SSWL bags 110,000 wheel export order from Russian aftermarket

Steel Strips Wheels Ltd (SSWL), the Punjab-based automotive steel wheel manufacturer, has bagged an export order to supply 110,000 wheels to the Russian passenger car aftermarket. The company claims the worth of the order is around Rs 6.04 crore. In its filing with Bombay Stock Exchange (BSE), SSWL says it will execute the order starting from November this year.

The steel wheel maker has already successfully executed an order of 38,000 wheels earlier this year for the Russian aftermarket. The company has been strengthening its foothold in Russia and other European markets like France. The company claims that this new order to be a precursor of more volume orders in the coming months and expects to supply a minimum of 150,000 wheels annually to the Russian aftermarket.

SSWL, which is already an exclusive OEM supplier to Renault Russia for the Duster SUV, won a Rs 12.21 crore export order in May 2014 for the supply of 150,000 wheel rims to Peugeot France.

According to latest available figures, SSWL achieved its highest ever wheel sales in August 20014, when it sold 11,60,000 units of wheel rims compared to 9,71,000 units in the same period a year ago. In value terms, the company achieved 11 percent growth in net turnover at Rs 102.55 crore, up from Rs 99.55 crore in the same month previous year.

On a year-on-year basis, SSWL’s sales in August 2014 were up by 37 percent in the two- and three-wheeler segments while it posted a 29 percent growth in the passenger car sector. Export volumes though were down 15 percent, which the company says was on account of extended holiday season in Europe. However, SSWL says its export business is robust and the order book is looking healthy, going forward.

The company’s product range comprises steel wheels for two- and three-wheelers, passenger cars, MUVs, tractors and trucks. It has three production facilities across the country which produce passenger car wheels in Dappar (Punjab) and Oragadam (Chennai) and truck wheels in Jamshedpur (Jharkhand). The company’s existing manufacturing capacity is a total of 17 million wheels per annum comprising of nine million wheels in Dappar, six million wheels in Oragadam and two million truck wheels in Jamshedpur.