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Wheels India Ltd, an automotive wheel manufacturer, is depending on the export market to sustain its growth.
The company’s investments of ₹80-85 crore in the current year will focus on exports including capacity additions in aluminium-forged wheel production, other export-oriented products and expansion into allied products that are in demand in the domestic markets, according to Srivats Ram, Managing Director, of the TVS group company.
Capacity additionAbout 40 per cent of the proposed investments will be in capacity addition of forged-aluminium wheels, which are exported to the US and Europe.
The production is about 60,000 units now and will increased to about 1 lakh, he said.
Wheels India hopes to sustain exports at about 20 per cent of its business.
On the domestic front there is some year-on-year growth in commercial vehicles segment, primarily buses. This is driving demand for air suspension products. The company will start production of an associated product, lift axles, from January for which it has entered into a technical tie up with EGE Endustri, Turkey.
For the second quarter that ended September 30, 2014, the company reported a growth in net profit over that of the comparable quarter in the previous year to ₹9.51 crore (₹8.73 crore) on an income of ₹469.83 crore (₹424 crore).
Cost increases driven by materials and power are a concern, he said.
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