Wheels India plans wholly-owned arms in US, Europe to tap growth potential

Wheels India is a leading manufacturer of wheels for trucks, agricultural tractors, passenger vehicles, and construction equipment.

Chennai-based Wheels India has decided to set up wholly-owned subsidiaries in the US and Europe for business development and sales coordination as it sees businesses in these geographies growing.

"We are looking at a potential new business in Europe in the first quarter of next year, and that is the reason for having people on the ground,” said Srivats Ram, Managing Director (MD), Wheels India.

In response to a query, he said the expansion in the US and Europe would be in the off-load business in the construction and agri-tractors segments.
Wheels India is a part of the Trichur Santhanam Family (TSF) group. The TSF group came into being after the four constituents that formed the larger TVS family chose to legally go their separate ways a couple of years ago.

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

According to Ram, Wheels India is also looking to increase the renewable energy in its basket to about 75 percent by 2026 from 26 percent currently. He expects the export momentum to be maintained in the second half of the year and expressed optimism that the fourth quarter (Q4) will be stronger.

The company has invested Rs 72 crore in capital expenditure during the first half. "We are planning a capex of around Rs 80 crore in the second half of the year as we see business gaining traction in H2," Ram said. "Going forward, we expect capex to pick up steam,” he added.

Capex will expand cast aluminium capacity, make process improvements in the steel wheels business, and expand the facility for machining in the windmill business. He expects volumes in the windmill business to pick up in the second half.

"We have started supplying aluminium wheels to the first OEM (original equipment manufacturer), and production has more than doubled to around 24,000 per month compared to the same period last year. We expect the second OEM in the cast aluminium segment in the first quarter of next year," he said.

With its heritage dating back to 1936, the TSF group’s interests span the automotive and financial services sectors. Companies promoted by the TSF group have a combined revenue of more than Rs 21,000 crore and employ 42,000 people.

In the automotive industry, the TSF group operates across segments -- from component manufacturing to parts distribution and vehicle dealerships. It is also present in vehicle financing. In financial services, the TSF Group-promoted Sundaram Finance (founded in 1954) is a well-known brand name in the NBFC sector.