Steel Strips Wheels’ (SSWL) Mehsana Alloy wheel plant is expected to attain 65-70% production capacity by March 2020 with firm order commitment coming from customers. The plant has the capability to have operational breakeven at less than 30% capacity utilization and will cover all the financial expenses at 45-50% capacity utilization.
The company expects the Mehsana plant to start contributing to Net cash accruals in Q4 of FY 2019-20. The plant also will start contributing towards EBIDTA accretion starting Q4 of FY 2019-20 to balance the product portfolio and help in de-risking the existing business.
SSWL is a part of the Steel Strips Group, headquartered in Chandigarh. It is engaged in the manufacturing of single piece steel wheel rims in the range of 10 to 30 inches for scooters, passenger cars, utility vehicles and tractors. It supplies rims to almost all major manufacturers of two wheelers, three wheelers, four wheelers, tractors and heavy commercial vehicle.
