Pitti Engineering Gears Up for Growth with ₹150 Cr Expansion 🚀

Hey investors and manufacturing enthusiasts! 👋 Big news from Pitti Engineering Limited (NSE: PITTIENG), a key player in the engineering components space, whose shares last traded at ₹880.1. The company is revving up for significant growth, announcing a substantial capacity expansion plan with a capital expenditure (capex) of ₹150 crore! 💰

So, what’s driving this big move? Well, Pitti Engineering, along with its wholly-owned subsidiaries Pitti Industries Private Limited and Dakshin Foundry Private Limited, is currently operating at impressive utilization levels – think 70% for sheet metal, 82% for machining hours, and 69% for casting capacity. With business demand on the rise and exciting growth opportunities ahead, it’s clear they’re nearing their limits and need more horsepower! 💪

This ₹150 crore investment isn’t just a number; it translates into some serious upgrades:

• Sheet Metal Capacity: Jumping from 90,000 MT to a whopping 1,08,000 MT. That’s a significant boost!
• Machine Hours: Expanding from 6,48,000 hours to 7,20,000 hours. More production time means more output.
• Foundry Capacity: Growing from 18,600 MT to 24,000 MT. Solidifying their casting capabilities.

How are they funding this ambitious plan? It’s a smart mix of internal accruals (money generated from their own operations) and debt. This phased expansion is set to be completed over the next 18 months, ensuring a smooth transition and minimal disruption.

This strategic expansion positions Pitti Engineering to better cater to increasing market demand and capitalize on future growth avenues. It’s a clear signal of their confidence in the market and their commitment to scaling up operations. Keep an eye on this one! 👀

source: Corporate Announcement

Join our Telegram for instant updates!