Pennar Engineered Building Systems Limited (PEBS), a subsidiary of Hyderabad-based Rs 1,370-crore Pennar Industries, has embarked on a Rs 80-crore expansion plan involving setting up a second manufacturing facility in Rajasthan at a cost of around Rs 65 crore besides expanding the capacity of its existing unit at Sadashivpet near here at a cost of Rs 15 crore.
The new plant would be established by next year while the capacity expansion of the Sadashivpet unit would be completed in six months, PEBS executive director, PV Rao, told mediapersons here on Tuesday.
He said PEBS, a producer of pre-engineered building products, had doubled its capacity from 30,000 tonnes per annum (tpa) to 60,000 tpa in the last 20 months of its operations to meet the increasing demand. The capacity would now be increased further to 90,000 tpa.
The company had recently bagged a Rs 23.5-crore order for supply and installation of 400,000 square feet pre-engineered steel building for Reliance Retail distribution centre at Pune.
Rao said Reliance was planning to set up 15 such distribution centres across the country and PEBS was expecting that it would be a preferred bidder for most of them.
PEBS, which had so far bagged orders worth Rs 500 crore, had developed a blue chip customer base. Its customers include, L &T, Proctor and Gamble, Dr Reddy's Laboratories, HCC, Schneider Electric, Bosch, Toyota and Thermax. It had also bagged orders from the Chennai metro rail project and has plans to bid for Hyderabad metro rail works.
Pennar group chairman, Nrupender Rao, said PEBS had posted a turnover of Rs 165 crore and a net profit of Rs 6.5 crore last year. The company was expecting to achieve a turnover of v250 crore in the current financial year and Rs 500 crore by FY 2014.
PEBS director, Aditya Rao, said construction of green buildings was going to be the key differentiator for the company in future. Though green buildings cost about 4 per cent more than the normal buildings, the additional expenditure could be recovered soon through savings from energy consumption, he added.
