Steel Strips Wheels Limited (SSWL) has approved a major expansion of its manufacturing capacity in Gujarat to meet rising demand from both domestic and international automotive markets. The decision was taken by the company’s Board of Directors on December 26, 2025.
As part of this expansion, the company will set up two new manufacturing units focused on high-growth automotive components.
Land Arrangement for New Units
To support the expansion, SSWL has entered into a lease agreement with its wholly-owned subsidiary, AMW Autocomponent Limited (AACL).
Location: Bhuj, Gujarat
Land Area: Approximately 288,793.19 sq. meters
Lease Period: Initial term of 11 months, extendable
Monthly Rent: ₹4.5 crore
Transaction Nature: Related party transaction conducted at arm’s length
This arrangement allows SSWL to quickly commence capacity addition without delays associated with fresh land acquisition.
Products and Capacity Addition
The expansion is focused on two key automotive components with strong growth potential:
Alloy Wheels:
Planned capacity of 1.2 million units per annum
Aluminum Steering Knuckles:
Planned capacity of 0.6 million units per annum
These components are increasingly in demand due to rising vehicle production and the industry’s shift toward lighter and more fuel-efficient vehicles.
Investment and Funding Details
Total Estimated Capex: ₹420 crore
₹300 crore for Alloy Wheels
₹120 crore for Aluminum Steering Knuckles
Funding Source: Debt, internal accruals, or a combination of both
Expected Commissioning: Q4 FY 2026–27, subject to statutory and regulatory approvals
Why SSWL Is Expanding Capacity
The company highlighted multiple strategic reasons behind the expansion:
Automotive Market Growth: Rising vehicle production and export demand
Higher Alloy Wheel Adoption: Increasing preference for alloy wheels in both domestic and overseas markets
Lightweighting Trend: Growing use of aluminum steering knuckles to reduce vehicle weight and improve efficiency
Customer Demand: Additional capacity required to meet higher orders from existing customers