PTC Industries to spend Rs 300 crore on capacity expansion – ET Infra

MUMBAI: PTC Industries Ltd plans to spend ₹300 crore on capacity expansion over the next two-three years as it aims to get as much as two-thirds of its revenues from the local defence aerospace business over the medium term, chairman and managing director Sachin Agarwal said.

The Lucknow-based company manufactures engineering components for critical and super-critical applications, and has already invested about ₹300-₹350 crore on building capabilities, including technology, over the last five-six years.

Earlier listed only on the BSE, the company made its debut on the National Stock Exchange on Friday, where it closed nearly 2% higher at 3,070.00 rupees. The shares also hit a lifetime high of 3,160.05 rupees on Friday.

The company got about 15% of its revenue from the defence aerospace business in 2022-23 (Apr-Mar), and plans to take this to as much as 70% over five years. “The first phase was investing in capability, now we are investing in capacity, we are scaling it up,” Agarwal told ET in an interaction.

The company has manufacturing units in Gujarat and Uttar Pradesh, and has recently bought 50 acre of land in the Uttar Pradesh Defence Industrial Corridor next to the 200-acre unit of BrahMos Aerospace.

“One of the expansion plans in terms of capacity is building a huge titanium material manufacturing facility, and then taking all this defence aerospace titanium and super alloy casting business, and scaling it up by five times over there,” Agarwal said.

The upcoming manufacturing unit, with a production capacity of 6,500 tonne of titanium, is close to the company’s current facility in Uttar Pradesh, and construction is expected to be completed by the end of the year. The installation of equipment is slated for the first quarter of 2024-25 (Apr-Mar) and production is expected to start in about one and a half years.

India currently imports all its titanium requirements. PTC Industries’ unit is expected to be the first plant in the country for manufacturing titanium material, using recycled titanium, which it will source both locally and internationally.

Titanium finds wide application in aerospace and naval operations because of being lighter and stronger than steel, and its non-corrosive nature, Agarwal said. The company recently signed MoUs with companies like Bharat Dynamics and Hindustan Aeronautics to make titanium parts for engines.

PTC Industries currently has an orderbook of around ₹120 crore, an all-time high, and is targeting revenue growth of over 20-30% in the current financial year as compared to the previous year. The company’s net profit more than doubled in FY23, while operating margins were a little over 29%.

  • Published On Jun 12, 2023 at 06:35 PM IST

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