Wheels India Ltd, a manufacturer of wheels for trucks, passenger vehicles, and construction equipment, aims to double its hydraulics business over the next two to three years, driven by promising export opportunities, according to Managing Director Srivats Ram.
Currently, the hydraulics segment contributes approximately ₹150 crore to the company’s revenue. Ram highlighted the company’s existing supply relationships with manufacturers in Europe and North America, expressing confidence in the growth potential of the hydraulics sector.
To support this expansion, Wheels India has committed ₹225 crore towards capital expenditure this year, focusing on enhancing its machining capabilities for windmill castings, agricultural wheels, cast aluminum wheels, and hydraulic cylinders. Ram stated that a significant portion of this investment would go towards increasing capacity in windmill castings, aluminum casting, and hydraulics, along with further investments in the Agri-Tractor segment.
For the July-September 2024 quarter, Wheels India reported a net profit of ₹21.92 crore, a substantial increase from ₹5.24 crore during the same period last year, which had been impacted by one-off expenses. The company’s revenue for the quarter was ₹1,085 crore, down from ₹1,189 crore a year ago. Over the six months ending September 30, 2024, net profits rose to ₹47.29 crore from ₹18.46 crore, while revenues were ₹2,174 crore, compared to ₹2,322 crore in the previous year.
Ram attributed the profit increase to a favorable product mix, particularly in windmill casting machining, along with productivity enhancements and effective cost control measures. He expressed optimism for maintaining this profit growth in the current year.
In the aluminum wheels segment, the company plans to ramp up production from 25,000 units to 40,000 units per month. Ram emphasized that expanding the product range is a long-term investment that is expected to yield benefits in the future.
Regarding exports, Wheels India saw a decline of ₹50 crore in overseas contributions, totaling ₹258 crore for the July-September 2024 period, compared to ₹307 crore the previous year. However, Ram anticipates a revival in exports in the fourth quarter and into the first quarter of the following year, noting that the company has gained market share in Europe despite lower volumes. He believes that as markets recover, Wheels India will be well-positioned to benefit from increased volumes.
Wheels India Limited is a leading manufacturer of steel wheels for a variety of vehicles, including commercial vehicles, passenger cars, and farm equipment, and is a key player in the Indian automotive component industry.
Established in 1968 and headquartered in Chennai, the company is known for its commitment to quality and innovation, producing a diverse range of products that meet global standards. Wheels India operates state-of-the-art manufacturing facilities equipped with advanced technology to ensure high precision and efficiency in its production processes.
The company has established strong relationships with major automobile manufacturers, both domestically and internationally, and is recognized for its ability to deliver customized solutions that enhance vehicle performance.
In addition to its focus on product excellence, Wheels India is committed to sustainability, implementing eco-friendly practices in its operations and striving to reduce its environmental impact. With a strong emphasis on research and development, the company continues to innovate, contributing to the growth of the automotive industry in India and reinforcing its position as a trusted partner in the global market.
