Steel Strips Wheels (SSWL) said Wednesday the company will increase its production capacity by 1.5 million wheels annually to cater to increasing demand from OEMs.

The total investment involved will be around Rs 50 million. The new capacity will start yielding production by April 2015.

The combined capacity post this expansion will go up to 18.1 million wheels across three plants of SSWL. This expansion is coming at the mother plant in Dappar which is running at peak capacity of 85%.

Shares of the company declined Rs 2.35, or 0.79%, to trade at Rs 294.00. The total volume of shares traded was 2,708 at the BSE (2.06 p.m., Wednesday).