PNN
Mohali (Punjab) [India], November 29: Pritika Group, one of the North India based leading manufacturers of precision machined components for the tractor and Heavy Commercial Vehicles in India announced the start of commercial production of the ordered components from a leading multinational Tractor Manufacturer in India after successful completion of inspection and trials at the customer end. The components include - Hydraulic Lift Housing and Axle Housing.
The total business value of the above said component will be approximately Rs.18.00 crores per annum. At the same time, these orders have a long term visibility spanning to over next four to five years. Total value for the span of five years comes to around Rs. 90 crore.
Pritika Engineering Components Limited is a subsidiary of Pritika Auto Industries Ltd. which holds 70.81% stake. The Pritika Group is celebrating its Golden Jubilee (50 years) this year.
CARE Ratings Ltd. has reaffirmed Stable credit Rating for Pritika Auto Industries Ltd. and Pritika Engineering Components Ltd.
Highlights:
* Pritika Group will utilize combined rights issue proceeds of Rs. 99.80 crore of Pritika Auto & Pritika Engineering to fund its expansion including railway component manufacturing, debt reduction etc
* Tractor industry is expected to grow at double digit in H2FY25
* M&M, Escorts Ashok Leyland, Mahindra Swaraj, TAFE, Swaraj are some of its major clients
* The Pritika Group is celebrating its Golden Jubilee (50 years) this year.
* Pritika Engineering is a subsidiary of Pritika Auto Industries Ltd. which holds 70.81% stake.
Pritika Group is planning to raise around Rs. 99.80 crore from the rights issue proceeds of the Pritika Auto and Pritika Engineering (Right issue proceeds of Rs. 49.80 crore of each entity). The Issue proceeds will be utilized to fund its expansion including railway component manufacturing, debt reduction.
Pritika Auto Industries Ltd. had done the Preferential Issue of Equity Shares, the funds of which has been utilized for the expansion of Plants. Pritika Auto Industries Limited has recently announced the issuance of right shares aggregating upto Rs. 49.90 crore to fund its expansion plans. The company is also planning to reduce its debt in due course of time.
Pritika Engineering Components Limited has also recently announced the issuance of right shares aggregating upto Rs. 49.90 crore to fund its expansion into railway component manufacturing and its existing business. The company is also focusing to contain its debt.
GREEN SHOOTS IN TRACTOR INDUSTRY
One of the leading Tractor OEM has in it's Q2FY25 Presentation mentioned that H2FY25 tractor industry is expected to grow in double digits.
The Group has long standing relations with its clients for almost 50 years. It has PAN India presence & some of its major OEM clients are:
* Escorts Kubota Ltd.
* Tractor & Farm Equipment Ltd.
* Mahindra & Mahindra Ltd.
* Ashok Leyland Ltd.
* Mahindra Swaraj.
* Swaraj Engines Ltd.
* Tafe Motors & Tractors Ltd. (Eicher Tractors)
* Brakes India Ltd.
* SML ISUZU Ltd.
* Knott - Vortex Pvt. Ltd.
* CNH Industrial (India) Pvt. Ltd. (New Holland Tractors)
* International Tractors Ltd. (Sonalika)
Pritika Auto has finalised a significant order worth INR 30 crore per annum from country's leading OEM tractor manufacturers. This order represents a strong endorsement of the company's capabilities in delivering high-quality components for the agriculture sector. The order involves the supply of approximately 250 tons per month of new large components designed for tractors. These new components will weigh over 78 kilograms, underscoring Pritika Auto's expertise in producing robust, heavy-weight products. This latest order is a testament to Pritika Auto Industries' Limited commitment to innovation and excellence in meeting the evolving needs of the automotive industry, particularly in the agricultural segment.
Company has recently announced highest ever monthly dispatch, reaching an impressive 1350 metric tons in September, 2024. Company has successfully adopted new technology and with this it has shifted its focus towards higher-weight products which fetch relatively higher margin. The trial batches produced using this advanced technology have been well received by Original Equipment Manufacturers (OEMs), leading to the commencement of commercial production. This achievement underscores PECL's ability to adapt to market demands and deliver high-quality products. Looking ahead, the demand outlook for Pritika Engineering Components Limited remains strong. The Company is confident in its ability to leverage the new technology to enhance its production capabilities and meet the evolving needs of its customers.
About Pritika Auto Industries Limited
Pritika Auto Industries Ltd. is a flagship company of the Pritika Group of Industries which was set up in 1974 by Raminder S. Nibber, manufacturing small forgings. Over the last four decades and under Nibber's visionary leadership, the Company has established itself as a robust and reliable brand in its market, specializing in machined castings and automotive components. A quality driven organization, Pritika produces world class components from modern facilities. Pritika has manufacturing facilities situated at Derabassi, Hoshiarpur and Mohali (Punjab), and Tahliwal (Himachal Pradesh) with a total capacity of over 75,000 metric tons per annum (MTPA).
Catering primarily to tractors and commercial vehicles, Pritika focuses on expanding and diversifying its product portfolio. The Company manufactures a wide range of products such as axle housings, wheel housings, hydraulic lift housings, end cover, plate differential carrier, brake housings, cylinder blocks, and crank cases, among others. Pritika is one of the biggest component suppliers in the tractor segment of the automobile industry in India and supplies to OEMs like M&M Swaraj, Swaraj Engines Ltd, TAFE, Escorts, SML Isuzu, TMTL, Ashok Leyland, New Holland Tractors India Ltd., Brakes India etc. The Company's vision is to provide products which meet customer's quality requirement constantly at competitive prices.
(ADVERTORIAL DISCLAIMER: The above press release has been provided by PNN. ANI will not be responsible in any way for the content of the same)
