The Hyderabad-based Pennar Profiles (PPL)is a part of the Pennar group. The other major companies in the group include Pennar Aluminium, Pennar Patterson Securities and Pennar Steel. In Dec.'93, the management of the company was taken over by the Pennar group. With effect from Mar.'94, the name of the company was changed from Progressive Aluminium to Pennar Profiles (PPL).
PPL manufactures aluminium extrusions, 70% of which is used in architecture and the remaining 30% goes to general industrial customers. These extrusions find application in white goods, electronics, consumer durables, telecommunication, floriculture sheds and button mushroom projects. It has reputed clients such as Eureka Forbes, Kirloskar, Gujarat Vacuum Coaters, etc.
PPL exports 25% of its production to the UK and Germany. It has an export tie-up with Metallgesellschaft, Germany. It has increased production from 350 tpa to 600 tpm (cost : Rs 4.50 cr). PPL also produces irrigation sprinkler systems.
During the year 1995-96, the company has completed modernisation & expansion. 900 Tonne extrusion press was installed & the capacity of connected handling equipment was increased from 350 TPM to 500 TPM. It also made a Rights issue of 4,07,000 non-convertible debentures of Rs 100 each for cash at par with detachable equity warrants in the ratio of 1:1 to be exchanged with equity shares of Rs 10 each at a premium of Rs 5 per share.
During 1996-97, the company has been accredited with ISO 9002 certification by KPMG Peat Marwick LLP, USA.
Due to continued financial difficulties and incurred losses in the year 1998-99, the company is declared as a Sick company by BIFR and has appointed Industrial Finance Corporation of India Limited (IFCI) as the Operating Agency for rehabilitation.
The company's proposal to obtain financial assistance through External Commercial Borrowing (ECB), due to its high export performance in the international market, did not materialise due to non-availability of lender's guarantee. Subsequently, O & S Metallhandel, GmbH, (OSMG), a German company active in trade of aluminium extrusions, showed interest in the revival of the company and has offered to undertake exports of aluminium extrusions manufactured by the company upto 400 tonnes per month.
The rehabilitation scheme prepared by IFCI, approved by the Board and submitted to BIFR recommends induction of OSMG, which is part of the group whose flagship company is Danmetal A/S (Denmark), as a co-promoter and waiver of entire outstanding interest dues payable to Financial institutions and banks through reliefs and concessions. Pending BIFR sanction, other measures are one time settlement of dues towards FIs and banks, amounting to Rs.164 million, payable in three annual instalments including upfront payment, reduction in equity share capital, part conversion of loan into equity. It has also recommended investment by OSMG and their associates to the tune of Rs.59.8 (US$ 1.30) million of which Rs.32.2 million will be towards equity and the balance as unsecured loan which has been agreed to by OSMG.