Tuesday, 19 July 2011

Steel Strips Wheels bags $33 million contract from BMW

Steel Strips Wheels Ltd, a leading manufacturer of automotive steel wheels, on Monday said it has bagged contract worth USD 33 million from leading car maker BMW Germany, for supply of wheels for latter's new car launches. 

"...BMW Germany has selected Steel Strips Wheels Ltd (SSWL) for supply of steel wheels for its new launches in 2013 and 2014. The annual volume for the three new models is 2,65,000 steel wheels and supplies shall start from November 2013," the company said in a filing to the Bombay Stock Exchange. 

The steel wheels will be delivered to BMW's Oxford, Leipzig and Regensberg plants in Germany and projected volume is USD 32.65 million, the filing added. 

The company already has a tie-up with BMW for supplying steel wheels to the latter's Oxford plant for its prestigious mini model, the filing further said. 

SSWL currently has 11.5 million car wheels manufacturing capacity at its plants in Dappar (near Chandigarh) and Oragadam (near Chennai). It also manufactures one million truck wheels at its Jamshedpur plant. 

For the quarter ended June 30, 2011, net profit of the company went up by 59.83 per cent to Rs 11.54 crore, as compared to Rs 7.22 crore it reported for the same quarter a year ago, SSWL said in a separate regulatory filing. 

Net sales of the company also increased by 54.92 per cent at Rs 229.84 crore during the quarter under review vis-a-vis Rs 148.36 crore in Q1 of 2010-11. 

According to its website, the company is in the process of expanding its Oragadam plant from 2.5 million wheels to 6 million per annum. 

Scrips of the company today closed at Rs 290.05 apiece on the Bombay Stock Exchange, up 3.94 per cent from the previous close.


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