Pennar Industries investing Rs 65 crore to double CDW tubes capacity

Engineering products and solutions company Pennar Industries said on Tuesday it is doubling its cold drawn welded (CDW) tubes manufacturing capacity.

The company is a leading supplier of these products to automotive and construction equipment sectors.

Pennar Industries will set up a greenfield plant here to produce CDW tubes of up to 150 mm diameter and the thickness of 10 mm. Currently, it has an installed capacity to manufacture 1,500 tonnes of CDW tubes per month.

The company will incur a capex of Rs 65 crore to take its CDW capacity to 3,000 tonnes per month. The new facility is expected to be operational in June 2020.

"The new facility will cater to hydraulic cylinder tube requirement of consistently growing construction and earth moving equipment sector, including propeller shafts for high payload heavy vehicles," said company's Vice President for Corporate Strategy K M Sunil.

"The precision electric resistance welded (ERW) tubes from the same plant will be supplied to structurals for airport, stadia, idlers for conveyors, axles for light and heavy commercial vehicles," he said in a statement.

With its global presence of sales and marketing offices in the United States and Europe, Pennar will export nearly 30 per cent of its CDW business volumes.

The company's portfolio has more than 1,000 precision-engineered products, 2,500 tools and dyes, over 600 customers and 8 manufacturing plants located at Patancheru, Sadashivpet, Isnapur, Velchal and Mallapur near Hyderabad, Chennai in Tamil Nadu and Tarapur in Maharashtra.