Wheels India Limited, a prominent TVS Group Company established in the early 1960s, is engaged in the manufacture and sale of automotive and industrial components in India and internationally. The company is among the world's largest manufacturers of steel, aluminum, and wire wheels, supplying them for a diverse range of vehicles including passenger and light cargo vehicles, trucks, trailers, buses, agriculture and farm equipment, off-road vehicles, and defense vehicles.
Since its inception in 1960, Wheels India has consistently enhanced its engineering capabilities, building and delivering world-class products. It has grown into a leading manufacturer of steel wheels for passenger cars, utility vehicles, trucks, buses, agricultural tractors, and construction equipment in India. The company supplies approximately two-thirds of the domestic market requirement and exports 15% of its turnover to North America, Europe, Asia Pacific, and South Africa.
Wheels India operates through multiple diversified business divisions. Its comprehensive product portfolio includes:
- Automotive Wheels Division: Covers steel, cast aluminum, forged aluminum, and wire wheels for cars, trucks, and tractors.
- Construction Equipment Division: Provides wheels, fabrications, and hydraulic cylinders for construction, mining, and other heavy equipment.
- Energy Products Division: Focused on components for the wind turbine sector and railways (e.g., bogie frames and bolsters).
- Air Suspension & Lift Axle Division: Offers vehicle chassis and suspensions.
- Fabricated and Precision Products: Custom-fabricated assemblies and precision components for various applications.
The company has strategically diversified its operations beyond traditional wheel manufacturing to offer bus and truck chassis, suspension products, hydraulic cylinders, custom-fabricated assemblies, and precision components for wind turbines. It also provides components and structures for windmills, railways, and thermal power plants. Additionally, its subsidiary, WCWL, manufactures steel wheels for light passenger vehicles.
Wheels India manufactures wheels in technical and financial collaboration with Dunlop Holdings, UK (which holds a 35.91% equity stake). The company has significantly expanded its manufacturing footprint over the years.
Key Manufacturing Milestones:
- 2005-2006: Production capacity for wheels expanded from 7,064,000 units to 7,100,000 units.
- 2006: Started production at its Bawal Plant in Haryana.
- 2007: Opened the Sriperumbudur Plant in Tamil Nadu.
- 2009: Opened the Pantnagar Plant in Uttarakhand.
- 2010: Opened a renewable energy components plant in Irungattukottai, Tamil Nadu.
- 2012: Opened a fabrication plant at Namachivayapuram, Tamil Nadu.
Currently, the company operates plants in Rampur (Uttar Pradesh), Chennai and Kancheepuram (Tamil Nadu), and Pune (Maharashtra). This widespread manufacturing network enables the company to meet two-thirds of the Indian market requirement and export 15% of its turnover to North America, Europe, Asia Pacific, and South Africa.
- Market Capitalization: ₹1,940 Crore (as of recent data)
- Promoter Holding: 58.3%
- P/E Ratio: 17.36
- P/B Ratio: 2.07
- Dividend Yield: 1.43%
- ROCE: 16.1%
- ROE: 12.7%
- Annual Net Profit (FY25): ₹105.9 Crore (56% increase from ₹67.9 Crore in FY24).
- Annual Revenue (FY25): ₹4,425 Crore (compared to ₹4,619 Crore in FY24).
- Q4 FY25 Net Profit: ₹36 Crore (compared to ₹36.8 Crore in Q4 FY24, a decline of 0.70% from Q3 FY25).
- Q4 FY25 Revenue: ₹1,195 Crore (a 2.4% increase from ₹1,167 Crore in Q4 FY24; a 0.45% increase from Q3 FY25).
The company's recent quarterly results show mixed performance, with a slight decline in net profit compared to the previous quarter but a rise in sales.
Wheels India has ambitious plans for future growth and expansion.
- Capex for FY26: The company plans a capital expenditure of ₹250 Crore for FY26, with a focus on windmill components and cast aluminum wheels.
- Management Guidance: Management has provided positive guidance for future growth, particularly in export markets and specialized product segments.
- Cost Control and Product Mix: Srivats Ram, MD, Wheels India, highlighted that "Our focus on cost control measures, a favourable product mix and lower commodity prices led to a strong profit growth in FY25 and we were able to cross Rs 100 Crore of net profits last year."
- Dividend Recommendation: On May 20, 2025, the Board of Directors recommended a final dividend of ₹7.03 per equity share (70.3%), subject to shareholder approval.
- Strategic Investment: Wheels India is set to acquire a 3% stake in Axles India for ₹22.68 Crore by August 2025, raising its total holding to 12.51%. This strategic investment demonstrates the company's commitment to expanding its presence in the automotive components ecosystem.
Wheels India Limited continues to maintain its position as a leading manufacturer in the automotive wheels and components sector, with a strong focus on export growth, technological advancement, and diversification into emerging segments like renewable energy components. The company's consistent dividend policy and strong balance sheet position it well for future growth opportunities in both domestic and international markets.
