Wheels India plans to invest between ₹280 crore and ₹300 crore in capital expenditure during FY27 as the company sharpens focus on exports, windmill components, aluminium wheels and hydraulic cylinder businesses, Chairman and Managing Director Srivats Ram said during the company’s earnings call.
The company had spent around ₹261 crore on capex in the previous fiscal, largely towards the windmill business, aluminium wheels segment, off-road businesses, routine investments and cost optimisation initiatives.
Export push and wind energy focus
Wheels India said exports remain a key growth driver, particularly in construction equipment and agriculture tractor wheels. Exports accounted for 26% of total sales in FY26, up from 25% a year earlier despite strong domestic growth.
Srivats Ram said the company expects export growth to continue in FY27, with stronger momentum likely in FY28, subject to geopolitical stability.
The company has also ramped up investments in machining large castings and fabricated structures for windmills, including offshore windmill applications. The investments are expected to translate into business growth during the current fiscal.
Focus on internal accruals and efficiency
Wheels India highlighted that it has maintained stable-to-declining debt levels while improving debt-equity and debt-to-EBITDA ratios. The company said strong free cash flows and tighter working capital management have helped fund expansion largely through internal accruals.
The management said inventory and debtor levels have been substantially reduced over the last few years, helping improve cash generation and returns.
Srivats Ram said the company remains focused on long-term strategy execution, cost optimisation and operational efficiency while targeting double-digit growth over a five-year period.
Capacity expansion across segments
The company is expanding capacities selectively across businesses.
In passenger car steel wheels, combined capacity between Wheels India and its subsidiary currently stands at around 11 million to 12 million units annually and is expected to rise to nearly 14 million units.
In aluminium wheels, monthly production capacity is being increased from 42,000 units to 60,000 units initially and further to 80,000 units within the next six months. The company is also evaluating an expansion to 100,000-120,000 units next year.
Commercial vehicle wheel capacity is expected to rise from around 250,000 units to 300,000 units, while tractor wheel capacity could see a 10-15% increase mainly through productivity improvements.
Long-term consolidation plans
The company also indicated plans to gradually shift operations from rented facilities to owned manufacturing locations in a phased manner to improve scale efficiencies and operational consolidation.
On overseas expansion, Wheels India said it remains open to both greenfield and brownfield opportunities in the medium term, including potential acquisitions.