Pitti Engineering Greenlights 1.50 Billion Rupees Capex for Major Capacity Boost

Updated: August 07, 2025 22:02

Image Source: Pitti Engineering

In a significant move reflecting confidence in future demand, Pitti Engineering Limited has approved a capital expenditure of Rs150 crore (1.5 billion rupees) to enhance its manufacturing capacities. This investment was greenlit at the company’s board meeting held today, August 7, 2025, and will also include its wholly-owned subsidiaries: Pitti Industries Private Limited and Dakshin Foundry Private Limited.

Powering Up for the Next Growth Phase

Pitti Engineering, a leading player in precision-engineered products, is strategizing to keep pace with rising market requirements and optimize production to match robust customer demand. The fresh capex comes at a time when the company’s existing capacities are operating near optimal utilization levels.

Key Highlights

The company will invest Rs150 crore to scale up sheet metal, machining, and foundry operations across the group.
The capex will be financed via a mix of internal accruals and debt, with completion slated in a phased manner over 18 months.
This expansion responds to growing customer orders and long-term industry trends across railways, green energy, power generation, and other heavy engineering segments.

Capacity Expansion Blueprint

Sheet Metals:

Targeted increase from 90,000MT annually to 108,000MT.
Current utilization reportedly stands at 70%, emphasizing the need for added bandwidth.

Machine Hours:

Will be scaled up from 648,000 to 720,000 hours per year.
Present utilization for machining is robust, at around 82%.

Castings:

Planned enhancement from 18,600MT to 24,600MT per year.
Foundry utilization currently at 69%, signaling readiness for higher throughput.

Implementation & Funding:

The capex rollout will be executed in a phased approach, ensuring minimal disruption to ongoing operations.

Funding involves a prudent mix of company-generated cash flows and debt leverage, balancing growth ambition and financial discipline.

The strategic utilization of internal funds signals healthy cash generation and operational strength.

Rationale: Riding the Demand Surge

With utilization rates approaching threshold levels in all core product lines, Pitti Engineering aims to serve a larger slice of the expanding industrial pie.

Sheet metal laminations, precision machining, and advanced castings are seeing strong off-take from sectors like electric railways, wind energy, pumps, and large industrial motors.

The expansion ensures that the company can not only meet higher volumes but also maintain stringent quality standards required for global and domestic customers.

Looking Ahead: Market Pulse and Strategic Edge

The increased capacities are designed to position Pitti Engineering and its subsidiaries ahead in a competitive landscape, enabling faster order turnaround and entry into new market segments.

The move aligns with India’s thrust on manufacturing, clean energy, and infrastructure, offering the company both scale and flexibility for future growth.

Source: Moneycontrol

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