Pneumsys Advance Energy Solutions eyes doubling revenue in FY23

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. Pneumsys Advance Energy Solutions is a turnkey project execution company with activities encompassing complete applications from air compressors, piping, flow meters and pneumatics. Owing to its extensive experience in executing over 2,000 projects in the Indian industry, Middle East & Asian region, the company has gathered extensive experience and expertise in providing the best quality products and services. In an exclusive interview with Bizz Buzz Rajiev Luthra, Managing Director at Luthra Pneumsys/ Luthra Hydro Pneumatic Industries gives insights about the company's plans

Tell us more about Pneumsys Advance Energy Solutions (PAES)?

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. Pneumsys Advance Energy Solutions is a turnkey project execution company with activities encompassing complete applications from air compressors, piping, flow meters and pneumatics. Owing to our extensive experience in having executed over 2,000 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 products are extensively used in the pharmaceutical, automotive, plastic, and food industries. The company also pays detailed attention while choosing the vendors by assessing their previous track records, such as ethical standards, industry experience, technology, methodology, timely delivery and cost-effectiveness.

The company is allied with some reputed vendors, who provide finest product quality that helps us in serving our clients in an efficient manner. The vendors utilize advanced machinery and the latest technology during the manufacturing process to ensure high-quality standards. The company focuses hard to meet the requirements of their valued clients by choosing the correct vendors who have the capability to facilitate us with quality products in the desired time frame. Pneumsys Advance Energy Solutions offers complete end to end solutions in the compressed air industry from point of generation to point of application.

We are Present in the following states of India. Maharashtra, Karnataka, Tamil Nadu, Telangana, Gujarat, Delhi NCR and have branches in cities like Mumbai, Pune, Thane, Bengaluru, Chennai, Ahmedabad, Nagpur, Hyderabad, and Delhi.

How has Pneumsys Advance Energy Solutions (PAES) evolved?

Pneumsys is a turnkey project execution company that was founded in 1998. Since its inception, Pneumsys has expanded from a single facility in Mumbai to seven regional offices in India and a presence in the United Arab Emirates and Singapore. Our activities encompass the installation and commissioning of air compressors, cooling towers, chillers, and pipelines for all types of utilities like compressed air, chilled water, oxygen, and so on.

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

When compared to FY20, the revenue for the FY21 stood at Rs 300 million, representing a 50 per cent growth on a YoY basis. Pneumsys has consistently achieved better-than-expected results, and the company's goal for the upcoming fiscal year (FY22-23) is to achieve revenue of more than Rs 500 million. The revenue target for FY23 is achievable on the back of a strong order book.

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 executed similar projects in the Middle East as we did 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.

What are your expansion plans?

Our vision is to provide exceptional excellence in the design, manufacturing, installation, and auditing of high-quality multi-utility equipment and modular pipelines across the entire fluid and gas spectrum. With this vision in mind, we have already begun backward integrating our operations in order to establish independent manufacturing facilities in-house, where we intend to manufacture all types of equipment and pipelines at two Thane locations. We are also forward to integrating simultaneously by adding more utilities for green field projects such as fire hydrants, cryogenic gases, HVAC, and electrical utilities.

Are you looking at inorganic growth?

Yes, as we are stressing on creating a strong value proposition in the industry by being self-reliant in terms of manufacturing and execution of the projects, we intend to accelerate our growth in the industrial sectors in India and neighbouring countries. We are actively on the lookout for strategic inorganic opportunities, which will help us accelerate our presence.

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

We are currently not looking at any strategic partners.

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

We are well-positioned to take advantage of strategic inorganic growth opportunities, given our extensive industry knowledge and considering our expansion plans. In the years to come, we expect to produce strong performance and increased profitability. By FY2025, Pneumsys's revenue is expected to exceed Rs 1,000 million, with a robust 5-year CAGR of 25 per cent.

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

We have already incorporated Industry 4.0 into our manufacturing plan and are also RoHS compliant so we are optimizing our operations to achieve energy-friendly and cost-effective solutions.

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

As we invest heavily in R&D and advanced manufacturing facilities using automatic machines to product, test, and assemble our products, we intend to remain competitive in the market and also sustain our market share with these initiatives for the next 15-20 years.

Which are some of your biggest customers?

It is difficult to offer specific client references at this time due to the fact that Pneumsys has completed more than 2,500 projects in the industry; nonetheless, we are engaged in practically all industries, including cement, steel, automotive, packaging, food, and pharmaceutical, among others.