Looking to tap opportunities in defence sector, diversified group Punj Lloyd plans to expand its Gwalior facility and will also explore setting up manufacturing units in various states with an investment kitty of up to Rs 2,000 crore.

“As the whole space opens up... we are expanding our Gwalior facility. We will be adding on new facilities in other States as well. Rajasthan, Karnataka, Andhra Pradesh are the options,” Punj Lloyd Group Chairman Atul Punj told PTI.

The group is willing to make investments in the sector that could be in the range of up to Rs 2,000 crore depending on the opportunity, he added.

“The investment we will see as the opportunities we get. We have made our core investment in Malanpur, around that we will make only specific investments based on our winning some projects. We may invest in the range of Rs 200 to Rs 2,000 crore,” Punj said.

The company has its manufacturing and systems integration facility in Malanpur, near Gwalior, on 65 acres of land which is said to be one of the largest facilities of its kind by a private firm in the Indian defence sector.

The facility is used for machining, welding and fabrication of precision engineered components assembly, integration and testing of weapons and maintenance and repair facility for existing weapons with the Indian army.

“We are focusing on aerodynamics space as the opportunities open up as the tenders come out, based on that we will only take a call,” Punj said.

It has recently been shortlisted by the Defence Ministry for upgrading the Zu 23 air defence gun.

The group has agreements with leading global primes for collaboration in Indian programmes for a wide range of products including artillery systems, air defence gun systems, A—vehicle technology, assault rifles and carbines.

Its current orderbook stands at Rs 20,978 crore.

On widening of its net loss, Punj said, “Net declined essentially because we went through corrective action plan with banks ...that got delayed for various reasons.”

The company has seen widening of its net loss to Rs 597.84 crore during the April—June quarter on sharp decline in income. It had reported a net loss of Rs 363.92 crore for the first quarter of the previous fiscal.

Punj, however, said that based on the corrective measures things would be rectified soon.

Punj Lloyd Group offers EPC services in energy and infrastructure along with engineering and manufacturing capabilities in the defence sector.

The shares of the company today closed at Rs 25.35 a share on BSE, down 1.36 per cent.

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