Chennai Aug 13 : Wheels India Limited is setting up a new plant near Chennai with an investment of about Rs 140 crore to manufacture cast aluminium wheels for export market.
Addressing the shareholders at the company's 60th AGM here on Tuesday, Wheels India MD Srivats Ram said the company expects to start production of Cast Aluminum Wheels for export markets from the new plant.
The company has also been investing in the modernization of its plants and expects this to yield results in the future.On the setting up of an R and D testing facility, he said “we have set up a state-of-the-art world class R and D testing facility at the Padi
plant in Chennai where we will also now offer product testing services to companies in addition to testing the products that we manufacture.''
''We are also continuously working on patents for our products and believe that this will give us a significant competitive edge in the market, going forward'', he added.Pointing out there was a reasonable growth in light and small commercial
vehicles and utility vehicles in the last fiscal, he hoped that after a normal
monsoon, the sentiment in the rural markets would improve and the demand
for these vehicles would sustain.
On the growth prospects, Mr Ram said the company saw a strong growth in
the windmill segment in the domestic market.''The growth in the company’s windmill component business is likely to continue this year, with reasonable demand from existing customers and with new export business coming on stream'', he added.
Stating that Wheels India has established itself as a leading supplier of bogie
frames for the Indian Railways, he said this business was likely to grow in the
Mr Ram said there was also a strong demand for air suspension systems for
buses for state transport undertakings and private players in 2018-19 and this
trend was expected to continue this year.
On the exports market, he said the company registered a strong growth in
demand last year for its products in international markets with the exports
reaching Rs 610 crores, with strong contribution from construction wheels
and forged aluminum wheels.
On the outlook, Mr Ram said “this is a challenging year in terms of demand
with a slowdown in major customer industry segments such as commercial
vehicles, construction equipment and mining trucks.''''We will focus, internally, on reducing costs and rationalizing operations in the light of these challenges'', he added.(UNI)