Punj Lloyd to expand defence facility: Atul Punj

NEW DELHI: Eyeing on defence sector demands, diversified group Punj Lloyd BSE -1.33 % is set to expand its Gwalior facility besides exploring other states like Karnataka and Rajasthan to set up manufacturing units.punj-lloyd-to-expand-defence-facility-atul-punj

“As the whole space opens up… we are expanding our Gwalior facility. We will be adding on new facilities in other states as well. Rajasthan, Karnataka, Andhra Pradesh are the options,” Punj Lloyd Group Chairman Atul Punj said.

“As the whole space opens up… we are expanding our Gwalior facility. We will be adding on new facilities in other states as well. Rajasthan, Karnataka, Andhra Pradesh are the options,” Punj Lloyd Group Chairman Atul Punj said.

The group is willing to make investments in this regard that could be in the range of up to Rs 2,000 crore depending on the opportunity, he said.
“The investment we will see as the opportunities we get. We have made our core investment in Malanpur, around that we will make only specific investments based on our winning some projects. We may invest in the range of Rs 200 to Rs 2,000 crore,” Punj added.

The company has its manufacturing and systems integration facility in Malanpur, near Gwalior, on 65 acres of land which is said to be one of the largest facilities of its kind by private firm in the Indian defence sector.

The facility is used for machining, welding and fabrication of precision engineered components assembly, integration and testing of weapons and maintenance and repair facility for existing weapons with the Indian Army.

“We are focusing on aerodynamics space as the opportunities open up as the tenders come out as we see that there is opportunities, based on that we will only take a call,” Punj said.

It has recently been shortlisted by the Defence Ministry for upgrading the Zu 23 air defence gun.

The group has agreements with leading global primes for collaboration in Indian programmes for a wide range of products including artillery systems, air defence gun systems, A-vehicle technology, assault rifles and carbines.

Its current orderbook stands at Rs 20,978 crore.

On widening of its net loss, Punj said, “Net declined essentially because we went through corrective action plan with banks …that got delayed for various reasons.”

The company has seen widening of its net loss to Rs 597.84 crore during the April-June quarter on sharp decline in income. It had reported a net loss of Rs 363.92 crore for the first quarter of the previous fiscal.
Punj, however, said that based on the corrective measures things would be rectified soon.

Punj Lloyd Group offers EPC services in energy and infrastructure along with engineering and manufacturing capabilities in the defence sector.

The shares of the company today closed at Rs 25.35 a share on BSE, down 1.36 per cent.

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Punj Lloyd eyes Rs 1 lakh cr worth road projects

Confident over turnaround in the infrastructure space, engineering and construction major Punj Lloyd will bid for road projects worth over Rs 1 lakh crore in this fiscal, its top official has said.

raykeshavan-the-brand-union-infrastructure-41-638Right now highways is moving. We are finally seeing a fair amount of movement in that sector… We would be bidding for more than Rs 100,000 crore worth projects in next six to seven months,” Punj Lloyd Group Chairman Atul Punj told PTI.

We are looking at a large number of projects right now … Success rate is typically between 20 per cent and 25 per cent of all the projects we bid,” he added.

His comments came days after government approved easy exit norms from highways projects for developers. The government, last week, permitted 100 per cent equity divestment after two years of completion for all BOT (build, operate and transfer) projects, irrespective of year of award.

The approval would allow developers to use proceeds from the sale of divested equity in incomplete projects of NHAI or any other road project besides any power sector project or to retire their debt to financial institutions in any other infrastructure projects.

Micky Punj said that he was confident over revival of infrastructure space with a slew of steps taken by government in the highways sector to boost investors’ confidence.

We hope the railways will follow and on the back of that other infrastructure projects as well… We are looking at all the opportunities as and when they come,” Punj said.

Punj Lloyd has executed over 16 highway projects of National Highways Authority of India (NHAI) so far. The group’s order backlog stands at about Rs 20,000 crore.

The company has executed portions of the Golden Quadrilateral and North-South and East-West Corridor.