Leading wheel manufacturer to tap new business frontiers while advancing renewable energy goals and strengthening financial performance.
Published Nov 02, 2023 | 1:11 PM ⚊ Updated Nov 02, 2023 | 1:11 PM
Wheels India anticipates entering the European market in the first quarter of the coming year. (iStock)
Chennai-based Wheels India is embarking on a significant expansion strategy by establishing wholly-owned subsidiaries in the United States and Europe.
The company’s desire to explore new business opportunities in these regions drives the move. Notably, the focus will be on the off-load business in the construction and agri-tractor segments.
According to Wheels India MD Srivats Ram, the company anticipates entering the European market in the first quarter of the coming year.
In line, the company is taking steps to have a local presence in the United States and Europe. This will allow them to facilitate business development and sales coordination.
Additionally, Wheels India is making strides in its commitment to renewable energy. The company plans to increase its renewable energy usage from 26 per cent to 75 per cent by 2026.
Despite a European slowdown, Wheels India’s Q3 revenues surged to ₹1,189 crore, up from ₹1,104 crore last year.
The company allocated ₹250 crore for capital expenditure this year. (Supplied)
In the first half of 2023, company revenues reached ₹2,322 crore, a jump from ₹2,154 crore in the previous year, driven by Asian export growth.
The company allocated ₹250 crore for capital expenditure this year, with ₹72 crore spent in H1 and an anticipated ₹80 crore expenditure in the upcoming quarters.
This capital expenditure will be directed towards enhancing capacity, process improvements and expanding the machining facility.
“The subsidiaries in the US and Europe will comprise 2-3 members, each, and it is more of business developments and sales coordination,” he said.
Looking ahead, Wheels India expects export growth for the full year, despite the European slowdown.
“On the domestic front, we expect to see growth in the commercial vehicles and air suspension markets for the balance of the year,” he said.
“Overall, while Q3 may be muted, we expect Q4 to be stronger,” he added.
