Chennai, May 21 (SocialNews.XYZ) Automotive major Wheels India Ltd plans to set up a new plant to make components for windmills and also expand the capacity of its cast aluminium wheels production at an outlay of Rs 100 crore this fiscal, said top company official.
"A good portion of the Rs. 100 crore capex will go into the wind segment where we will be setting up a new plant in Thervoy Kandigai near Chennai," Managing Director Srivats Ram told reporters here on Friday.
"In addition, we will also be investing a good portion into the second phase of the cast aluminum wheel plant there. We currently have built up capacity for 3.5 lakh wheels per annum and will be taking this up to 7.5 lakh wheels per annum," he added.
Ram also added that the capex spend also hinges on the Covid-19 pandemic situation in the country.
Meanwhile the company closed last fiscal with a revenue of about ARs.2,215.55 crore and a net profit of Rs.6.75 crore down from a revenue of Rs.2,438.72 crore and a net profit of about Rs.54.11 crore for FY20.
The Board has recommended a dividend of Re.1.00 per share.
"While the first quarter of last year was a washout due to the national lockdown, there was strong demand in the latter part of the year with a recovery in most of our business segments by the fourth quarter. While the domestic tractor business showed strong growth in the last three quarters, we saw growth in export business in H2," Ram said.
On the outlook for FY22, he said: "While we have strong export demand for products, the domestic business and to some extent execution of exports will depend on the state of lockdown in the regions where our plants are."
Wheels India rolls out wheels for trucks, buses, agricultural tractors, construction equipment, utility vehicles and passenger cars with manufacturing plants at Tamil Nadu, Maharashtra, Uttar Pradesh and Uttarakhand and a combined overall annual capacity of about 10.3 million wheels.
Over 50 per cent of the Company's business accrues from the manufacture of automotive wheels for commercial vehicles, agricultural tractors and cars while the balance comes from wheels/components for construction and mining equipment, air suspension for commercial vehicles and components for energy equipment and railway bogie frames.
Source: IANS
About Gopi
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz