SSWL is delighted to inform that it has secured the order book for its alloy wheel plant with the help of domestic customer supply programs. The supply programs are signed off and the ramp up plan is already shared earlier till Mid of next year and regular update of the same will be provided on a half yearly basis on further ramp up. The order book visibility starts from 1 May 2020 and spreads over coming years till 2024-2025. This gives immense confidence to SSWL to expand its capacity of Alloy wheel plant in Mehsana to support the volume visibility of customer program. The total visibility of the order book for coming 5 years comes to approximately 3750Crs. The volume growth has the assumption of having the expanded capacity of SSWL Mehsana plant coming on stream in FY 20-21 End and the capacity with be 3.0Mn at the end of FY 20-21 to meet the committed volumes to customer and thereby helping us meet the extended demand of domestic customers by this capacity.
At 3.0Mn capacity SSWL has the potential to generate turnover of 1100crs per annum there by generating huge economy of scale multiplier to its operational efficiency. The plant will contribute immensely towards its guidance of improving the group level EBIDTA/ROC/Leverage levels. We expect Mehsana plant to contribute close to 25% to total revenue going forward coming into full phase production.
Below is the potential turnover which is accretive to SSWL in coming 5 years from alloy wheel plant. We expect the business to be EBIDTA accretive the SSWL consolidated business and help improve financial matrix over the period.
|CY 20||CY 21||CY 22||CY 23||CY 24||Total Turnover over 5 yrs|
|Turnover in Crs||330||620||850||950||1000||3750|