With an eye on catching a piece of action in growing geographies, Chennai-based Wheels India, a well-known name in the field of auto components, has decided to set up fully-owned subsidiaries in the US and Europe.
According to Srivats Ram, Managing Director, Wheels India, the emerging business potential in the US and Europe is 'giving us the reason for having people on the ground.”
The expansion would primarily look at offload business in construction and agri tractor segments. Wheels India is a leading manufacturer of wheels for trucks, agricultural tractors, passenger vehicles and
construction equipment. It also makes air suspension systems for trucks and buses and produces industrial components for the construction and windmill industries. It has manufacturing plants in Tamil Nadu, Maharashtra, Uttar Pradesh and Uttarakhand.
The company has invested INR 72 crore in capital expenditure during the first half. 'We are planning a capex of around INR 80 crore in the second half of the year as we see business gaining traction in the second half,' Ram said. 'Going forward, we expect capex to pick up steam', he noted, adding that it will go towards expanding cast aluminium capacity, process improvements in the steel wheels business and expanding the facility for machining in the windmill business. He expected volumes in the windmill business to pick up in the second half.
'We have started supplying aluminum wheels to the first OEM and the production has more than doubled to around 24,000 per month when compared to the same period last year. We expect the second OEM in the cast aluminium segment in the first quarter of next year,' he added.
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