Akshay Pitti, Vice Chairman and Managing Director
When India is getting ready for the next wave of growth for the next decade, infrastructure is the key growth area where in India needs to work on various segments of infrastructure from roads to data centres, capex revival across the sectors, localisation of key new generation businesses and building ecosystem for their growth and efficient transportation.
Data centres have become reality in the last two to three years with a current capacity at 600 megawatt and plans are afoot to add another 2,500 megawatt by FY26, which is a fourfold increase from the current capacity. Pitti Engineering is in the manufacturing of components for generator sets for data centres and have been supplying to Cummins India for the last three years and the company is witnessing cumulative volumes of orders on a month on month basis.
As the additional capacities come up in the segment the demand for generators will go up. For Pitti Engineering’s generator set segment is going to contribute a large chunk of business as the demand is increasing to provide access of uninterrupted power supply for crucial applications like data centers, hospitals, 5G Network, high rise residential and commercial complexes.
Mr. Akshay Pitti, Vice Chairman and Managing Director said that we are witnessing good demand from across the sectors be it industrials like Cement, Steel and Sugar, datacenters, power generation and locomotives. These four segments have remained strong for us. Increased cash flows will result in debt reduction in the next two years.
We are increasing share of value-added products involving sub-assemblies, Die-cast Rotors, Shaft insertion, machining and core-dropped stators. This is not only increasing share of pie of business we have been receiving from our customers and also increasing stickiness.
We are also Increasing Company’s share in small industrial laminations for application in consumer durables and urban transportation.
As the overall situation on the supply side is better than the first quarter, we are expecting good growth and better results during the rest of the current year”
Major industries like Cement, Steel, Power and Sugar have braced for expansion, some capacities are already announced and work has started and Pitti Engineering sees good order flow from these major sectors. All the major national and local cement companies are adding capacities without exception and the expected growth in the demand is anywhere between 20 to 25% as per the industry estimates. This growth is witnessed on account of increased budgetary allocation for infrastructure, revival in urban housing followed by rural housing on account of good mansoons.
Steel companies are looking for expansion on the back of increased demand coupled with increase in prices. Companies have announced 30 to 35 million tons capacity likely to be added by FY24, which is 25% of the current capacity in the country. Like Cement, Pitti Engineering supplies components for Steel sector and expects current growth in order flow to sustain for the next three to five years.
Sugar as an industry is turning around and had started exporting Sugar, there is good demand expected from this sector too.
The growth in power sector was sluggish for a long time, with increasing economic activity, Pitti Engineering is experiencing good order flows from wind generators market. The power demand has been increasing, as overall economic growth is picking up. As Pitti Engineering caters to Hydro, Wind and thermal power generators, the segment is growing rapidly with both increasing household and industrial power needs of the country and across the World.
Implementation of energy conservation norms IE-3 for electrical motors throws open huge replacement market for the company.
Locomotives is another major segment which forms part of major revenue generator for the company. User segments like Mass Urban Transport, Freight Rail and Passenger Rail are growing in both India and across the World, following the recent change World order and increased focus on infrastructure development and fiscal easing to spend on bringing back the overall growth.
Under locomotives segment, Pitti Enginering has received orders from Metro project from Indian Railways through ABB Bombardier and Mitsubishi. The company is expecting robust quantities in this segment with further RFQs are floated.
Disclaimer: Content Produced by Pitti Engineering