Pritika Engineering Expands Production Capacity with Land Acquisition

New Delhi, Sep 19 (PTI) Pritika Engineering Components Ltd (PECL) on Thursday said it has purchased a 87,000 square feet land in Hoshiarpur, Punjab for expanding its production capacity.

The land purchase, expected to be finalized by October 2024, will enable Pritika to expand its production capacity and diversify into new sectors, a company statement said.

A proposed capital expenditure of Rs 49.50 crore will support these expansion efforts, funded through a planned fundraise.

Additionally, the company has increased its authorized share capital from Rs 20 crore to Rs 25 crore to support this growth initiative.

The company is also exploring opportunities in the railways and defence components sectors to tap into additional revenue streams.

"This land acquisition marks a significant milestone in our journey. It not only strengthens our manufacturing capabilities but also positions us to capitalize on emerging opportunities in the market," Managing Director Harpreet Singh Nibber said.

In FY24, PECL's total revenue was Rs 87.67 crore, EBITDA was at Rs 11.92 crore, and PAT (net profit) at Rs 3.67 crore.

The company produces a wide range of components, including rear axle housing castings, machined front axle support, machined lift housings, among others. It has a strong track record of serving leading OEMs in the tractor and automotive sectors, including Escorts Kubota, Mahindra & Mahindra, Ashok Leyland, and others.