Shams ul Nisa

Loads Limited is expanding its investment in Hi-Tech Alloy Wheels Limited (HAWL) to leverage the growing aftermarket segment, reports WealthPk. As a subsidiary of Loads Limited, HAWL specializes in premium alloy wheel production for local and international markets. As a result, this will strengthen the company’s market position and diversify its revenue by tapping into the automotive sector’s recovery and growing aftermarket demand.

Moreover, the company is also exploring strategic partnerships, including potential joint ventures, to enhance manufacturing capabilities and establish HAWL as a leading aftermarket supplier. Therefore, the company is capitalizing on Pakistan’s growing automotive aftermarket by targeting both original equipment manufacturers (OEMs) and aftermarket buyers. This strategy expands its customer base, increases revenue, and strengthens its industry presence.

Loads Limited delivered a strong financial performance in the 1HFY25, highlighting its effective execution of strategic initiatives. The company’s net sales soared by 65%, while net profit rebounded to Rs202 million from a loss of Rs39 million last year. Despite setbacks in operationalizing HAWL due to market challenges, the company has shown resilience through cost optimization and efficient resource management. The company recorded a Rs323 million impairment charge on markup recoverable from HAWL but remains committed to maximizing its potential through strategic investments and partnerships.

The recovery of Pakistan’s automotive sector has created strong growth opportunities for related industries. Passenger car sales rose by 54% in the 1HFY25, while heavy commercial vehicle sales jumped 87%, driving increased demand for auto parts, including alloy wheels. Thus, Loads Limited is poised to capitalize on this momentum, supported by favorable government policies promoting local manufacturing and exports.  

Moreover, the company has adopted advanced manufacturing technologies to boost efficiency while reducing environmental impact. Loads Limited aims to meet global standards and attract eco-conscious consumers by embracing sustainable practices. Additionally, HAWL’s lineup will feature lightweight alloy wheels designed to enhance fuel efficiency, aligning with global trends in green automotive solutions.

Looking ahead, Loads Limited is confident in the growth prospects of HAWL and the expanding aftermarket sector. By capitalizing on the growing aftermarket sector and forming key partnerships, the company is well-positioned for long-term success in a competitive industry. Therefore, the company continues to drive Pakistan’s industrial growth, setting new standards for excellence in automotive parts manufacturing through continuous innovation and adaptability.

 
Credit: INP-WealthPk