Wheels India Unveils ₹225 Crore Capex Plan for FY25

Wheels India has announced a ₹225 crore capital expenditure for this fiscal year to boost capacity across key product segments. The plan includes ramping up production of aluminum wheels, earthmoving wheels, tractor wheels, and hydraulic cylinders. Chairman S Ram revealed during the 65th Annual General Meeting that aluminum wheel capacity will rise from 25,000 to 40,000 wheels per month.

The company witnessed strong growth in the construction equipment sector in FY24, with volumes up for most customers. The merger of Sundaram Hydraulics Ltd. with Wheels India bolstered the hydraulic cylinder business, making it profitable. This segment is expected to continue growing, contributing significantly to the company’s performance.

In the non-auto sector, Wheels India faced muted demand for windmill components but managed to make its large windmill castings plant profitable. The plant’s growth is set to continue in partnership with a casting supplier, positioning Wheels India for future expansion.

Exports surged by 24.5% in FY24, driven by earthmover and aluminum wheel sales. The company is establishing subsidiaries in the US and Europe to capitalize on new export opportunities with global tractor manufacturers, aiming for further international growth.

Managing Director Srivats Ram expressed optimism about FY25, predicting improved profitability due to a diversified product mix. Despite flat commercial vehicle market expectations, Wheels India anticipates strong bus demand and increased volumes from a major Indian vehicle manufacturer, which should help achieve breakeven in the cast aluminum business.

News by Rahul Yelligetti