Phenix Varco to set up 2 greenfield projects

Mumbai/Ahmedabad: Phenix Varco Pruden (PVP), a joint venture between Ahmedabad-based Manibhai and Brothers Group of Companies (MB Group) and US-based Varco Pruden Buildings, plans to invest Rs 200 crore over the next one year for setting up two greenfield projects to produce complete pre-engineered buildings (PEB).

The company also plans to expand its existing unit in Sanand near Ahmedabad that was commissioned in January this year. It had invested about Rs 80 crore in the Sanand unit, which has an an installed capacity of 60,000 tpa (tonnes per annum).

“Our goal is to touch a Rs 1,000-crore turnover in a year or two having an overall capacity of 125,000 tpa. We aim to reach out to the south and north Indian consumers and for this we will be setting up one plant each in the two regions,” said Malav Patel, managing director of PVP.

To fund the expansion plans, the company is exploring various options including an IPO next year. Though the partnership with Varco Pruden is for exclusive technology tie-up, the US-based firm is also looking for an equity tie-up.

During the Vibrant Gujarat 2007, the MB Group had signed an MoU with the Gujarat government worth Rs 80 crore for setting up the Sanand facility. In its first year of production, the company has targeted 25,000 tonnes in the year 2008-09.

PEB is a growing concept in India. Its share in the country is about Rs 4,000 crore, said VR Rajan, joint managing director and chief executing officer, PVP.

The buildings are suited for applications such as factories, warehouses, malls, airport hangers and many other infrastructure projects and commercial uses. The company’s clientele includes Maytas Infra, Asia Motor Works, Vag Valves and SJ Constructions (L&T).

Currently, the Sanand plant can produce pre-engineered buildings to a height of about three to four storeys but plans are afoot to introduce high-rise pre-engineered buildings.

“India is one of our key strategic countries, and this new production facility is an integral part of our planned approach for success in the dynamic and growing Indian market,” said Skip Hannah, director, International Business, Varco Pruden.

With five manufacturing facilities, VP produces close to 250,000 tonnes of pre-engineered buildings per annum making it one of the largest in the US and a leader in the PEB industry across the globe with a turnover of close to $350 million.