Pitti Engineering plans to merge its group company Pitti Castings Private with itself. The company is engaged in the manufacture of high-quality casting in grey iron, ductile iron, low carbon and alloy steel grades.
Pitti Engineering will issue and allot one equity share to the shareholders of Pitti Castings for every 55 equity shares held by them in PCPL. The consolidation is expected to be completed in the 12-14 months, on receipt of stock exchange and NCLT approvals.
Akshay S Pitti, Vice-Chairman and Managing Director, Pitti Engineering, said the strategic move strengthens the company’s position as a comprehensive and end-to-end machine components solution provider.
The merger will allow PEL to streamline its operations and offer enhanced value to its customers. By bringing together the different stages of the manufacturing process under one roof, the company can now provide a seamless and efficient experience from process design to production, he added.
The proposed merger will position PEL as a leading vertically integrated supplier of machine components. This would enhance PEL’s position before domestic and international customers to expand its business.
Having control over an integrated supply chain will ensure the highest quality standards are met at each stage. By reducing reliance on external suppliers and intermediaries, PEL can also accelerate production timelines, improve cost-efficiency, and maintain greater control over the entire value chain, said Pitti.