Wheels India: Hydraulic Cylinder Business Grows Post Merger

Chennai, Jul 17 (PTI) The hydraulic cylinder business of steel wheels manufacturer Wheels India has grown reasonably and become profitable following its merger with Sundaram Hydraulics, a top official said on Wednesday.
The business from this segment is expected to grow further going forward, Wheels India Ltd Chairman S Ram said at the 65th annual general meeting here.
In 2021, Wheels India Ltd agreed to acquire Sundaram Hydraulics Ltd. Post acquisition, Sundaram Hydraulics would merge with Wheels India Ltd.

Following the merger, in FY'24 the hydraulic cylinder business has grown reasonably and become profitable, he said.

The medium and heavy commercial market showed a marginal growth in FY'24 and there was a significant shift away from multi-axle vehicles towards tractor trailers, Ram said addressing shareholders virtually.

On ramping up of "machining large windmill castings", he said, "While the demand for windmill components was muted in FY'24, we were able to ramp up production at our plant machining large windmill castings. The plant is now a profitable business that we hope to grow in line with our casting partner."

On the exports front, the chairman said the business from the overseas markets grew considerably in FY'24 with 24.5 per cent driven by export of earthmover and aluminium wheels.

The company has incorporated a subsidiary in the United States and intends to form a subsidiary in Europe to give a further thrust to business development.

Responding to a query from a shareholder, Wheels India MD Srivats Ram said the bottom line would improve this year thanks to the product mix and efforts taken by the company.

On capital expenditure, he remarked that the company has allotted Rs 225 crore towards capital expenditure this financial year.

Production of aluminium wheels is also expected to grow to 40,000 wheels a month from the current 25,000 wheels this year, he said.

For the year ending March 31, 2024 Wheels India registered a net profit of Rs 68 crore and recorded revenues of Rs 4,619 crore.