/ -- Total store count to increase from current 11 to 42 by FY2020
Pennar Industries Limited (PIL), a leading value-added engineering products and solutions company, today announced its plans to scale up number of retail outlets for its branded building products. The retail stores for building products are branded as 'Build 360'. The company opened its first outlet in 2017 in Vijaywada and currently operates 11 stores in southern cities of Vizag, Nellore, Tirupati, Anantapuram, Khammam, Rajahmundry, Hyderabad and Tadepalligudem; besides two stores in Vijayawada.
PIL's branded building products initiative has found a good traction in the cities of its presence, and encouraged by the response, the company is planning to gradually ramp up the business by opening more stores. By the end of FY2019, the company will have six more stores, taking the total store count to 17. These stores are in Vanasthalipuram, Kurnool, Kakinada, Guntur, Warangal, Karimnagar. In fiscal 2020, PIL has plans to set up 25 additional stores across Karnataka, Tamil Nadu and Telangana. PIL is working on a 5-year business plan of setting up 100 'Build360' stores by FY2023 and expects to report significant revenue growth in this segment.
Mr. K. M. Sunil, Vice President - Corporate Strategy, Pennar Industries Limited, said, "Organised retailing of ready-to-use steel building products is on the rise. Pennar is known for its innovative and customised value-added engineered products, and building products retailing is an extension of our capabilities. Our brand 'Build360' has been well accepted by the trade intermediaries as well as end-users for the quality and the product variety. We will expand our retail network in a very cost-efficient manner and ensure that the business generates high return on capital."
Currently, 'Build360' outlets sell PIL's in-house product range such as round and section pipes, sheets and plates special sections, structural steels, and accessories such as roofing screws, drilling and self-tapping screws, UPVC hardware, turbo ventilators and roofing material. Going forward, the stores will house third party products such as TMT steel, paint, cement, wall putty, drill machines, agricultural tools, etc.
"The typical customers for 'Build360' are builders, contractors, fabricators, furniture makers, lorry / bus body builders, railways contractors, small pre-engineered building customers, etc. For these customers, our stores are a 'Go-to' destination for most of their requirements. And as we interact more with the end-users, more we can cater to their demands by bringing in new products," added Mr. Sunil.
About Pennar Industries Limited:
Pennar Industries (NSE: PENIND) (BSE: 513228) is India's leading value-added engineering products and solutions company. The Company has a strong presence across growth sectors in India through four business units Railways, Tubes, Industrial Components and Steel Products, and its subsidiary companies, Pennar Engineered Building Systems Limited, Pennar Enviro Limited and Pennar Global Inc. Pennar's all manufacturing units are ISO 9001:2008-certified and the Company has presence across 10 industry verticals. Pennar has over 30 years of rich experience and more than 1,000 precision engineered products, 2,500 tools and dies, over 600 customers and seven manufacturing plants located at Patancheru, Sadashivpet, lsnapur, Velchal and Mallapur near Hyderabad, Chennai in Tamil Nadu and Tarapur in Maharashtra. For more information, please visit http://www.pennarindia.com
DISCLAIMER:
This release contains statements that contain "forward looking statements" including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Pennar's future business developments and economic performance. While these forward looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macroeconomic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance.
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