South Korea’s alloy wheel manufacturer Kalink Co Ltd has decided to invest around $2 million in Indian automotive steel wheel company Steel Strips Wheels Ltd (SSWL) by subscribing to fresh equity shares in the company, according to a stock market disclosure.
Kalink Co has manufacturing facilities at South Korea and China with a total manufacturing capacity of 4.5 million wheel rims per annum and is supplying to major original equipment manufacturers (OEMs) such as Volkswagen, Nissan and Chrysler, etc.
Meanwhile, New-Delhi based SSWL said in a separate statement that it has entered into an agreement with Kalink Co to set up a modern alloy wheel manufacturing facility at Mehsana, Gujarat for an initial capacity of 1.5 million alloy wheel rims per annum.
“This is to address the growing demand of alloy wheels from OEM versus the current supply and expected capacity in the next five years and also India’s strategic advantage in exporting these wheels,” SSWL said in the statement.
Incorporated in 1991, SSWL designs and manufactures automotive steel wheels and its product range caters to two and three wheelers, passenger cars, multi-utility vehicles, tractors, trucks and OTR vehicles.
On Monday, shares of SSWL closed the day at Rs 347.50 a piece on the BSE, up 6.46 per cent from previous close in a flat Mumbai market.
At this price, Kalink could pick 2.5 per cent stake in SSWL, back-of-the-envelope calculations show.
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