Chennai : Wheels India will be investing in CapEx of Rs.155 crores this year, Company MD Srivats Ram said. Talking to reporters here, he said a part of CapEX will go into the expansion of Construction Equipment business and Aluminum Wheels. The company has already invested Rs.75 crore in a new plant in Thervoy Kandigai for machining of large wind turbine castings. This year the company will invest an additional Rs.25 crore in that plant, he added. Srivats said We are investing because we are seeing clear opportunities and there is customer demand on hand.
We have benefitted from China derisking strategy of global companies with CastvAluminum business being an opportunity arising out of that. But we are also expanding business with existing customers, he said. On the exports market, Srivats said there is strong demand from Japan, Korea, Europe and North America.
He said with the exit of the JV partner two years ago, the restrictions on expanding into segments and geographies have been removed and that the company has been aggressively foraying into newer segments and geographies that they could not earlier. The fact that we have invested well over Rs. 150crores in the Cast Aluminum plant in the last year or two and our current investment of Rs.100crores in the new plant for machining of large wind turbine castings shows that we are making large investments and that we are optimistic about growth in these new areas from zero base, he added.