Steel Strips Wheels Limited (SSWL) announced significant expansion plans during its Board of Directors meeting held today, approving a strategic lease agreement and capacity enhancement initiatives in Gujarat.
The company's board approved the execution of a lease agreement with AMW Autocomponent Limited (AACL), its wholly owned subsidiary, for an initial period of 11 months commencing December 26, 2025. The lease covers approximately 288,793 square meters of land situated at Bhuj-Bhachau Road, Near Village Kannaiyabe, Kachchh, Bhuj, Gujarat, with a monthly rental of ₹45 lakh.
The expansion involves establishing two new manufacturing facilities at the leased premises. The first unit will focus on alloy wheels production with an initial estimated capacity of 7.2 million units per annum, requiring an investment of approximately ₹300 crore. The second facility will manufacture aluminum steering knuckles with a projected capacity of 0.6 million units annually, entailing an estimated capital expenditure of ₹120 crore.
Both facilities are expected to become operational during the fourth quarter of fiscal year 2026-27, subject to receipt of necessary statutory and regulatory approvals. The company plans to finance these projects through debt, internal accruals, or a combination of both.
The capacity expansion is driven by anticipated growth in the automotive industry and rising demand for alloy wheels from domestic and export markets. Additionally, increasing aluminum knuckle penetration in the domestic market aims to support light-weighting initiatives in passenger vehicles, with existing customers expected to require additional capacity.