With its multi-storeyed pre-engineered buildings (PEB) manufacturing plant at Rourkee crossing the 80 per cent capacity utilisation, Delhi-based building solutions provider, Everest Industries Limited has evinced interest in setting up a similar plant. The company's PEB division, which currently runs a 40,000 tonnes per annum unit at Rourkee, is scouting land in Gujarat for setting up a second PEB plant.
"We are looking at Halol, Jambusar and Jhagadia regions of Gujarat for setting up our second PEB unit. Apart from the infrastructure, it is the kind of projects that we are in process and are likely to be taken in near future that has made us look for a suitable location in this part of the country," said Manish Garg, president, steel buildings, Everest Pre Engineered Steel Buildings Division. Everest Industries intends to invest over Rs 20 crore for setting up a pre-engineered steel building manufacturing plant with a capacity of 40,000 tonnes per annum.
The PEB division of Everest Industries is already working on or has completed projects worth Rs 25 crore and requiring 3,000 tonnes pre-engineered steel in the state of Gujarat. For instance, Everest Industries recently bagged a Rs 5.5 turn key project for PEB installation at General Motors India (GM) plant at Halol near Vadodara.
"While we have been awarded a project for installation of pre-engineered building at GM India's upcoming plant extension at Halol for phase one, we are also expecting approval of phase two project worth Rs 4.5 crore from GM India. The other clients that we have been servicing in Gujarat include Cadila Pharma, Kirloskar Brothers, and Adani Group. Roughly, Gujarat contributes around 7-8 per cent of Everest Industries' total PEB business," said Garg.
Everest Industries is also in talks with Adani Group for setting up a pre-engineered building at one of the ports in Gujarat.
Talking further about the segment, Garg said, "While 85 per cent of large single structure PEB's application is in industries, it is now that people are waking up to the idea of multi-storeyed PEBs. It is now replacing the conventional RCC framed structure in the industry since it reduces construction and establishment time by 50 per cent. Moreover, it is 4-5 times more earthquake resistant."
According to Garg, currently the Rs 2,500 crore organised PEB sector has few players in the country including Kirby, Inter Arch, Tata Bluescope Steel, and Everest,, among others. Everest Industries Limited is expecting to close the financial year 2010-11 at PEB revenue of Rs 200 crore at a growth of 55 per cent.
The company currently has an order book of over Rs 300 crore for PEB.
