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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.
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