Pitti Engineering plans to invest ₹90 crore over the next two years in the second phase expansion of its Aurangabad plant.
The plant, set up with ₹160 crore and inaugurated last fiscal, will have its capacity increased from 26,000 tonnes of electric laminations and 36,000 hours of machining with the proposed investment. Besides the Aurangabad facility, the company has two plants in Hyderabad.
On Monday, announcing the proposed ₹90 crore investment, the company said it had also invested ₹40 crore on modernising the facility in Hyderabad. While the Hyderabad plants, with a capacity of 10,000 tonnes of electric laminations and 2,11,000 hours of machining, cater to the export markets, the Aurangabad plant is focussed on the domestic market and was set up to be close to customers such as Cummins, GE and Siemens and their affiliates.
The investments made and proposed come in the backdrop of Pitti Engineering bagging orders worth ₹500 crore from GE India.
The order is for supply of traction motor related products, along with some other products to be used in locomotives, for catering to the requirements of Indian Railways and to be supplied over 10 years, a release said.
Railways’ plans
The company is upbeat on Indian Railways’ plans to increase domestic content in procurement as part of the emphasis on Make in India.
It expects more business for precision-engineered products that find use in locomotives as well as urban mass transit systems in the coming years as modernisation and localisation of sourcing of such parts rises.
Indian Railways’ capital expenditure had been growing steadily and touched an all-time high of ₹1.58 lakh crore this fiscal from ₹1.33 lakh crore last fiscal, Pitti Engineering said, citing government data.
Vice-chairman and MD Akshay Pitti said there were early signs of firms moving engineering tools sourcing to India from China and the shift was expected to catch pace in the next three years.
Formerly Pitti Laminations, the company is engaged in manufacturing of electrical steel laminations, motor cores, sub-assemblies, diecast rotors and press tools. Over the years, it has diversified into other products like castings, steel fabricated parts and machined components and rotor assemblies and will further diversify in to forgings. It supplies range of engineering products to modern locomotives.
