Demand for quality CV interiors sees Pinnacle Industries target Rs 1,000 crore revenue in FY2024
Pune-based Tier-1 supplier of automotive seats and interior trims to the commercial vehicle segment is confident about hitting Rs 1,000 crore in revenues in FY24, and also plans to double capacity by FY2026.
Pune-headquartered Tier-1 supplier of automotive seats and interior trims to the commercial vehicle (CV) segment, Pinnacle Industries, is confident about doubling its revenues in the ongoing fiscal. The company aims to register 100% revenue growth and touch the Rs 1,000 crore mark in FY2024. "While we exceeded Rs 500 crore in FY2023, we plan to reach Rs 700-Rs 1,000 crore in revenues in FY2024," Arihant Mehta, President, Pinnacle Industries, told Autocar Professional.
The company, which specialises in commercial vehicle seating systems and interior trims, states that it has developed itself as a strong player over nearly the past three decades. Pinnacle currently has around 15% market share in the CV seating category in India. "We have developed ourselves as a leader in the CV segment over the last 27 years and have a range of solutions such as pushback seats, driver- and co-driver seats. We aim to grow our share to 25-30 percent in the next five years," he added.
Mehta further said that while the company entered the passenger vehicle (PV) segment by supplying seats to the Force Gurkha SUV, it does not intend to foray into the domain completely as it requires a completely different mindset and technology expertise for which most PV OEMs prefer working with their existing global partners.
Aiming to double capacity at Indore plant
"We would like to focus on the CV segment and tap into the tremendous growth opportunities that are coming up with the intensifying infrastructure development in the country," he pointed out.
Pinnacle Industries is a key supplier to the likes of Force Motors, VE Commercial Vehicles, Olectra Greetech, JBM, and Daimler India Commercial Vehicles amongst others from its 25,000-units daily capacity plant in Indore, Madhya Pradesh, and also aims to double capacity to 50,000 components (seats and interior trims like ABS panels) by FY2026, in line with the market growth.
"We are very optimistic about the CV segment over the next three to four years, and we have seen a sudden increase in ordering schedules after Covid," said Mehta.
"Our investments will depend on the OEMs' product roadmap and growth ambitions. While we are coming up with our blow-molded seats, we are not exporting our products at this point in time," he added. However, the company has identified some opportunities in markets like Turkey, where it aims to venture into commercial vehicle seating by striking a joint venture with an existing player. "Europe would be our first target market for exports, which we are hoping to commence by FY2026," revealed Mehta.
"We want to get made-in-India products to global markets, and advanced technologies as well as the lower cost of production is a big advantage for Indian suppliers to supply to OEMs in Europe," he added.
Pinnacle Industries is innovating on its core products and aims to achieve up to 30 percent lightweighting with its blow-moulded seats which are lighter compared to the conventional seat structures. "We are working in line with OEMs to reduce the weight of our products. While material remains largely the same, the blow-moulded seats would weigh around 3kg, compared to 5-6kg weight of a conventional seat," explained Mehta.
Investing into green mobility
Pinnacle Industries, which is also diversifying into the e-mobility segment, had set up a new arm – Eka Mobility – in CY2021, in which it has invested up to Rs 300 crore so far. The company offers its 7-, 9-, and 12-metre electric buses as well as LCVs and plans to invest further into the business as demand for the green transportation fleet from State Transport Undertakings remains on the rise.
In FY2018, Pinnacle Industries had also set up a speciality vehicles division – Pinnacle Speciality Vehicles – wherein it builds specialised vehicles such as tourers, motorhomes, and ambulances, and readies between 2,000-3,000 ambulances every year at its plant. The company installs stretchers, beds, and ABS panels in vehicles like the Tata Winger and Magic, and Force Traveler, and converts them into basic- and advanced-life-support ambulances at its plant. It has a capacity to convert 10,000 ambulances every year.
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