Pitti Engineering's (NSE:PITTIENG, BOM:513519) on Thursday approved capital expenditure of around 2.90 billion rupees for setting up a greenfield casting and machined components facility, according to a same-day filing to the Indian bourses.
The company's shares were down nearly 2% in early trade on Friday.
The project is expected to be completed in three years and will be funded through a mix of internal accruals and lease finance.
After the new unit is commissioned, the company's total combined installed casting capacity, including existing facilities and the planned debottlenecking, will increase to 36,000 MT per annum.
On the commissioning of the new facility, the existing Hosakote facility is proposed to be monetized.