Wheels India Ltd, a TVS group company and a significant player in the auto components sector, has stepped up its capital expenditure for the current year.
Addressing a virtual press conference on Friday, managing director Srivats Ram said the company’s board had approved an increase in the capital investment to the tune of Rs 37 crore. At the beginning of the year, the company had planned a capital expenditure of Rs 99 crore.
The hike in capex was needed to raise capacity to meet rising global demand in the construction equipment and windmill segments, he added.
Answering questions, Ram said that the second quarter had seen a return to normality. “There was reasonable volume in all the segments. Exports have been particularly strong with construction equipment, windmill and agriculture tractors doing well,” he said. He expected this strong showing in exports to continue.“We have seen six continuous quarters of growth in exports,” he added.
He said the commercial vehicles segment was showing signs of life. “There is definitely some improvement in LCV (light commercial vehicles) and ICV (intermediate commercial vehicles) segments and the overall prospects are broadly good,” he said.
Exports comprised 25 percent of sales for the quarter.
“Export schedules are not affected by the semiconductor shortages as the segments the company serves are not affected by this,” Ram said.Wheels India has manufacturing plants in Tamil Nadu, Maharashtra, Uttar Pradesh and Uttarakhand. It has a combined overall annual capacity of 10.3 million wheels. Over 50% of the company’s business accrues from the manufacture of automotive wheels for commercial vehicles, tractors and cars while the balance comes from wheels/components for construction and mining equipment, air suspension for commercial vehicles, components for energy equipment and railway bogie frames.