PENNAR INDUSTRIES LIMITED (PIL), is one of the leading engineering organisations in India well known for its expertise in providing engineered products and services. It began operations in 1988, with a strategic decision to establish first manufacturing plant at Isnapur, near Hyderabad with an installed capacity of 30,000 MTPA to manufacture Cold Rolled Steel Strips (CRSS). Pennar increased its manufacturing capacity to 50,000 MTPA in 1997.
The series of strategic acquisitions and expansion plans, most notably among them being acquisition of Nagarjuna Steel Ltd.; Press Metal, a unit of Tube Investment (TI) near Mumbai and, the more recently, the assets of Wayne Burt Petrochemicals, erstwhile Bailey Hydro, for venturing into Hydraulic Cylinders segment. They have also established a new manufacturing facility at Chennai and have set up an assembly unit at Hosur, near Bangalore to meet the requirements of Auto Components.
Currently, the company is engaged in the following segment:
- Steel (Cold Rolled Steel Strips and Formed Sections)
- Tubes (Electro Resistance Welded and Cold Drawn Welded Tubes)
- Systems and projects (Railways and Solar Module Mounting Systems Components)
- Industrial Components (General Engineering and Automotive Components)1500 Precisely Engineered Products
PENNAR ENGINEERED BUILDING SYSTEMS (PEBS), the listed subsidiary, is engaged in the design, manufacture, supply and installation of pre-engineered steel buildings and building components. PEBS Pennar’s factory was the first in India to receive a gold rating from the Indian Green Building Council and is in the forefront of the movement for a sustainable future.
The company’s clients include UltraTech, L&T, HCC, P&G, Godrej, Dr. Reddy’s Laboratories, ABB, JSW, Schwing, Stetter, Honda, Toyota, Ambuja Cement, Bharat Biotech, My Home Industries, Schneider Electric, Reliance, IOT Infra, Volvo, Toyotsu, Jayabheri, ACC, Schindler, Audi, Hindustan Unilever and MRF Tyres among others.
PENNAR ENVIRO LIMITED (PEL), an unlisted subsidiary, deals with Water and Environment Infrastructure business to provide turnkey solutions viz., Water Treatment Plants (WTPs), Sewage Treatment Plants (STPs), Effluent Treatment Plants (ETPs), Effluent Recycling Plants (ERPs), Zero Liquid Discharge Plants (ZLDPs) etc. PEL is pioneer in the field of additives, supplying specific premium high technology additives based on fuel characteristic requirements and specific performance enhancements.
Pennar Renewables Private Limited (PRPL), is an unlisted subsidiary (80%), engaged in the commercial generation of solar power (28 MWDC) in Telengana Ltd at a PPA of Rs 6.45/kwh. PIL invested Rs 49.54 crore in Pennar Renewables Private Limited (formerly M/s New Era Enviro ventures (Karimnagar) Private Limited), after the said investment it has became subsidiary with effect from October 14, 2015. On May 16, 2016, M/s New Era Enviro ventures (Karimnagar) Private Limited has been renamed as Pennar Renewables Private Limited. During the financial year 2016-17, the company has disinvested Rs 9.4 crore through sale of 9,45,846 shares of Rs 10 each for Rs 99.47 to Sharp Ventures Private Limited.
The board of Pennar Industries after consultation has decided to exit the business as the IRR for the project – while attractive and as per industry norms – is lower than the CAPEX initiatives that PIL has.
Consequently, PIL has entered in definitive agreement with a third party for transfer of its entire shareholding held in subsidiary Pending closing of conditions contained in the agreement the accounting effect is not given as disclosed in Dec 2017 quarter results. The PIL will be able to generate cash from the sale of Pennar renewable.
The Group infrastructure consists of:
- 6 Manufacturing Plants across India (Patancheru and Isnapur in (TS) ,Baroda (GJ), Tarapur (MH), Chennai and Hosur (TN))
- 3000 tools and dies
- 2500 employees
- 600 customers
- Manufacture facilities of 1,500 product portfolio
Merger of PEBS and PEL with PIL from the Appointed Date 1st April 2018. The Swap ratio for amalgamation of PEBS and PEL is 23:13 and 1:1 respectively.
Please Subscribe to read the full article.