CHENNAI: TVS Group company Wheels India today said it has commenced supply of suspension parts to the Indian Railways for use in LHB (Linke Hofmann Busch) coaches.
The city based company also said it had plans to widen its customer base across the products it manufactures and reduce the cyclical impact of the segments it supplies to.
“Wheels India has started supplying bogie suspension parts for LHB coaches to the Integral Coach Factory. We plan to start supplies to other railway factories in the coming year and see a strong demand from Railways for the next two to three years”, company chairman S Ram said at the company’s 59th Annual General Meeting here.
The company,which also serves the construction and mining equipment sectors, hoped that the increased demand witnessed last year would continue in the coming years, Ram said.
On the forged aluminium wheels business, he said Wheels India was focused on export of forged aluminium wheels for trucks and trailors. “In the latter part of the year, we expect this business to show good growth after new capacities are in place”.
On the company’s upcoming factory in Gujarat, being set up in association with Japan-based TOPY Industries, company Managing Director Srivats Ram said “TOPY is the leading wheel manufacturer in Japan for the car industry”. “Being aligned with them, we get into new models that these Japanese manufacturers introduce in the country”, he said.
He said the company was also working with TOPY industries on export of wheels to South East Asia to serve their Japanese customers. On the company’s presence in the windmill industry, Ram said the domestic market for windmill business was seeing a recovery.
“Wheels India is also working with its customers for export of components”, he said. On the air suspension business, he said the company recorded a full year of production of lift axle systems for multi-axle vehicles in the 2017-18 fiscal. “With a move towards heavier duty vehicles, we expect this volume to grow in the coming year”, he said.
Wheels India’s JV starts operations in Gujarat
Wheels India’s joint venture company has started production of steel passenger car wheels at its new factory in Gujarat.
The new plant of WIL Car Wheels Ltd (WCWL), a 74:26 joint venture between Wheels India and Topy Industries, a leading Japanese car wheel manufacturer, has been built at an investment of ₹42 crore at Vanod, Gujarat.
The new unit, which has already completed trial production, will have the capacity to manufacture 1.5 million passenger car steel wheels a year. The factory will employ about 120 people initially.
Last year, Wheels India — a TVS group company — hived off its passenger car wheel business servicing multinational car companies into a separate subsidiary and made it into a 74:26 joint venture with Topy.
It is expected that the Japanese partner will leverage its relationship with global car companies and its technology to help grow Wheels India’s car wheel business in India and open export opportunities for WCWL. In FY18, WIL Car Wheels Ltd reported a gross revenue of ₹179.42 crore and profit before tax of ₹2.34 crore, according to a company statement.
Q1 PAT up 38%
Wheels India has reported a 38 per cent rise in net profit at ₹18.01 crore for the first quarter ended June 30, 2018 when compared with ₹12.98 crore in the year-ago period, on the back strong topline growth.
Revenues grew 22 per cent at ₹746 crore against ₹611 crore, aided by robust demand across auto segments.
“All our business segments have done well in the first quarter with high capacity utilisation. The growth was strong on a year-on-year basis due to a weak Q1 in the previous year, prior to the introduction of GST,” said Srivats Ram, MD, Wheels India Ltd.