Steel Strips Wheels Limited approved plans to expand its manufacturing footprint in Gujarat by setting up new facilities for alloy wheels and aluminium steering knuckles, as part of a capacity expansion programme aimed at meeting rising operational requirements. The decision was taken at a meeting of the company’s board of directors held on 26 December 2025.
The estimated capital expenditure for the alloy wheels facility is INR 3 billion, while the aluminium steering knuckle project is expected to involve an investment of INR 1.2 billion. The company plans to fund the investments through a mix of debt, internal accruals, or a combination of both.
For the alloy wheels unit, the company has indicated an initial estimated production capacity of 7.2 million units per annum. The aluminium steering knuckle unit is planned with an initial estimated capacity of 0.6 million units per annum. Both capacities are proposed to be added during the fourth quarter of the 2026–27 financial year, subject to approvals and clearances.
The company will undertake the expansion on a leased industrial site located on the Bhuj–Bhachau Road near Village Kannaiyabe in Kachchh district, Gujarat. The land parcel, measuring about 288,793 square metres, along with existing buildings, sheds, structures, utilities and facilities, will be taken on lease from AMW Autocomponent Limited, a wholly owned subsidiary of Steel Strips Wheels. The lease has an initial tenure of 11 months starting 26 December 2025 and can be extended as required. According to its filing with the stock exchanges, the monthly lease rent is INR 45 million and the transaction has been undertaken on an arm’s length basis.
The expansion involves setting up two separate manufacturing units on the leased land, one for alloy wheels and another for aluminium steering knuckles, subject to receipt of statutory and regulatory approvals. The board has approved the projects in principle, with execution timelines linked to regulatory clearances.
In its rationale for the expansion, the company cited expected growth in the automotive industry and a projected increase in demand for alloy wheels from both domestic and export markets. For aluminium steering knuckles, the company highlighted rising penetration in the domestic market to support vehicle lightweighting, particularly in passenger vehicles, along with increased demand from existing customers that would require additional capacity.
Alloy wheels are produced using the low pressure die casting (LPDC) process, followed by precision machining, heat treatment and surface finishing, with each design validated through simulation and physical testing to meet safety and durability standards. Aluminium steering knuckles are manufactured through counter pressure casting (CPC), after which the components are accurately machined and inspected to achieve the required strength, dimensional accuracy and performance needed for high-stress automotive applications.
Steel Strips Wheels Limited is an automotive component manufacturer primarily engaged in the production of steel and alloy wheels for passenger vehicles, commercial vehicles, tractors and two-wheelers, serving original equipment manufacturers and export markets.
