Pennar Industries to double its CDW tubes manufacturing capacity

Pennar Industries has informed the bourses on Tuesday that it has doubled its Cold Drawn Welded (CDW) tubes manufacturing capacity. Pennar is one of the leading suppliers of CDW tubes to India’s automotive and construction equipment sectors.

Pennar Industries will set up a greenfield plant at Hyderabad for the additional CDW manufacturing capacity. Currently, Pennar Industries has an installed capacity to manufacture 1500 MT per month of CDW tubes. The new facility will produce CDW tubes of up to 150 mm diameter and the thickness of 10 mm. The company will incur a capex of Rs 65 crore to take its CDW capacity to 3000 MT per month. The new facility is expected to be operational in June 2020.

As per the company’s management, the new CDW facility will cater to hydraulic cylinder tube requirement of consistently growing construction & earth moving equipment sector, including propeller shafts for high pay load heavy vehicles. The precision ERW Tubes from the same plant will be supplied to structurals for airport, stadia, idlers for conveyors, axles for LCV and HCV.

With its backward integration of steel strips, Pennar would be producing high strength tubing up to UTS of 900 N/mm2. With adverse diameter to thickness ratio, coupled with bright annealing facility will give added advantage and offer customers value added services. With its global presence in sales and marketing offices across US and Europe, Pennar will be exporting approximately 30 per cent of its CDW business volumes.

Pennar Industries is an approved and the preferred tube supplier in domestic auto sector for many of OEM’s in propeller shaft, shocker tube, Chassis Ladder Frame, starter motor casing, seating solutions and the textile equipment manufacturing industry.

On Tuesday, stock of Pennar Industries closed at Rs. 29.15. It made intraday high and low of Rs. 29.50 and Rs. 28.45, respectively.