We Are Placing Strong Emphasis on Creating Strong Value Proposition

 - Sakshi Post

Sakshi Post in conversation with Rajiev Luthra, Managing Director at Luthra Pneumsys / Luthra Hydro Pneumatic Industries

Q1. How has PNEUMSYS ADVANCE ENERGY SOLUTIONS (PAES) evolved?

PNEUMSYS is a turnkey project execution company started in 1998 and has grown from a single location in Mumbai to 7 regional offices in India and presence in UAE and Singapore. Pneumsys Advance Piping Solutions is a brand owned by Pneumsys Advance Energy Solutions (PAES) which is working consistently in the pneumatic and industrial automation field for the last 35 years. Owing to our extensive experience in having executed over 2,500 projects in the Indian industry, Middle East & Asian region Pneumsys Advance Energy Solutions (PAES) has gathered extensive experience and expertise in providing the best quality products and services. Our activities encompass installation and commissioning of Air Compressors, Cooling Towers, Chillers and pipelines for all types of utilities for Compressed air, chilled water, oxygen etc, Flow Meters and Pneumatics.

Q2. What is the turnover of the company and what has been the growth of the company year on year?

Our revenue for the FY21 stood at Rs 300 million, representing a 50 per cent growth on a YoY basis. Pneumsys has continually outperformed expectations, and now company's aim for the upcoming fiscal year (FY22-23) is to achieve revenue of more than Rs 500 million. The revenue target for FY23 is attainable on the back of a strong order book.

Q3. Do you have any international projects and do you do projects similar to those you do in India?

Yes, we have a presence in the United Arab Emirates and have worked with number of automotive groups in the Middle-East region. We execute similar projects in the Middle East as we do in India for JCB, Tata Motors, Bentley, and M&M, as well as major paint and steel plant companies such as Nerolac Paints and Tata Steel.

Q4. What are your expansion plans?

Our mission is to provide excellent performance in the design, manufacture, installation, and auditing of high-quality multi-utility equipment and modular pipes across the entire fluid and gas spectrum. Our ambition is to encompass the entire spectrum. With this goal in mind, we have already initiated the process of backward integrating our operations in order to establish independent manufacturing facilities within our company. The facilities are located in Thane, and they will be responsible for the production of numerous kinds of equipment as well as pipelines. We are also looking forward to integrating concurrently by adding additional utilities for green field projects including fire hydrants, cryogenic gases, HVAC, and electrical utilities. This will allow us to integrate more efficiently.

Q5. Are you looking at inorganic growth?

Yes, as we are placing a strong emphasis on creating a strong value proposition in the industry by being self-reliant in terms of manufacturing and the execution of the projects, we intend to accelerate our growth in the industrial sectors in India and in the countries that are neighbouring India. We are always on the hunt for strategic inorganic prospects that will assist us in accelerating our footprint in the market.

Q6. Are you looking for a strategic partner to grow your business?

We are currently not looking at any strategic partners.

Q7. What organic growth can you expect from the company in the next three years?

We are well-positioned to capitalise on strategic inorganic growth prospects, given our in-depth sector expertise and development ambitions. We anticipate good success and improved profitability in the next years. Pneumsys's revenue is projected to surpass Rs 1 billion by FY2025, with a healthy 5-year CAGR of 25%.

Q8. What technologies do you plan to incorporate in the business and why?

We have already integrated Industry 4.0 into our production strategy, and we are also RoHS compliant; as a result, we are now working to optimise our processes in order to reach solutions that are both environmentally friendly and economical.

Q9. How do you plan to make the business a sustainable one?

We will continue to be competitive in the market by investing heavily in research and development as well as advanced manufacturing facilities that will use automatic machines to produce, test, and assemble products. We also intend to maintain and grow our market share through the use of these initiatives for the next fifteen to twenty years.

Q10. Which are some of your biggest customers?

Due to the fact that Pneumsys has finished more than 2,500 projects in the industry, it is difficult to provide specific client references at this time; however, we are engaged in practically all industries, including cement, steel, automotive, packaging, food, and pharmaceutical, to name just a few.

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