Pennar Industries, the flagship company of the Hyderabad-based Pennar group, which has posted over 40 consecutive quarters of growth and profitability, is now aiming to triple its revenues.

The company has scripted a medium-term plan as it diversifies into new product lines, expands value- added products and enters the US market with its engineering services through a subsidiary set up in Houston.

Aditya Rao, Vice-Chairman and Managing Director, Pennar Industries, said: “The company turned around in 2004-2005 and thereafter, there is no looking back as we posted steady growth of twice the industry and looking to sustain this growth over the next few years. Conservatively, we expect a compounded annual growth rate of over 30 per cent.”

“We had closed last fiscal with a total turnover of about ₹1,800 crore and our medium term plan is to grow the revenue more than three-fold to be a $1-billion company. This would be possible as we grow not just value added products in steel, pre-engineered building systems, renewable energy infra solutions and engineering services and increase exports,” he told BusinessLine .

The company has set up a subsidiary in the US-based in Houston to address the huge market. This will not just be to supply products, but also get into offering engineering solutions, which require design and local assembly.

The company's exports are about $ 4 million last year but this is projected to grow with the US base.

Pennar Industries has diversified from old legacy business to a number of value added products such as cold rolled forms, engineering components, pre-engineered building systems, water treatment and renewables.

“We have worked out a five-year strategic plan for each of the business, headed by a sector expert. We believe we will be able to achieve a turnover of over ₹6,000-6,500 crore over the next five years,” he said.

“The pre-engineered building division set up about five years ago has grown to be about ₹600 crore business where we have taken to high-rise buildings lately. The order book is strong and we expect to get repeat orders. We are also looking at pre-fab steel and cement structures,” he said.

The company has seven manufacturing units, five of them in Telangana, one in Chennai, Tarapur and one by way of lease in Baroda.

Additional plant is being considered to address the growing demand for high-rise building structures.

As an extension of the renewable business where Pennar supplies mounting and tracking systems, it had set up a 28-MW solar power plant, which it divested to Greenko.

“The company is now also offering solar rooftop solutions to commercial buildings as an extension of solar business.

“In one such project, a 1-MW solar rooftop plant is being set up for Schindler in Pune,” he said.