Steel Strips Wheels Limited (SSWL) announced a significant capacity expansion through the establishment of new manufacturing units in Gujarat. The Board of Directors, in a meeting held on December 26, 2025, approved the execution of a lease agreement with its wholly-owned subsidiary, AMW Autocomponent Limited (AACL). This agreement, for an initial period of 11 months commencing December 26, 2025, involves leasing land measuring approximately 288,793.19 sq. mt. located in Bhuj, Gujarat. The leased property will be used to set up new manufacturing units for Alloy Wheels and Aluminum Steering Knuckle, meeting the company's increasing operational requirements. The proposed expansion includes setting up a new unit for Alloy Wheels with an estimated initial production capacity of 7.2 million units per annum. This capacity is expected to be added by Q4 of FY 2026-27, subject to regulatory approvals. The estimated capital expenditure for this unit is ₹300 crore, to be financed through debt, internal accruals, or a combination thereof. The rationale behind this expansion is the anticipated growth in the automotive industry and rising demand for Alloy Wheels from domestic and export markets. Furthermore, a new unit for Aluminum Steering Knuckle will be established, with an estimated initial production capacity of 0.6 million units per annum. This capacity is also planned to be added by Q4 of FY 2026-27, pending necessary approvals. The investment for this unit is estimated at ₹120 crore, with similar financing options. The expansion is driven by the increasing penetration of Aluminum Knuckles in the domestic market for lightweight passenger vehicles and the expected rise in demand from existing customers. The lease agreement with AACL is considered an arm's length transaction, with a monthly rent of ₹45,00,000. The Board meeting commenced at 4:00 p.m. (IST) and concluded at 6:25 p.m. (IST).