Pritika Engineering Expands Production Capacity with New Land Acquisition in Punjab

Pritika Engineering Components Ltd (PECL) has acquired an 87,000 square feet land in Hoshiarpur, Punjab to enhance its production capacity. The expansion, backed by a Rs 49.50 crore capital expenditure, aims to diversify into new sectors. The company is also exploring opportunities in the railways and defence components sectors.

Pritika Engineering Components Ltd (PECL) on Thursday announced the acquisition of an 87,000 square feet land in Hoshiarpur, Punjab, to boost its production capacity.

Expected to be finalized by October 2024, this land purchase will enable the company to expand and diversify into new sectors, according to a company statement.

A planned capital expenditure of Rs 49.50 crore, funded through a pending fundraise, will support these expansion efforts. Additionally, PECL has raised 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 access new 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 market opportunities,'' said Managing Director Harpreet Singh Nibber.

In FY24, PECL reported total revenue of Rs 87.67 crore, EBITDA of Rs 11.92 crore, and a net profit of Rs 3.67 crore.

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

(With inputs from agencies.)