Wheels India signs technical agreement with Japan's Topy Industries

Wheels India has signed a Technical Assistance Agreement with Tokyo, Japan headquartered Topy Industries for the design, development and manufacture of aluminium alloy wheels. As part of this agreement, Topy will provide technical knowhow and engineering support to enhance Wheels India's design and manufacturing capabilities for the cast aluminium wheel business.

New Orders in the Domestic market

Wheels India had forayed into the alloy wheel business in FY21 with a state -of- the-art facility at Thervoy Kandigai in the outskirts of Chennai. Having started off initially by exporting alloy wheels to the US and European after-market, the company is now targeting the domestic market and has commenced supplies to Indian OEMs such as Tata Motors and Stellantis.

The company has also bagged new orders for its aluminium wheels business from Hyundai & Volkswagen and expects to commence supplies next year.

Commenting on the Japanese agreement, Srivats Ram, MD, Wheels India said, "Topy Industries is an over 100 year old globally renowned wheel manufacturer. They are a leading manufacturer of aluminium wheels with evolved cutting-edge technologies. This agreement is expected to bring in considerable technical expertise in the aluminium wheel segment for Wheels India. We are confident that this agreement will also help us win new businesses and bolster our competitive advantage in the cast aluminium segment."

Targeting Japanese OEMs in India

On new opportunities in the Aluminium Wheels segment, Srivats said, "Through this agreement, we are hoping to make fresh inroads into the Japanese OEMs in India in the alloy wheel segment."

Expanding Capacity next quarter

Wheels India is currently in the process of expanding the annual capacity at its alloy wheels plant in Thervoi Kandigai to 7 lakh wheels per annum from the existing 5 lakh wheels per annum. This capacity expansion is expected to be completed by the end of the next quarter.

Further capacity expansion in FY27

Buoyed by the prospects in the aluminium wheels segment, the company is planning to further expand its capacity to 10 lakh wheels per annum next year and this expansion is expected to be completed by the end of FY27.

Wheels India already has a JV with Topy for its steel wheels business through WIL Car Wheels Limited having a 74% equity holding. This JV is focused on steel wheels for the Japanese OEMs in India.

Wheels India is a leading manufacturer of wheels for trucks, agricultural tractors, passenger vehicles and construction equipment; air suspension systems for trucks and buses, and industrial components for the construction and windmill industry with manufacturing plants in Tamil Nadu, Maharashtra, Uttar Pradesh and Uttarakhand.

Shares of Wheels India Limited was last trading in BSE at Rs. 896.50 as compared to the previous close of Rs. 843.00. The total number of shares traded during the day was 5870 in over 495 trades.

The stock hit an intraday high of Rs. 909.70 and intraday low of 838.15. The net turnover during the day was Rs. 5221639.00.

Source : Equity Bulls

Keywords

WheelsIndia INE715A01015 AutoPartsandEquipment TechnicalAgreement TopyIndustrie Japan