### **Overview** Pritika Auto Industries Ltd. (PAIL) is a **leading Indian manufacturer of machined castings and critical components for tractors and commercial vehicles**, with over **five decades of experience** in the automotive components sector. Established in **1973 (incorporated in 1974)**, the company has evolved from a small railway forging unit into one of North India’s largest integrated players in the auto-component manufacturing space. It is the flagship entity of the **Pritika Group**, founded by Mr. Raminder S. Nibber and now supported by the next generation, including Gurkaran Singh Nibber, who joined as a Management Trainee in January 2025 to drive digital transformation and business development. --- ### **Core Business and Operations** PAIL specializes in **fully integrated "casting-to-machining" operations**, delivering **ready-to-use components** to OEMs. The company operates across the **full value chain**—design, engineering, casting, machining, and sub-assembly—ensuring high quality, precision, and reliability. #### **Key Segments Served** - **Tractor and Agricultural Equipment** (primary segment) - **Commercial Vehicles (CVs)** – including LCVs and HCVs - **Emerging Sectors:** Railways, Defence, Electric/Hybrid Tractors - **Export Markets:** Material handling applications in the **United States** #### **Key Products** - Axle Housings - Wheel Housings - Hydraulic Lift Housings - Cylinder Blocks - Crank Cases - End Covers - Plate Differential Carriers - Brake Housings - Transmission Cases (via subsidiary) --- ### **Manufacturing Infrastructure and Capacity** The company operates **five modern manufacturing facilities** strategically located in: - Derabassi, Hoshiarpur, Mohali (Punjab) - Tahliwal (Himachal Pradesh) #### **Installed Capacity (as of Nov 2025)** - **Total: 72,000 tons per annum (TPA)** - PAIL: 42,000 MTPA - Pritika Engineering Components Ltd. (PECL): 18,000 MTPA - Meeta Castings (acquired): 12,000 MTPA This capacity includes: - **Expansion of 22,000 TPA** and an additional **3,200 TPA** in recent years - **Acquisition of 12,000 TPA** foundry capacity from **Amrit Duraparts** #### **Future Expansion Plans** - **Target: 100,000 tons per annum by FY27**, supported by: - Organic growth and strategic acquisitions - New facility in Punjab (planned since 2021) - Investment in advanced technologies and lost foam casting --- ### **Customer Base and OEM Relationships** PAIL has built **long-standing, multi-decade relationships** with leading Indian and global OEMs: - **Mahindra & Mahindra / Swaraj** (19+ years) - **TAFE** (27+ years) - **Escorts Kubota** (50+ years) - **Ashok Leyland, SML Isuzu, New Holland Tractors, Brakes India, TMTL** The company is among the **largest suppliers of machined castings in India**, providing critical components for tractors, CVs, and engineering equipment. --- ### **Strategic Initiatives and Growth Catalysts (FY26 Focus)** PAIL is targeting **15–20% revenue growth in FY26**, driven by the following key initiatives: #### 1. **New Sector Diversification** - **Railways:** Dedicated product development underway - **Defence:** Entry into high-growth defense manufacturing - **Electric/Hybrid Tractors:** R&D and product innovation to align with future mobility trends #### 2. **Product and Revenue Diversification** - Launching **high-value, heavier components** (e.g., central housings, differential assemblies, hydraulic blocks) - Shifting product mix to **higher-margin, complex castings** (e.g., crank cases, cylinder blocks) – expected to **boost EBITDA margins by 2% in 2–3 years** - Expanding into **LCV and HCV segments**, currently accounting for ~7% of volumes - Developing **Lost Foam Technology (LFT)** via subsidiary Meeta Castings – enabling precision casting of complex, lightweight parts with superior surface finish #### 3. **Geographic and Export Growth** - Expanding presence in **strategic domestic locations** across India - **Export Focus:** - Won **first export order of $0.5 million** (US-based client) in 2023 - Secured **repeat orders totaling $2 million cumulative value** - Manufacturing facilities compliant with **global standards**, enabling supply to international OEMs - Export revenue to be further supported by **incremental capex and strategic trade participation (e.g., Agritechnica in Germany)** - Goal: Reduce reliance on domestic volatility through **global footprint** #### 4. **Corporate Restructuring & Synergies** - **Demerger (2023–2025):** The automotive/tractor/engineering components business was **demerged from Pritika Industries Ltd. (PIL)** and vested in PAIL - **Benefits:** - Clear focus on core manufacturing - Elimination of intercompany dependency - Improved transparency, operational efficiency, and margin outlook - Forward integration by sourcing raw castings from subsidiary PECL #### 5. **Subsidiary and Capital Raising** - **Pritika Engineering Components Ltd. (PECL):** - Wholly-owned subsidiary with **74.6% stake held by PAIL** - Successfully listed in **December 2022** (IPO oversubscribed ~150x, raised ₹9.42 crore) - Operates as a **captive unit**, supporting PAIL’s casting needs - Installed capacity: ~26,000 tons/year (including Meeta acquisition) - **Fundraising:** Raised ₹30.4 crore via convertible warrants and preferential issues for capacity expansion --- ### **Recent Milestones (2024–2025)** - **Commercial Production Launched** for major multinational tractor OEMs: - Hydraulic Lift Housings, Axle Housings, Differential Assemblies, Front Covers, Link Crank – with **long-term visibility (4–5 years)** - **New Orders Secured:** - Long-term order: **₹51.5 crore/year** from top tractor OEM (Feb 2025) - Axle housing order: **₹10 crore/year** (repeat) - New component order: **₹2.5 crore/year** (Jan 2025) - **Record Performance:** - Highest-ever **monthly dispatch of 3,550 tons** (July 2024) - **Q1 FY26 Revenue: ₹114.61 crore**, with EBITDA up **20.93% YoY** to ₹17.44 crore, PAT up **36.26% YoY** to ₹6.09 crore - **Operational Improvements:** Focus on **working capital management, product mix optimization, and overhead control** --- ### **Competitive Advantages** - **Integrated Manufacturing Model** – casting to machining under one roof - **Superior Project Execution & On-Time Delivery** - **Long-Term OEM Relationships & Loyal Clientele** - **Advanced Technology Adoption** (Lost Foam Casting, automation) - **Strong Order Backlog & Multi-Year Contracts** - **Resilient Business Model** – diversified product mix, customer base, and end markets