NEW DELHI: Six key verticals -- hydraulics, pre-engineered buildings, body-in-white components, tubes, engineering services, and process equipment – will drive growth of Pennar Industries for the next few years, says Vice-Chairman and Managing Director Aditya Rao.
“We have identified six verticals that will drive Pennar’s expansion in the coming quarters and years. These sectors offer large addressable markets with low penetration, providing ample opportunities for revenue growth, profitability, and margin expansion,” said Rao in an analysts call recently.
The Hyderabad-based company, however, recognised the need to reassess its legacy businesses, including solar, water treatment chemicals, and water EPC. Rao says instead of halting these operations, Pennar opted for a value-driven approach by leveraging its existing capabilities, assets, and industry expertise through a JV structure.
That is why it has entered solar panel manufacturing through a joint venture (JV) with Zetwerk. In collaboration with Zetwerk, Pennar Industries will transfer its solar business know-how, assets, customers, and order backlogs into the newly established JV. Zetwerk will hold a majority stake, while Pennar will retain a minority interest.
“This model allows us to unlock value from our pre-qualifications and presence in the solar sector without requiring substantial investments. The JV structure ensures that our existing capabilities and human capital are effectively utilised, while Pennar benefits from potential long-term value creation as the business scales,” Rao added.
Pennar Industries has committed a capital investment of Rs 18 crore into the JV. The company intends to replicate this approach for other non-core businesses, allowing it to focus on its prioritised growth areas.