Chennai, May 27 (IANS) Wheels India will make lift axles for domestic truck-makers for which it has tied up with a Turkish company, Ege Endustri, for technology, a top company official said Monday.
"We have tied up with Ege Endustri for making lift axles for domestic truck-makers. Lift axles enable a multi-axle truck to lift off the road when it is plying with any or less cargo. We are also looking at providing our air suspension manufacturing technology for the Turkish company," Srivats Ram, Wheels India managing director told reporters here.
He said the company will be raising around Rs.100 crore to meet its fund requirements and also to meet the regulation of having 25 percent public shareholding.
According to him, it will take around one year for Wheels India to come out with its lift axle product.
Ram said the company will form a committee to decide on the timing and the mode of raising Rs.100 crore equity to meet the funds requirements.
The public issue will also enable the company to comply with the Securities and Exchange Board of India (SEBI) norms for listed companies to have minimum public shareholding of 25 percent, he added.
He said the mandatory open offer for the company's shares by Titan Europe Plc along with titan International Inc was completed late last month.
After the open offer, Titan group holding in Wheels India stands at 41.73 percent while the holdings of the Indian promoters and the public is 49.7 percent and 8.57 percent, respectively, Ram said.
Predicting a muted growth for Wheels India this fiscal, Ram said the central government's announcement of activating mega power projects and sourcing of buses under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) scheme is expected to provide some cheer.
The centre's thrust on mega power project is expected to fetch Wheels India some fabrication orders.
Wheels India closed last fiscal with a revenue and net profit of Rs.1,927 crore and Rs.31.88 crore as against Rs.2,080 crore and Rs.34.35 crore, respectively, posted during 2011-12.
According to Ram, the market for commercial vehicles in India and the global construction and mining equipment market slowed down significantly in the second half of last year with other sectors logging moderate slowdown.