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Interarch Building Products Ramping Up Capacity To Meet New Orders, Says MD Arvind Nanda

In September, the company had inaugurated the first phase of its PEB manufacturing plant, its fourth fully integrated unit at Athivaram in Andhra Pradesh.

<div class="paragraphs"><p>Interarch Building Products' total order book stood at Rs 1,303 crore as of Oct. 28. (Photo Source: Company website)</p></div>
Interarch Building Products' total order book stood at Rs 1,303 crore as of Oct. 28. (Photo Source: Company website)

Interarch Building Products Ltd. is holding back from taking new orders aggressively as it gears to enhance its existing capacity, according to Managing Director Arvind Nanda.

The total order book of the pre-engineered steel buildings provider stood at Rs 1,303 crore as of Oct. 28. The company won orders worth Rs 250 crore in the second quarter of the current financial year, and added another Rs 214 crore worth of orders till Oct. 28, according to its Q2 earnings declared earlier this week.

Talking to NDTV Profit, Nanda said that the company’s production capacity was a little limited but was on track for rapid expansion. He noted that the engineering solutions provider has been going slow on accepting new orders, as it is still working to complete the existing projects.

“Our order book is at Rs 1,300 crore, a little restricted by us, because in pre-unit buildings, you need to execute your orders within 9–10 months. It's not a very long order book,” he said.

In September, Interarch Building Products had inaugurated the first phase of its fifth state-of-the-art PEB manufacturing plant, its fourth fully integrated unit at Athivaram in Andhra Pradesh.

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“That will add a couple of hundred crores to our capacity in this financial year. That is how we are going to increase our supply and production,” Nanda said.

However, the company cannot take in more orders unless more capacity is built, the top executive acknowledged. 

“The Rs 1,300-crore order book has to be executed in the next nine months. We are trying to execute faster so that we can take more new orders. It doesn't seem to be a problem,” he said.

Phase-II of the company's Andhra Pradesh plant is set to start operations by March or April next year. Nanda said that this will add another 15–20% growth in terms of quantity.

“We are thinking that Phase-II (of the Andhra Pradesh plant) should add about another Rs 500 crores to our revenue. To increase our production capacity for the following year, we are working on both AP Phase-II and increasing the capacity in the north (Kichha),” he said.

“We have to have another Rs 500 crore which will give us a total of about Rs 2,000 crore to Rs 2,100 crore in terms of capacity. We are hoping that this will get substantially used in the coming year,” Nanda added.

Shares of Interarch Building Products Ltd. closed  9.08% higher at Rs 1,752.25 apiece on the NSE on Thursday. On the contrary, the benchmark Nifty 50 closed 0.56% lower at 24,205.35.

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