Wheels India Limited has announced the infusion of capital into its wholly owned subsidiary in Europe, marking a strategic step to enhance its global footprint. The company has invested €50,000 in WIL Europe GmbH, which is currently in the process of incorporation and is yet to commence operations.
The investment, made through cash consideration, is intended to support the establishment of the subsidiary's business development and supply chain management activities across automotive and non-automotive sectors in Europe. WIL Europe GmbH will be based in Germany.
In its regulatory filing with the BSE and NSE, Wheels India confirmed that WIL Europe GmbH will be a 100% owned subsidiary. The company stated that this transaction, though classified as a related party transaction, has been carried out on an arm’s length basis. Additionally, the promoters of Wheels India do not hold any interest in the newly formed entity.
The incorporation of WIL Europe GmbH is subject to regulatory approvals under the respective laws of India and Germany. Wheels India has said it will notify the stock exchanges once the certificate of incorporation is received.
The development follows an earlier intimation made in November 2023 regarding the formation of wholly owned subsidiaries as part of the company’s broader growth strategy.