PEBS Pennar, the subsidiary of Pennar Industries Limited, India's leading engineered metal products company, announced an expansion of its facility from 30,000 MTP to 50,000. The work on the second been line has begun. The PEBS Pennar facility was commissioned in February, 2010 in Medak district near Hyderabad for manufacturing world class 'green' pre-engineered buildings. In a short span of six moths the company today boasts an order book of Rs. 170 crores.
Speaking on the occasion Mr. Nrupender Rao, Chairman Pennar Industries, said, “The industry has accepted the concept of Pre-engineered buildings and with a boon in the infrastructure industry and warehousing we see the pre engineered building sector grow to a Rs. 5000 crore industry. We at PEBS Pennar are creating the manufacturing, design, erection, and marketing infrastructure to meet the demand.”
PEBS Pennar has been set up by Pennar Industries to diversify into the design, manufacture, supply and erection of pre-engineered steel buildings for use in setting up industrial facilities, warehouses, commercial centres, multi-storied buildings, aircraft hangars and sports complexes. The new PEBS Pennar facility is being set up in two phases at a total estimated cost of Rs 105 crore to produce 50,000 tonnes per annum.
PEBS Pennar sources technical know-how from NCI Group, with sales of over USD one billion, and is one of the largest integrated providers of engineered building systems in the world.
Through its technical colloboration with NCI, PEBS Pennar is introducing the revolutionary Double-Lok® weather tight roofing system. PEBS Pennar is the first pre-engineered steel building company in India to offer such solutions to its customers.
PEBS Pennar is a member of the Indian Green Building Council (IGBC) and provides energy efficient green buildings, which qualify for LEED (Leadership in Energy and Environmental Design) points under the sustainable sites, materials & resources, energy & atmosphere and innovation & design categories.
Pennar’s net profit for the quarter ended June 2010 was Rs. 16.46 cr. reflecting an increase of 52% compared to the year before. Gross sales were Rs. 284.30 cr. reflecting an increase of 45%. The EBIDTA and PBT were Rs. 32.02 cr and Rs. 26.19 cr. On an annualized basis, basic EPS and cash EPS for the quarter amount to Rs. 5.40 and Rs. 6.96 per share. The Consolidated gross revenue of Pennar Industries and its subsidiary, Pennar Engineered Building Systems Limited (PEBS) for the quarter was Rs 318.97 cr. The EBITDA and net profit on a consolidated basis were Rs. 34.71 cr. and Rs 17.03 cr. Pennar Industries is the market leader in India for engineered metal products for customer sectors like railways, road construction, automotive, etc.
About Pennar Industries
Pennar Industries with FY09 revenues of Rs 730.7 crore and EBITDA of Rs 75.9 crore is the market leader in India for engineered metal products for customer sectors like railways, road construction, automotive, etc.
Cash EPS was Rs 4.52 and the basic EPS was Rs 3.11 for an equity share of Rs 5 face value for FY 09.
Pennar has a steady performance compared to the traditional steel sector companies (where global steel prices impact performance on a quarterly basis) by registering a growth in profits on Quarter-on-quarter basis for the last twenty consecutive quarters.
At the core of the turnaround and the success of the company is its strategy to diversify its product range by adding value added products like Rail Wagon and coach profiles and chassis, engineering components and road safety systems. The company is focusing on specialty profiles, sub-assemblies and fabricated components for transportation and infrastructure companies.
Pennar has recently set up a facility in Chennai to cater to Railways and automotive sectors.
Pennar is also launching a new subsidiary Pennar Engineered Building Systems (PEBSL) at a cost of Rs 1.05 billion. The 60,000 ton per annum capacity project, being set up in a 28-acre site at Sadishivpet in Medak district, about 45 km from Andhra, is expected to commence commercial production by October 2009.
PEBSL will be engaged in the design, manufacture, supply and erection of pre-engineered steel buildings and building components catering to the requirements of, among other things, industries, warehouses, commercial centres, multi-storied buildings, aircraft hangars and sports complexes.
Pennar currently has five plants located at Patancheru and Isnapur near Hyderabad, Chennai, Tarapur (Maharashtra) and Hosur (Tamil Nadu) with a total capacity of 184,000 TPA.
