Steel strips wheels Limited has announced a significant expansion move by entering into a tripartite agreement with Chinese technology partners for establishing a new alloy wheels manufacturing facility in Gujarat. The agreement was signed on February 13, 2026, marking a strategic step in the company's capacity expansion plans.

Agreement Partners and Structure

The tripartite agreement involves two Chinese entities registered under the laws of the People's Republic of China. The partnership brings together specialized expertise in alloy wheel manufacturing technology and equipment supply.

Facility Specifications and Investment

The new manufacturing facility will be established at Bhuj, Gujarat, focusing on alloy wheels production for the automotive sector. The project represents a substantial investment in modern manufacturing capabilities.

Scope of Collaboration

The agreement encompasses comprehensive support for establishing the manufacturing facility, including technology transfer and technical expertise. The Chinese partners will provide end-to-end solutions for the project implementation.

Key components of the collaboration include:

• Selection, supply, installation and commissioning of machinery and equipment
• Transfer of technical know-how and latest technologies
• Technical guidance for alloy wheel manufacturing processes
• Equipment procurement support from global manufacturers

Strategic Rationale

Arays brings significant expertise to the partnership as a well-established manufacturer in the alloy wheel manufacturing sector. The company operates complete facilities for alloy wheel production in China and maintains service relationships with global automobile factories and aftermarket segments. The partnership leverages Arays' cooperative relationships with equipment manufacturers worldwide and their experience in providing technical guidance and equipment procurement services.

This collaboration aligns with Steel Strips Wheels Limited's current capacity expansion strategy, enabling the company to enhance its manufacturing capabilities in the competitive automotive components market. The facility will contribute to meeting growing demand for alloy wheels in both domestic and international markets.

Steel Strips Wheels Limited achieved its highest ever monthly net turnover of ₹480.03 crore in January 2026, marking a robust yearly growth of 17.32%. The company also recorded its highest ever monthly units sold during the month, demonstrating strong momentum across key business segments with aluminum and tractor divisions leading the growth trajectory.

Record January 2026 Performance

The company's exceptional performance was driven by significant growth across multiple segments, with net turnover reaching ₹480.03 crore compared to ₹409.16 crore in January 2025. Gross turnover stood at ₹556.19 crore, reflecting an 11.14% year-over-year increase.

Segment-Wise Performance Analysis

The aluminum segment achieved its highest ever monthly sales with 25% growth by value and 19% growth by volume year-over-year. The tractor segment also recorded its highest ever monthly sales, posting 25% growth by value and 26% growth by volume. The 2 & 3 wheeler segment demonstrated exceptional performance with 55% value growth and 49% volume growth.

Strong Q3 FY26 Foundation

The record January performance builds upon the company's impressive Q3 FY26 results, which showcased significant revenue growth despite challenging export market conditions. The quarterly results highlighted the strength of the company's market positioning with sustained domestic demand momentum.

Commercial Vehicle and Premium Segments Drive Growth

The truck segment achieved its highest ever domestic monthly sales in the commercial vehicle category, recording 20% growth both by value and volume. The aluminum segment's exceptional performance reinforces its position as a key growth driver, benefiting from the company's successful premiumization strategy where alloy wheels contribute approximately 37% to total revenue while representing 20% in volume terms.

Capacity Expansion Progress

The company continues its Rs 420 crores CAPEX investment in Bhuj, utilizing the acquired AMW facility infrastructure. This strategic expansion will significantly enhance capacity across aluminum wheels and knuckles segments, with commercial production targeted for December 2026.

The record January performance reinforces the company's strong market position and growth momentum, with management maintaining confidence in achieving the Rs 6,000 crores revenue target for FY27 from existing assets.