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Steel Strips Wheel expects to reach 75% of pre-COVID-19 levels of production by September

The company has three production facilities in Punjab, Chennai and Jamshedpur. While the unit at Dappar in Punjab and Oragadam in Chennai mainly produce passenger car wheels, the plant at Jamshedpur in Jharkhand rolls out truck wheels. The three plants have a combined total annual capacity of 16.6 million wheels.

June 08, 2020 / 12:31 PM IST
 
 
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Auto components maker Steel Strips Wheel Ltd (SSWL) on Monday said all its plants are currently functional following lockdown relaxations and the company expects to reach 75 percent of pre-COVID-19 levels of production by September this year.

All the plants are catering to customer demand based on each location, the company said in a regulatory filing.

The company has three production facilities in Punjab, Chennai and Jamshedpur. While the unit at Dappar in Punjab and Oragadam in Chennai mainly produce passenger car wheels, the plant at Jamshedpur in Jharkhand rolls out truck wheels. The three plants have a combined total annual capacity of 16.6 million wheels.

"We expect capacity utilization improving steadily in all across the plants and finally reach 75 per cent of pre-COVID-19 levels of production by September 2020. The volume delivery will rise strongly going into September 2020," it added.

The company further said the numbers from June to september looks promising and expects to reach a gross revenue rate of Rs 125 crore to Rs 130 crore, by September this year.

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SSWL said it expects to roll out 6.75 lakh wheels in June, 9.25 lakh wheels in July, 10.5 lakh wheels in August and 11.1 lakh units in September.

"The volume support is backed heavily by very strong performance in tractor, exports and alloy wheel segment. Exports should report the highest ever numbers from July onwards with a very strong trajectory visible from the segment," the company said in the filing.

Besides, the company said it expects alloy wheel capacity to "hit close to 80-90 per cent capacity monthly run rate by the October-December quarter contributing to a strong comeback by the company".

The passenger vehicles and two-three wheeler segment will start making its contribution from July onwards and are expected to steadily improve going into the Indian festive season, it said.

PTI
first published: Jun 8, 2020 12:23 pm

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