is manufacturing of steel wheels. Non-core business includes components for thermal and wind energy, and air-based suspension systems, among others.
Net profit for the fourth quarter ended March 31, 2015 was Rs 6.6 crore as against Rs 8.8 crore, a year ago. Revenue rose by 3 per cent to Rs 499 crore from Rs 485 crore.
The company's after-market business, which it launched a few years ago under the brand 'WILGO', has reached Rs 50 crore in revenue.
"In couple of years after-market (business) will reach around Rs 100 crore," said Ram.
