Pavna Industries acquires land parcel in Pantnagar

Pavna Industries Limited (NSE: PAVNAIND. BSE: 543915), one of India's leading automotive parts manufacturers has acquired a land parcel of 4335 sq. meters at the Integrated Industrial State, Pantnagar, Uttarakhand for its upcoming greenfield plant that will primarily cater to the demand of die cast components.

Pavna Industries plans to utilize the logistical and cost benefits of the region to strengthen its presence in the domestic automotive sector and streamline its operations in serving Bajaj Auto, a key client. The acquisition involves leveraging supply chain synergies and minimizing overhead expenses. Pantnagar has gradually become a notable hub for the automotive industry, with prominent companies such as Bajaj Auto Limited and Ashok Leyland establishing a presence in the area.

The company as a part of its ongoing and future expansion plans is setting up the new plant, with an aim to attract business from various original equipment manufacturers (OEMs) in and around Pantnagar. This strategic move is particularly significant as the auto sector is one of the priority sectors in Uttarakhand. Expanding operational capacity not only positions the company to better serve and attract a broader range of OEMSs in the region but also enhances its market presence.

Earlier this year the company bagged an order from Ola Electric for supply of ignition switches and latches and launched its products in Bangladesh.

Commenting on the acquisition Mr. Swapnil Jain, Managing Director, Pavna Industries Ltd. remarks, "This acquisition signifies our move to our own premises in Uttarakhand, transitioning from our current rented facility. The plant which will be nestled within Pantnagar's thriving industrial ecosystem, will enable us to provide superior service, particularly to Bajaj Auto and aligns with our long-term goal of offering better prices to our customers. Pantnagar's supportive government policies and growing industrial cluster attract major players, creating a collaborative business environment. We are optimistic about the automotive industry's future and committed to supporting the 'Aatmnirbhar Bharat' initiative by manufacturing highquality indigenous components in our technologically advanced plants."

Pavna Industries currently has 9 facilties at three three locations- Aligarh, Aurangabad and Pantnagar along with strategically located distribution network in 17 states.

Shares of Pavna Industries Limited was last trading in BSE at Rs. 551.30 as compared to the previous close of Rs. 548.00. The total number of shares traded during the day was 4007 in over 186 trades.

The stock hit an intraday high of Rs. 561.00 and intraday low of 535.00. The net turnover during the day was Rs. 2223412.00.

Source : Equity Bulls

Keywords

PavnaIndustries INE07S101020 AutoComponents Equipments LandParcel Acquisition Pantnagar Uttarakhand GreenfieldPlant