The board of Pitti Engineering Ltd has approved an expansion plan to hike its installed capacity for sheet metal components from 36,000 million tonnes to 46,000 mt.
It will also expand its machining capacity from 2,42,600 hours to 4,05,600 hours. The estimated cost of these plans is Rs 190 crore.
This will be funded by internal accruals and long-term borrowings or by external commercial borrowings, the company said in a communication to the BSE.
The expansion will be taken up in phases at its Aurangabad and Hyderabad plants and completed within 36 months, it added.
Currently, the company is operating at around 70 per cent capacity. The enhancement in capacity will help it increase its capabilities and market reach and enhance in-house manufacturing of bought-out components. This, in turn, will help optimise the supply chain and increase the operating margins of the company, it stated.
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