Pennar to scale up 'Build360' retail outlets
Total store count to increase from current 11 to 42 by FY20
Hyderabad: Pennar Industries Limited (PIL), a leading value-added engineering products and solutions company, on Tuesday announced its plans to scale up the number of retail outlets for its branded building products.
The retail stores for building products are branded as 'Build 360'. The company opened its first outlet in 2017 in Vijayawada and currently operates 11 stores in Vizag, Nellore, Tirupati, Anantapuram, Khammam, Rajahmundry, Hyderabad and Tadepalligudem; besides 2 stores in Vijayawada.
The company is planning to gradually ramp up the business by opening more stores. By the end of FY19, the company will have 6 more stores, taking the total store count to 17.
These stores are in Vanasthalipuram, Kurnool, Kakinada, Guntur, Warangal, Karimnagar. In fiscal 2020, PIL has plans to set up 25 additional stores across Karnataka, Tamil Nadu and Telangana.
PIL is working on a five-year business plan of setting up 100 'Build360' stores by FY23 and expect to report significant revenue growth in this segment.
K M Sunil, VP (Corporate Strategy), Pennar Industries, said, "Organised retailing of ready-to-use steel building products is on the rise. Pennar is known for its innovative and customised value-added engineered products and building products retailing is an extension of our capabilities.
Our brand 'Build360' has been well accepted by the trade intermediaries as well as end-users for the quality and the product variety. We will expand our retail network in a very cost-efficient manner and ensure that the business generates high Return on Capital".
Currently, 'Build360' outlets sell in-house product range such as round and section pipes, sheets and plates special sections, structural steels, and accessories such as roofing screws, drilling and self-tapping screws, UPVC hardware, turbo ventilators and roofing material.
Going forward, the stores will house third-party products such as TMT steel, paint, cement, wall putty, drill machines, agricultural tools, etc.