Pitti Engineering bags ₹750 cr order from GE India.
Date: November 13, 2019
Pitti Engineering has bagged ₹750 crore orders from GE India to supply traction motor-related products and other ancillaries to be used in locomotives being made for Indian Railways.
The company has recently set up a manufacturing plant in Aurangabad with an investment of ₹160 crore. It plans to invest another ₹90 crore in the second phase over the next two years. The company has also invested ₹40 crore in modernising its manufacturing facility in Hyderabad.
Pitti expects more orders from GE India and Siemens with Indian Railways focused on achieving 100 per cent indigenisation of manufacturing of about 20-25 per cent of the total fleet of the track machines such as Utility Vehicles, Rail Bound Maintenance Vehicles, Track Laying Equipment, Rail Threader & Rail-cum-Road Vehicles. The global engineering companies GE and Siemens that cater to railway projects are also sourcing more material from India rather than importing from other countries.
Akshay S Pitti, Vice-Chairman and Managing Director, Pitti Engineering told BusinessLine that there are early signs of GE and Siemens moving engineering tools sourcing to India from China and the shift is expected catch pace in next three years.
The Indian Railways is planning to increase the domestic content in machines being supplied by global giants to 50-80 per cent from the current level of 20-50 per cent under Make in India policy.
Orders for domestic high-end engineering manufacturing companies are expected to increase with the Diesel Locomotive Factory, the joint venture between Indian Railways and US-headquartered GE Global Souring India, at Marhowra in Bihar going on stream, he said.
The joint venture company will manufacture 1,000 high-powered freight locomotives over the next ten years.
Pitti said that Indian Railways’ capital expenditure has been growing steadily and touched an all-time high of ₹1.58 lakh crore this fiscal from ₹1.33 lakh crore logged last fiscal.
The company expects ₹500 crore business from Indian Railways, he added.
Pitti’s products find application in almost every equipment that rotates or generates electricity.