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Electrical laminations maker Pitti Laminations Ltd (PLL) is set to complete its Rs 31 crore expansion of its existing manufacturing facilities near Hyderabad in the first quarter of next fiscal.
The expansion will see its capacity rise from the current level of 25,000 tonnes per annum to 35,000 tonnes.
The expansion is in line with the rise in demand for electrical laminations used for making all types of motors for a wide range of applications, including alternators, DC machines and Railway lighting alternators. The current domestic consumption of laminators is estimated at 300,000 TPA, with about 200,000 tonnes coming from about four to five players in the organised sector and the remaining from the unorganised sector.
“We are focussing more on value-added assembly products used for special purpose equipment needed by the railways and aviation sector. This category of products at present account for 50 per cent of our turnover,” Mr Akshya Pitti, Vice Chairman and MD, told Business Line.
PLL is going ahead with the acquisition of a foundry unit in Andhra Pradesh, which will be hived off into a subsidiary. “We are close to finalising the deal, which we will announce by April 2012,” Mr Pitti said without disclosing the name of the target company or the deal size.
The foundry subsidiary will retain a minority stake of the original promoters.
“We today procure 180 tones of castings per month as raw material for our machining unit, which involves higher costs. The target company presently sells 6,000 tonnes of casting annually,” Mr Pitti said.
PLL, which exports 50 per cent of its production to the North American, Canada and Mexican markets, does not have plans to set up a new facility in the next two to three years,he said.
Better realisations from the export market and increased domestic sales pushed up PLL's net profit for the December 31 quarter to Rs 6.11 crore (Rs 2.61 crore), while revenues rose to Rs 103.23 crore from Rs 69.92 crore in the year-ago quarter. “We hope to end the fiscal with total revenues of over Rs 400 crore, as against Rs 266 crore last fiscal,” he said.
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