Wheels India, the manufacturing giant with a strong presence in Chennai, has officially signed an important deal with SHPAC, a leading South Korean manufacturer of hydraulic cylinders. This is a strategic transaction involving the sale of important manufacturing technology that will mark a critical shift by Wheels India to significantly boost its hydraulic cylinder top-line. The hydraulic cylinder business is one strategic location that the company has very specifically stated it will focus on growing in the near future. 

Vision and diversified manufacturing ecosystem

The agreement is not a simple technical dialogue but a milestone in achieving greater global competitiveness. The aim is to leverage the high skills and technology accorded by SHPAC to promote holistic growth and establish a more profound and rooted presence in its overseas markets.

Wheels India has already managed to position itself as a prominent world manufacturer of wheels specifically used in the construction machinery industry. Based on this existing foundation, the firm is aggressively growing its market base in key international markets and especially in countries such as Europe and North America. The SHPAC technology transfer will expand on this existing international coverage, which will allow the company to provide high-quality and technologically advanced hydraulic cylinder solutions to its existing customers.

Wheels India has had a well-developed and diversified manufacturing portfolio that is well beyond its hydraulic cylinder venture. The company is still one of the foremost producers of key parts of many types of vehicles, such as wheels on heavy trucks, farm tractors, passenger cars, and construction machines. The company also manufactures specialised air suspension systems serving both trucks and buses in response to increasing requirements of enhanced vehicle stability and ride comfort.

The firm produces important industrial parts, used in the construction industry and the rapidly growing windmill industry. This diversified manufacturing base, covering various industries and types of products, offers a firm ground to enable the capital-intensive move into the high-technology hydraulic cylinder manufacturing.

Strategic expansion and financial performance

The move to venture into hydraulic cylinders is quite timely, as Wheels India has shown sound financial sustainability. The company has, in the previous financial year, crossed another major milestone as net profit hit a benchmark of ₹100 crore. This has been carried on into the latest reporting period. During the first quarter that ended on June 30, Wheels India registered a consolidated net profit of ₹26.44 crore on the overall revenues of ₹1,187 crore.

According to its proven performance in foreign trade, the export revenues of the company also showed good results in this quarter, making it cross through the ₹300-crore target. The joint venture is likely to open up, attracting new potential opportunities of significant scope, and should offer the much-needed boost that Wheels India needs to establish a substantial niche in the competitive global hydraulic cylinder market.

Conclusion

The technology transfer deal between Wheels India and SHPAC of South Korea is a milestone in the desire of Wheels India to join the world to be a market leader in the hydraulic cylinder industry. With this key technology, the manufacturer based in Chennai has strategically positioned this business segment as one of the main global growth drivers over the next several years, aiming to speed up its growth and take advantage of its leading position as a manufacturer in the world construction equipment industry.