Chennai, Aug 14: “There was reasonable growth in light and small commercial vehicles and utility vehicles in the last financial year. It is hoped that after a normal monsoon, the sentiment in the rural markets will improve and thereby demand for these vehicles will sustain,” chairman Wheels India Ltd, S Ram, C told shareholders at 60th AGM of company held in the city.
Ram said that the company expects to start production of cast aluminum wheels for export markets from a new plant near Chennai, investing around Rs 140crores. The company has also been investing in the modernization of its plants and expects this to yield results in the future.
R&D Testing Facility
On the setting up of a R&D testing facility, MD, Wheels India Ltd, Srivats Ram, said “We have set up a state of the art world class R&D testing facility at the Padi plant in Chennai where we will also now offer product testing services to companies in addition to testing the products that we manufacture.”
Good Growth in non automotive segments
On the growth prospects, Wheels India Chairman Ram said that the company saw a strong growth in the windmill segment in the domestic market in India. The growth in the company’s windmill component business is likely to continue this year, with reasonable demand from the existing customers and with new export business coming on-stream.
Ram said that there was also a strong demand for air suspension systems for buses for state transport undertakings and private players in 2018-19.
Ram also said that the company registered a strong growth in demand last year for its products in international markets with exports reaching Rs 610 crores, with strong contribution from construction wheels and forged aluminum wheels. Facebook, Twitter, Snapchat and Instagram”, he further added.