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Our Bureau

Hyderabad, Oct. 28 Pennar Engineered Building Systems Ltd (PEBSL), a group company of Hyderabad-based Pennar Group, is setting up a plant for design, manufacture, supply and erection of pre-engineered steel building and components.

While the Pennar Group has 73 per cent stake in PEBSL, the other 27 per cent stake is held by My Home Group.

“The plant will be located in Sadashivpet in Medak district, where the company has acquired 28 acres of land in Anakapalli and Chandapur villages,” Mr Nrupender Rao, Vice-Chairman, Pennar Industries Ltd, said while addressing a press conference here.

The project, which will have a capacity of 60,000 tonnes, is being set up at a cost of Rs 105 crore with an equity component of Rs 42 crore. “The rest will be financed through debt as convertible debentures or term loans,” Mr Rao said.

According to Mr P.V. Rao, President, Pennar Engineered Building Systems Ltd, the land development will commence towards end of October and the construction work is scheduled to begin from November.

“The production will start from June 2009 and (the plant) will be fully operational by December next year. At full-capacity utilisation, the company will have an annual sales turnover of Rs 500 crore,” he added.

PEBSL is targeting business segments such as industries, warehouses, commercial centres, multi-storeyed buildings, aircraft hangers and sports complexes.

Mr Rao also said that PEBSL will be entering the market with a two-tier model. “The higher tier model will have pre-galvanised purlins and standing seam roof sheeting with a 10-year leak-proof warranty. The economy model will have trapezoidal sheeting,” he said.

PEBSL is also in discussion with a leading US pre-engineered building company and is likely to conclude on a techno-marketing tie-up shortly.

Mr Rao said that the company has enough land to even double capacity in the future but will firm up plans only after completing implementation of the first phase.

More Stories on : New Projects | Engineering | Steel

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