Power & Instrumentation (Gujarat) acquires majority stake in Peaton Electricals

Power & Instrumentation (Gujarat) Limited (PIGL) has announced its acquisition of a majority stake in Peaton Electricals Company Limited (PECL), signaling a transformative phase for the Ahmedabad-based electrical contracting giant. With this acquisition, PIGL will expand its shareholding in PECL from 15% to 60%, reinforcing its position as a leader in the electrical equipment manufacturing sector.

This strategic move coincides with PECL’s recent milestone of securing a Siemens license to manufacture, assemble, and sell SIEPAN 8PU low-voltage switchboards. This Siemens certification underscores PECL’s commitment to innovation and quality, and the collaboration is expected to unlock synergies that will benefit both companies and their stakeholders.

Driving Growth Through Strategic Synergies

The acquisition aligns with PIGL’s vision of enhancing its manufacturing capabilities and expanding its product portfolio. By integrating PECL’s expertise and Siemens-certified products, PIGL aims to capitalize on growing market demand for reliable and technologically advanced electrical solutions.

PIGL’s Managing Director, Padmaraj Padmnabhan Pillai, highlighted the acquisition as a significant step forward for the company. He noted that the collaboration would combine PIGL’s extensive market experience with PECL’s manufacturing capabilities, further strengthened by the Siemens certification. This partnership, he stated, is poised to drive innovation and enable resource optimization, which will ultimately enhance value delivery to customers.

The inclusion of Siemens-certified low-voltage switchboards, a globally recognized product line, is set to elevate PIGL’s market reputation and competitiveness. With a broader product range, Power & Instrumentation (Gujarat) is well-positioned to address diverse market needs while driving operational efficiency.

About Power & Instrumentation (Gujarat) Limited

Founded in 1975, Power & Instrumentation (Gujarat) Limited has grown into a prominent player in the electrical contracting and engineering sector. The company offers end-to-end Engineering, Procurement, and Construction (EPC) solutions, specializing in designing, supplying, installing, and maintaining energy-efficient power systems.

PIGL’s portfolio includes projects spanning energy generation, transmission, and distribution. With an impressive track record of over 35 airport projects and the electrification of more than 100,000 households below the poverty line, PIGL’s commitment to quality and innovation is evident.

In May 2023, Power & Instrumentation (Gujarat) achieved another milestone by migrating to the main boards of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), further solidifying its market presence.

Financial Performance and Market Outlook

For the fiscal year 2024, PIGL reported a total income of ₹102.03 crore, with an EBITDA of ₹12.36 crore and a net profit of ₹5.93 crore. These figures reflect the company’s steady growth and operational efficiency. With the integration of Peaton Electricals Company Limited and the Siemens certification, PIGL’s prospects for enhanced revenue and profitability appear strong.

Industry Implications

PIGL’s strategic acquisition is not just a significant development for the company but also a notable event in the broader electrical equipment industry. The partnership emphasizes the importance of technological certifications and collaborative synergies in driving industry growth and innovation.

As PIGL scales its operations with PECL’s support, it is set to become a key contributor to India’s evolving electrical infrastructure, serving a diverse clientele across industrial, commercial, and governmental sectors.