Pennar Industries Ltd manufactures a wide range of value added steel products that include cold roll formed steel profiles, industrial components, fabricated steel products, precision tubes and cold-rolled steel strips. The company recently acquired the assets of Wayne-Burt Petro Chemicals Pvt. Ltd (previously Bailey Hydropower Pvt. Ltd), a hydraulics cylinder manufacturing company in Chennai. Suhas Baxi spoke to Sandeep Menezes in this interview.
What is the strategy behind adding hydraulics as another export oriented business to Pennar’s portfolio?
Taking on export business and achieving 10 per cent revenue is our strategy and hence hydraulics business will add to this initiative.
India is emerging as an interesting destination for foreign companies looking to source hydraulics systems and solutions.
India is getting to be a global sourcing hub. We believe many international companies will source from India while also setting up a manufacturing base for themselves in this country.
The M&HCV, construction and mining equipment segments are not growing currently. How will this impact the hydraulics segment?
The market scenario is tough but it is a good time for new players to take on market expansion initiatives. We need to create growth in slowing markets.
How much growth do you foresee across India’s hydraulics sector?
We expect a growth rate of 6.4 per cent CAGR and infrastructure development, which is crucial to keeping the long-term growth story in tact, will drive the growth of hydraulic equipment. The key drivers would be widespread infrastructure development, growth of retrofit market, and emerging applications.
Has the recent rupee depreciation provided Indian hydraulics manufacturers an edge over global competitors?
Rupee depreciation will impart some competitiveness to exports but we see rupee depreciation as a temporary phase and it will strengthen in the near future. Improvement in overall economic parameters in the US and modest growth in Europe in last quarter would help hydraulic manufacturers.