Wheels India to open subsidiaries in US, Europe

Leading Chennai-based wheels and auto component maker Wheels India, on Wednesday, said it plans to open wholly -owned subsidiaries in the US and Europe for business development and sales coordination as the company sees businesses in these geographies growing in the future.  

In a post-result interaction, Srivats Ram, MD, Wheels India said that the subsidiaries are likely to be opened by December 2023 with small teams. “The company is looking at potential new business in Europe in the first quarter of the next year and that is the reason for having people on the ground,” he said. The expansion in the US and Europe will be in the off-load business in construction and agri tractor segments, he said. 

The firm posted a net profit of Rs 5.24 crore for the July-September quarter compared to Rs 14.53 crore in the corresponding quarter of the previous year. One-off expenses, notably a one-off charge for pre-delivery inspection charges, hit the company’s profit. Revenues grew 7.7% to Rs 1,189 crore compared to Rs 1,104 crore in the year-ago quarter. “The revenue growth was driven by exports with growth in Asian markets offsetting the slowdown in Europe,” said Ram. 

Wheels India spent a capex of Rs 72 crore in the first half and is planning a capex of Rs 80 crore in the second half of the business year as they expect the business to gain traction. "Going forward, we expect capex to pick up steam,” said Ram. 

On the outlook for the second half, he said “We expect to see export growth in the full year, despite slowdown in Europe. On the domestic front, we expect to see growth in the CV and air suspension markets for the balance of the year. Overall, while Q3 may be muted, we expect Q4 to be stronger.” 

He also pointed out that the company is looking to increase the renewable energy in its basket from 26% currently to about 75% by 2026.  

Wheels India, which makes 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, has manufacturing plants at Tamil Nadu, Maharashtra, Uttar Pradesh and Uttarakhand. It is a part of the TSF group, which comprises the T.S. Santhanam branch of the erstwhile TVS Group. 

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