Wheels India climbs on technical assistance agreement for alloy wheel business

Wheels India jumped 4.15% to Rs 878 after the company has signed a technical assistance agreement with Tokyo, Japan headquartered Topy Industries for the design, development and manufacture of aluminium alloy wheels.

As part of this agreement, Topy Industries will provide technical knowhow and engineering support to enhance Wheels India's design and manufacturing capabilities for the cast aluminium wheel business.

The company is currently in the process of expanding the annual capacity at its alloy wheels plant in Thervoi Kandigai to 7 lakh wheels per annum from the existing 5 lakh wheels per annum. This capacity expansion is expected to be completed by the end of the next quarter. Wheels India also plans to further ramp up capacity to 10 lakh wheels per annum next year and this expansion is expected to be completed by the end of FY27.

Wheels India had forayed into the alloy wheel business in FY21 with a state -of- the-art facility at Thervoy Kandigai on the outskirts of Chennai. Initially focused on exports to the US and European aftermarket, the company has since turned its attention to the domestic market and has begun supplying alloy wheels to Indian OEMs such as Tata Motors and Stellantis. The company has also bagged new orders for its aluminium wheels business from Hyundai & Volkswagen and expects to commence supplies next year.

Wheels India already has a JV with Topy for its steel wheels business through WIL Car Wheels having a 74% equity holding. This JV is focused on steel wheels for the Japanese OEMs in India.

Srivats Ram, MD, Wheels India said, Topy Industries is an over 100 year old globally renowned wheel manufacturer. They are a leading manufacturer of aluminium wheels with evolved cutting-edge technologies. This agreement is expected to bring in considerable technical expertise in the aluminium wheel segment for Wheels India. We are confident that this agreement will also help us win new businesses and bolster our competitive advantage in the cast aluminium segment. Through this agreement, we are hoping to make fresh inroads into the Japanese OEMs in India in the alloy wheel segment.

Wheels India manufactures wheels for trucks, tractors, passenger vehicles and construction equipment, as well as air suspension systems and industrial components for the construction and windmill industries. It operates manufacturing plants across Tamil Nadu, Maharashtra, Uttar Pradesh and Uttarakhand.

The companys consolidated net profit jumped 29.1% to Rs 30.99 crore on 7.4% increase in net sales to Rs 1,263.97 crore in Q2 FY26 over Q2 FY25.

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