New Delhi-based Advantec Wheels, which has set out to build a premium aftermarket alloy wheels brand in India with its unique flow-forged products that offer extensive customisation options to customers, plans to invest Rs 100 crore in the business which is likely to get commercialised from April 2024.
The company is setting up a state-of-the-art manufacturing facility in Northern India’s Jammu & Kashmir. Commissioning of this 200,000-units-per-annum capacity plant is slated by Q1 FY2025. While it has already invested around 60 percent of its planned capex into the project, the remaining will be infused as the business matures. The company has solely relied on bank debt to fund its project.
Advantec Wheels is eyeing a unique positioning in the Indian aftermarket which is currently witnessing heightened demand for aesthetic accessories such as alloy wheels as customers switch to buying bigger, and more premium vehicles.
“We aim to cater to young car buyers and automotive enthusiasts with our premium range of products that will focus on an extra dimension of personalisation beyond our key focus areas of following a core design philosophy, and quality-oriented process,” Jasneet Singh, Founder-Director, Adavntec Wheels told Autocar Professional.
“We aim to offer up to 25 paint finishes, and are extensively focusing on the paint finishing technology to get the right look. We have limited our initial designs to only three options in sizes from 16- to 22-inch range, to eliminate confusion, and maximise personalisation options for the customers,” explained Singh.
The upcoming wheel-manufacturing plant will be equipped with in-house foundry, machining, as well as painting shops, and Advantec Wheels aims to reach up to 50 percent capacity utilisation levels in the next couple of years. The company targets registering sales volumes of around 90,000 wheels, and is eyeing to clock Rs 25 crore in revenues in the first year.
The company plans to price its products at around Rs 40,000 for a set of four flow-forged alloy wheels, which will be up to 30-40 percent cheaper compared to similar products from global brands that are imported into India. “We aim to create a new brand, and target a niche set of customers with a relatively affordable price tag,” pointed out Jasneet Singh.
Advantec Wheels aims to tap the personalisation needs of young car buyers and enthusiasts with its offerings.
Distribution in 13 key cities, eyeing exports
Aiming to tap into the large market pool of potential customers looking for aftermarket alloy wheels, the company is going with a phase-wise distribution channel establishment as it gears for its market entry by April 2024. While it will begin distribution in Delhi-NCR, Bengaluru, Chandigarh, and Mumbai in the first phase, the company will quickly expand into a total of 13 cities, including Kochi, Hyderabad, Chennai, Ludhiana, Guwahati, and Ahmedabad, among others.
Advantec Wheels plans to sign up both B2B (distributor-to-retailer sales) and B2C channel partners, while also aims to have a direct-to-customer digital retail option. “We have identified potential distribution partners and initiated the talks. We will finalise our partners as we inch closer to rolling out the products from our plant,” said Singh.
He further explained that the Jammu & Kashmir government’s attractive industry incentives have been the key driving force behind the company’s plans to set up its manufacturing footprint in the state. Advantec Wheels also intends to tap into the huge global opportunity of exporting high-quality, made-in-India forged wheels to markets in the Middle East, Europe, and the US.
“Our flow-forged products will conform to the BIS and ISO standards, and we will be exploring export opportunities in key markets overseas by striking partnerships with existing and renowned distributors in those regions,” Singh said.
The company eyes profitability within 2-3 years, and aims to be a disruptive player in the premium alloy wheels category with its 16- to 22-inch size offerings, and intensive customisation options.