TVS Group firm Wheels India is looking at developing products for the mining sector and may foray into this segment by next year, a top official said.
"We are looking to develop some products in the sub segment in the mining space. For example, in the under-ground mining segment. It is a global segment and this is a new segment we are looking at exploring. This could happen next year," Wheels India Managing Director Srivats Ram told reporters.
The Chennai-based company currently manufactures steel wheels for passenger cars, utility vehicles, trucks, buses, tractors and construction equipment.
"Truck and renewables are two segments that are currently growing. We have a small play in the energy components segment in renewable space and we are seeing growth here," he said.
The company early this year announced its plan to manufacture motorcycle wheels and was holding discussion with OEMs.
"We could start supplying for one customer in two-wheeler segment in the second half of the year," he said.
On exports market in the passenger car segment, he said, "We are looking to make some progress in passenger car segment in APAC region. This could happen in next year".
On the growth targets for the 2015-16, he said, "We could see a noticeable single digit top line growth this year. Bottom line could see a double digit growth this year as the second half may not be as bad as last year."
About company's capital expenditure plans, he said, "We are investing Rs 75-80 crore this year. Out of this, one third will go towards new product development."
Wheels India reported second quarter net profits of Rs 9.27 crore as compared to Rs 9.51 crore registered during the corresponding period a year ago.
Net profits for the half year period ending September 30, 2015 stood at Rs 17.04 crore as against Rs 17.32 crore registered during year ago period.
"The recovery of the CV market has offset the decline in agricultural tractor and off-road export markets. The truck and car market is expected to grow in second half (of current financial year). At the same time, domestic and global agricultural, construction and mining markets are likely to contract from current levels due to low commodity prices," he said.
The company has begun manufacturing lift-air suspension for multi-axle trucks, he said.
"We expect this new business along with bus air suspension business to grow in second half", he said.
