SSWL’s Mehsana plant secures Alloy Wheel long-term orders worth Rs 3,750 cr

NEW DELHI, July 3: Auto components maker Steel Strips Wheels Ltd (SSWL) on Friday said its Mehsana plant has bagged alloy wheels long-term orders worth Rs 3,750 crore through domestic customer supply programmes.
The supply programmes are signed off and the ramp-up plan is in place, SSWL said in a regulatory filing.
“The order book starts from May 1, 2020 and spreads over the coming years till 2024-25,” it said.
In the calendar year 2020, the expected turnover from the order is Rs 330 crore; in 2021 it is Rs 620 crore; Rs 850 crore in 2022; Rs 950 crore in 2023, Rs 1,000 crore in 2024 with a total of Rs 3,750 crore over five years, the filing added.
The company, however, said “the volume growth has the assumption of having the expanded capacity of SSWL Mehsana plant coming onstream in FY20-21 end, and the capacity will be 3 million (30 lakh units) at the end of FY20-21 to meet committed volumes to customers.”
It will also help the company meet “the extended demand of domestic customers by this capacity”, the company added.
SSWL said at 30 lakh capacity it has the potential to generate turnover of Rs 1,100 crore per annum.
“We expect the Mehsana plant to contribute close to 25 per cent of total revenue going forward coming into full-phase production,” it said. (PTI)