Hyderabad based Pennar Industries Limited (PIL) is one of the fastest-growing mid-sized engineering companies in India involved in the manufacturing of Cold rolled steel strips, Precision tubes, sheet metal components, road safety systems and many more. Since inception, company has heavily modified its product line. The company has six manufacturing facilities across India. Apart from this, company has two subsidiaries – Pennar Engineered Building Systems (PEBS) and Pennar Enviro Limited (PEL). PEBS specializes in the proceedings of pre-engineered steel building and building components while PEL functions in the field of waste water treatment, fuel additives etc.
Now when things are expected to improve further with various reforms on the way and with the government’s ambitious program “Make in India”, we are expecting this sector to potentially increase. The entire business vertical of the company is linked with economic uptick. Steel, tubes and industrial products have huge application in automobile industries. Improvement in auto sector (improving car sales) is offering top line growth visibility. Further, they also have business interest in railways system and projects. Government thrust to modernize railways helped Pennar to improve their order book in this particular segment. Management is confident for an increased order flow from this segment. Over the last 5 years capacity had remained underutilized. With improving order flow, operating leverage plays out that will drive margin expansion.