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Shares of Pavna Industries rise on acquiring land for a new greenfield plant in Uttarakhand

11 June 20243 mins read by Angel One
This strategic move helps the company to strengthen its presence in the domestic automotive sector. Read on to know more.
Shares of Pavna Industries rise on acquiring land for a new greenfield plant in Uttarakhand
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About the acquisition

Pavna Industries Limited, a leading name in India’s automotive parts manufacturing scene, has announced a strategic land acquisition in Pantnagar, Uttarakhand. This move paves the way for a new greenfield plant focused on die-cast component production. The acquisition highlights Pavna’s commitment to growth and its focus on strategically leveraging opportunities within the domestic automotive sector.

The new plant in Pantnagar, encompassing an area of 4335 square meters, is well-positioned to benefit from the region’s logistical and cost advantages. This strategic location will not only streamline operations for serving key clients like Bajaj Auto but will also allow Pavna to tap into a wider OEM (Original Equipment Manufacturer) network within the burgeoning automotive hub of Pantnagar.

The company emphasises its commitment to ongoing and future expansion plans. The new plant is envisioned as a magnet for attracting business from various OEMs in the region, further solidifying Pavna’s market presence. This move holds particular significance considering the automotive sector’s designation as a priority sector in Uttarakhand. The expanded operational capacity will not only enhance service delivery to existing clients but also position Pavna to attract a broader range of OEMs, solidifying its position within the domestic automotive landscape.

Pavna Industries’ recent achievements further underscore its growth trajectory. The company successfully secured an order from Ola Electric earlier this year to supply ignition switches and latches, and it has also recently launched its products in the Bangladeshi market. This land acquisition in Pantnagar signifies yet another step forward in Pavna’s journey toward becoming a dominant player within the Indian automotive parts sector.

Share Price Movement

The shares of Pavna Industries Ltd, a company in the Auto Components & equipment industry, are currently trading at Rs 567.20, which is 2.88% or Rs 15.90 higher than its previous close of Rs 551.30. The stock opened at Rs 573.95, reached a high of Rs 574.65, and a low of Rs 563.75 today. Looking at the broader range, the 52-week high for Pavna Industries is Rs 640.05, while the 52-week low is Rs 265.00. The current price sits above the lower price band of Rs 496.20 but remains below the upper price band of Rs 606.40, both set 10% away from the 52-week high.

About the company

Pavna Industries, along with its subsidiaries, manufactures automotive parts and provides solutions for automobile applications worldwide. The company focuses on quality and customer-oriented components, catering to Original Equipment Manufacturers (OEMs) and providing automotive after-market solutions. With ultra-modern manufacturing plants in India, the company caters to various vehicle segments, including passenger vehicles, two-wheelers, three-wheelers, heavy and light commercial vehicles, and off-road vehicles. Pavna Industries also offers aftermarket sales and services, including filters, clutch plates, bearings, wiper blades, and brake shoes.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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