Quick Takeaways
  • Steel Strips Wheels will invest INR 5 billion to establish aluminium wheel and knuckle production facilities in Bhuj.
  • The expansion is expected to strengthen OEM opportunities and support export growth across multiple regions.

India-based Steel Strips Wheels Limited (SSWL) has announced an investment of INR 5 billion to expand its manufacturing footprint at the AMW plant located in Bhuj. The company plans to establish two new facilities comprising an aluminium wheel manufacturing plant with an annual production capacity of 1.2 million units and an aluminium knuckle plant designed to deliver between 1.1 million and 1.2 million units across two development phases. The investment is aimed at strengthening SSWL’s position in lightweight automotive component manufacturing while supporting future customer demand.

The aluminium knuckle facility will be developed in two stages. Under Phase 1, the company will add production capacity of 600,000 units annually, while Phase 2 will contribute a further 500,000 units. SSWL has set a target of October 2026 for trial production at the Bhuj site. Customer qualification and approval processes are expected to progress thereafter, with approvals anticipated during the fourth quarter of FY27, ending in March 2027.

Following completion of the expansion programme, SSWL’s total aluminium wheel manufacturing capacity is projected to increase to 6.2 million units annually. The company also expects aluminium knuckle production capacity to reach approximately 1.1 million units by the end of FY2027. Capacity is planned to rise further to around 1.6 million units by FY2028, reflecting the company’s long-term strategy to expand its presence in high-value automotive component segments.

SSWL stated that it is actively pursuing additional business opportunities and is targeting two significant new original equipment manufacturer (OEM) programme wins within the segment. These potential contracts are expected to support utilisation of the upcoming facilities and contribute to future revenue growth once production reaches commercial scale.

In addition to domestic expansion plans, the company highlighted progress in its international business portfolio. Export programmes secured across Europe, Latin America, and Asia during the past 18 months are expected to scale up progressively through FY2027. The anticipated ramp-up of these programmes is expected to complement capacity additions at Bhuj and reinforce SSWL’s growth strategy in global automotive markets.

Frequently Asked Questions

What is Steel Strips Wheels investing in at its Bhuj facility?
Steel Strips Wheels Limited is investing INR 5 billion to establish new aluminium wheel and aluminium knuckle manufacturing facilities at its Bhuj plant. The expansion includes an aluminium wheel facility with an annual capacity of 1.2 million units and an aluminium knuckle facility with capacity of approximately 1.1–1.2 million units across two phases. The investment is intended to support future OEM demand, increase manufacturing capabilities, and strengthen the company’s position in lightweight automotive components.

When will the new Bhuj facilities begin production?
Trial production at the Bhuj expansion project is scheduled to begin in October 2026. Following trial operations, customer validation and approval processes are expected to continue through FY27. Steel Strips Wheels anticipates receiving customer approvals by the fourth quarter of FY27, ending in March 2027. These approvals will enable commercial production and support the company’s plans to serve new OEM programmes and expanding export markets.

How will the expansion impact SSWL’s production capacity?
The investment will significantly increase the company’s manufacturing capacity. Total aluminium wheel capacity is expected to reach 6.2 million units annually after the expansion. Aluminium knuckle capacity is projected to reach around 1.1 million units by the end of FY2027 and further increase to approximately 1.6 million units by FY2028. These additions are designed to support both domestic and international business growth opportunities.

What export opportunities did SSWL highlight in its update?
SSWL indicated that export programmes secured across Europe, Latin America, and Asia over the last 18 months are expected to ramp up through FY2027. The company expects these programmes to contribute to future production volumes and revenue growth. As new capacities become operational, the export business is anticipated to play an important role in improving facility utilisation and strengthening the company’s presence in global automotive component markets.

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