### **Overview** Pitti Engineering Limited (PEL) is India’s largest manufacturer and exporter of electrical steel laminations and a leading integrated engineering solutions provider. Established in **1983 by Shri Sharad B. Pitti**, the company has evolved from a niche lamination producer into a full-service, vertically integrated manufacturer of precision-engineered components for rotating electrical equipment, machined parts, and complex castings. With a strong presence in both domestic and international markets, PEL serves critical industries including rail, renewable energy, automotive, data centers, and industrial motors. --- ### **Core Business & Market Position** - **Market Leadership**: - Largest manufacturer and exporter of electrical steel laminations in India. - Supplies all major domestic motor manufacturers and is a preferred vendor for global OEMs. - Holds an estimated **10% market share** in India’s 700,000-tonne electrical lamination market. - **Revenue Diversification (as of FY25)**: - **Rotating Electrical Equipment**: ₹1,040.76 crores - **Casting Division**: ₹289.27 crores - **Machined Components**: ₹232.93 crores - **Total Income (FY25)**: ₹1,743 crores - **Export Strength**: - Exports account for **~30–33% of revenue**, with ~25% of revenue tied directly or indirectly to the U.S. market. - Strong footprint in **North America (U.S., Mexico), Europe (Germany), and Southeast Asia (Vietnam)**. - Expected European revenues to grow from ₹50 crores (current) to ₹150–200 crores within two years. --- ### **Strategic Focus & Transformation** PEL is undergoing a strategic shift from producing **basic, high-volume laminations** to offering **high-margin, value-added, system-level solutions**. This transformation is driven by: - **Vertical Integration**: In-house capabilities across tooling, lamination, casting, machining, fabrication, heat treatment, coating, and assembly. - **End-to-End Solutions**: Positioned as a “one-stop shop” offering ready-to-wind motor assemblies, fabricated sub-assemblies, and fully built-up rotors. - **Margin Expansion Target**: Aiming for **EBITDA margins of 16.5–17% (excluding other income)** by FY26–27. The company emphasizes reducing customer procurement complexity by delivering 99% ready-to-use components, thereby increasing customer wallet share and strengthening long-term partnerships. --- ### **Verticals & Product Portfolio** PEL operates across three primary verticals: 1. **Rotating Electrical Equipment** - Electrical steel laminations, stator & rotor cores, pole laminations - Assembled stator/rotor packs with or without powder coating - Die-cast rotors (up to 150 kg), copper build-up rotors, shaft-inserted rotors - Press tools and jigs for motor manufacturing 2. **Machined Components** - Gear cases, shafts (including high-speed planetary shafts), axle boxes - Stator frames, suspension units, cannon tubes, rear wheels for mining 3. **Casting Division (via Acquisitions & Mergers)** - Grey iron, ductile iron, alloy steel, and Simo iron castings (up to 3,000 kg) - Specialized for rail, off-highway, and wind energy applications **Key New Applications**: - **Green Hydrogen Electrolysers** - **Vande Bharat Trains (18+ projects supported)** - **Marine Electric Propulsion & Pumped Hydro Systems** - **Data Center Generators & EV Motors (2W/3W/4W, Buses)** --- ### **Manufacturing Footprint & Capacity** **Six Manufacturing Plants Across Telangana, Maharashtra, and Karnataka**: - **Telangana**: Kothur, Macharam, Nandigaon - **Maharashtra**: Aurangabad (strategic hub), Chhatrapati Sambhajinagar - **Karnataka**: Tumkur (2 units), Hoskote (via acquisition) **Consolidated Annual Capacities (as of FY25)**: - **Sheet Metal / Laminations**: 90,000 MT - **Casting Capacity**: 18,600 MT (after mergers & acquisitions) - **Machining Hours**: 633,600 hours **Recent Expansion**: - Planned **capex of ₹150 crores** to add **8,000–9,000 MT** capacity in FY26, aiming for **80% utilization by FY27**. - **Aurangabad** has become a central, SAP-integrated hub for high-margin machined & assembled components. --- ### **Recent Growth Levers: Mergers, Acquisitions & Integration** 1. **Acquisition of Bagadia Chaitra Industries (May 2024)** - Renamed: **Pitti Industries Private Limited** - Enterprise Value: ₹124.9 crores - Added: Two Tumkur plants (18,000 MT capacity), entry into **pump segment**, strong export potential 2. **Acquisition of Dakshin Foundry (July 2024)** - Equity Value: ₹153.1 crores - Location: Hoskote, Bangalore - Capacity: 4,200 MT of high-quality castings - Strategic: Strengthened backward integration, added **DB (Deutsche Bahn) approval**, expanded in **rail and metro** segments 3. **Merger with Pitti Castings (PCPL) & Pitti Rail and Engineering (PRECL)** - Completed April 1, 2023 - Enhanced **casting integration**, reduced inter-company costs, improved margins - Unified supply chain with **AERB and RDSO-certified foundry operations** These moves have made Pitti Engineering one of **India’s most vertically integrated engineering service providers**, capable of delivering end-to-end solutions with minimal outsourcing. --- ### **Clients & Customer Base** - **Key OEMs**: Siemens Energy, Siemens Mobility, Wabtec, Voith, Alstom, Bombardier, Medha, Cummins, GE, Dana, Varroc, SKS - **Rail & Metro**: Indian Railways (Vande Bharat, freight locomotives), CLW, DMW, ICF - **Renewables & Power**: Siemens Gamesa, Indar, Tata AutoComp - **Automotive & EV**: Expanding relationships in ICE and EV segments; supplying e-bike, two-wheeler, and commercial EV laminations **Customer Concentration & Mitigation**: - ~30–31% exports (diversified across 11 countries) - 75–80% of exports are **sole-source supply**, reducing tariff sensitivity - Active diversification into EVs, data centers, and European foundry demand to mitigate dependency --- ### **Strategic Initiatives & R&D** - **Digital & Smart Manufacturing**: - 4- and 5-axis CNC machines, IoT-enabled production, SAP-integrated shop floors - Automation in punching, laser cutting, robotic welding, and press loading - **R&D Focus**: - Developed laminations using **0.27mm thin electrical steel** and **UL 94 certified 50% glass fiber plastics** for Indian EVs - Innovation in **BLDC motors, EV traction motors, and hydrogen electrolysers** - **Sustainability & Green Energy**: - Active in **wind, solar pumps, green hydrogen, and marine decarbonization** - Aligning with ‘Make in India’, PLI schemes, and net-zero trends --- ### **Financial & Operational Highlights** - **Revenue Growth**: Record sales of **42,305 MT in FY24**, on track to **50,000 MT in FY25** - **Profitability (FY23)**: - Domestic Revenue: ₹747.48 crores - Export Revenue: ₹370.51 crores - EBITDA: ₹18.63 crores (₹63,300/ton) - **Operational Efficiency**: - Castings utilization improved to **77.55%** (from 60.57%) - Lean manufacturing and workflow integration initiatives underway