MUMBAI: Pennar IndustriesBSE -0.46 % has set a target of netting 10 per cent of income from exports over the next five years when it plans to hit the Rs 5,000-crore revenue mark on the back of diversification into hydraulicsand infrastructure sectors.
"Currently, our exports are negligible. But with our strategy to diversify our portfolio by entering sectors like hydraulic and infrastructure, we expect to garner nearly 10 per cent of our revenue from the exports over the next five years. We have also set a target of Rs 5,000 crore revenue by then," its president and CEO Suhas Baxi told PTI.
The engineering steel equipment-manufacturer recently made a foray into the hydraulic equipment market by acquiring the assets of hydraulic cylinder manufacturerWayne-Burt PetroChemicals for Rs 15 crore.
"From being a steel products manufacturer, we now want to upgrade ourselves to become a complete engineering solutions provider. We will continue to focus on new customers and new products to compensate for lower demand from key segments of automobiles and railway," he said.
Currently, the infrastructure business contributes to 40 per cent of its revenues, while railway and automobiles which were the major contributors so far have shown a decline to 13 per cent and 22 per cent, respectively.
Under its infrastructure segment, the Hyderabad-based Pennar manufactures road safety solutions, electrostatic precipitator electrodes, fabricated products and pre-engineered building solutions including modular steel constructions of open-span built-up sections, purlins, girts, roofing and wall panels.