Pennar Industries Ltd, formerly known as Pennar Steels, incorporated in Aug.'75, was promoted in the joint sector by J Naresh Kumar along with the Andhra Pradesh Industrial Development Corporation (APIDC). PSL manufactures cold-rolled coils (CRCs) of narrow width, upto 700 mm, which are supplied to the automobile and the white goods industries. In the automobile sector, the company's clients include Jay Bharat Maruti and Mahindra & Mahindra while, in the white goods sector, it supplies CRCs to Godrej, Kelvinator and Voltas. The automobile sector accounts for 50% of PSL's sales.
In 1989-90, the company undertook an expansion programme to increase the capacity from 12,000 tpa to 60,000 tpa in phases. In the first phase, its capacity was increased to 36,000 tpa, which was completed in 1990-91. In 1991-92, PSL set up a joint venture company -- Thomas & Betts Pennar, in collaboration with Thomas & Betts Corporation, US, to manufacture certain types of electronic connectors.
PIL diversified in 1993-94 by setting up a 3-MW wind energy farm near Coimbatore, Tamilnadu, and setting up a project to manufacture value-added pressed and fine blanked metal components, which became operational in 1994-95 and 1995-96 respectively. In Sep.'95, it received the ISO 9002 certification from RWTUV, Germany.
In 1999-2000, the company acquired manufacturing facilities in the cold forming sections/products of the Tube Investments of India Ltd at Tarapur and Chennai. Since more than 50% of the networth was fully eroded on 30th June,2001 the company become a sick industrial company.
Diversifying its products mix, the company continued its efforts to increase the proportion of value added products like cold formed metal profiles,engineering components and road safety systems.