Steel Strips Wheels (SSWL), a producer of automobile wheel rims, has entered into an agreement with Kalnik Company to set up alloy wheel manufacturing facility at Mehsana, Gujarat for an initial capacity of 1.5 million alloy wheel rims per annum with sizes ranging from '14' to '19'.

This is to address the growing demand of alloy wheels from Original equipment manufacturer (OEM) vs. the current supply and expected capacity in the next 5 years and also India's strategic advantage in exporting these wheels.

Shares of the company gained Rs 21.1, or 6.46%, to settle at Rs 347.50. The total volume of shares traded was 12,765 at the BSE (Monday).