Chennai: Car wheels maker WIL Car Wheels Ltd a 74:26 joint venture between Wheels India Ltd and Japanese Topy Industries will be investing Rs 42 crore for a new plant in Gujarat, said a top official of Wheels India.
The company will be setting up a 1.5 million passenger car steel wheels plant at Vanod in Gujarat and ground-breaking ceremony for the new factory was completed recently, the official said.
Speaking about the new plant to reporters here on Monday, Managing Director Srivats Ram said he was confident of soon pushing the new plant to full capacity.
Announcing the half-yearly results of the Wheels India, Ram said the capacity utilisation at the company’s plants had gone up well, indicating strong demand across its business segments.
“Sale of wheels to construction equipment and agricultural tractor manufacturers have driven growth in the first-half of the year. The exports business improved during the first-half of the year on the back of growth in the mining segment. The ‘one time’ profit on slump sale of the passenger car steel wheel business has also contributed to the growth in profits,” Ram said.
“We are very positive on tractors, construction equipment and passenger cars business for the second-half,” he said.
Wheels India closed the first half of the current fiscal with a net profit of Rs 38.48 crore as compared to Rs 27.05 crore registered in the corresponding period last year.
During the period under review, the company earned a revenue of Rs 1,172 crore up from Rs 1,081 crore posted in the corresponding period last year.
IANS