Engineering products and solutions company Pennar Industries Ltd announced it is doubling its Cold Drawn Welded (CDW) tubes manufacturing capacity from 1,500 MT per month to 3,000 MT per month with an outlay of Rs 65 crore.
The Hyderabad-based Pennar is one of the leading suppliers of CDW tubes to the country’s automotive and construction equipment sectors.
The proposed plant will be a greenfield one that will come up near Hyderabad. Currently, Pennar Industries has an installed capacity to manufacture 1,500 MT CDW tubes per month.
The new facility, which entails a capex of Rs 65 crore, will produce CDW tubes of up to 150 mm diameter and thickness of 10 mm. The new facility is likely to be operational in June 2020.
KM Sunil, Vice President, Corporate Strategy, Pennar said, “The new CDW facility will cater to hydraulic cylinder tube requirement of consistently growing construction and earth moving equipment sector, including propeller shafts for high pay load heavy vehicles. The precision tubes from the same plant will be supplied to structurals for airports, Stadia, Idlers for Conveyors, Axles for LCVs and HCVs.”
With its backward integration of Steel Strips, Pennar would be producing high strength tubings. With its global presence of sales and marketing offices in US and Europe, Pennar will be exporting approximately 30% of its CDW business volumes.
Pennar Industries is an approved and the preferred tube supplier in domestic auto sector for many of OEMs in propeller shaft, shocker tube, chassis ladder frame, starter motor casing, seating solutions and the textile equipment manufacturing industry.