Wheels India jumps 6% after tie-up with Japan's Topy for alloy wheels

Wheels India shares gained 6.2 per cent on the BSE, logging an intra-day high at ₹895.45 per share. At 10:34 AM, Wheels India's share price was trading 4.87 per cent higher at ₹884.05 per share on BSE. In comparison, the BSE Sensex was down 0.25 per cent at 85,057.09.

 

The company has a total market capitalisation of ₹2,160 crore. Its 52-week high was at ₹979.25, and its 52-week low was at ₹548.  

 

The buying interest on the counter came after the company inked a technical assistance agreement with Japan’s Topy Industries for the design, development and manufacture of aluminium alloy wheels.   FOLLOW STOCK MARKET UPDATES LIVE 

 

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

 

“Through this agreement, we are hoping to make fresh inroads into the Japanese original equipment manufacturers (OEMs) in India in the alloy wheel segment,” said Srivats Ram, MD, Wheels India. 

 

Srivats believes this agreement is expected to bring in considerable technical expertise in the aluminium wheel segment for Wheels India and will help the company win new businesses and bolster competitive advantage in the cast aluminium segment.

 

Further, the company informed that it is in the process of expanding the annual capacity at its alloy wheels plant in Thervoi Kandigai to seven lakh wheels per annum from the existing five lakh wheels per annum. This capacity expansion is expected to be completed by the end of the next quarter.  ALSO READ | Lumax Auto zooms 147% in CY2025; beats SmallCap index for 4th straight year 

The company is also planning to further expand its capacity to 10 lakh wheels per annum next year, and this expansion is expected to be completed by the end of FY27. Wheels India already has a joint venture (JV) with Topy for its steel wheels business through WIL Car Wheels Limited having a 74 per cent equity holding. This JV is focused on steel wheels for the Japanese OEMs in India. 

Additionally, the company has also bagged new orders for its aluminium wheels business from Hyundai and Volkswagen and expects to commence supplies next year.

 

Wheels India is a manufacturer of 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, with manufacturing plants in Tamil Nadu, Maharashtra, Uttar Pradesh and Uttarakhand.