FICCI Pioneering Growth - Transforming Kerala: Key Transformers of Kerala featuring Mr. PK Ahammed & Peekay Group

The "Pioneering Growth, Transforming Kerala" conference, organized by the Federation of Indian Chambers of Commerce (FICCI) and the Kerala State Industrial Development Corporation (KSIDC), perfectly encapsulated the urgent call to action: accelerating efforts to build a more resilient, inclusive, innovative, and prosperous Kerala.

In their recently released event souvenir, Mr. PK Ahammed and the Peekay Group have been honored as one of the 'Key Transformers of Kerala'. Here, we proudly republish the incredible growth story, celebrating Peekay's remarkable contributions to the state's transformation.

Excerpt from Souvenir

One of Kerala's most prominent family-owned businesses, Peekay Group was established in 1942 as a trading house by late Haji P.K. Moidu, father of the present Chairman, Mr. P.K. Ahammed. Haji P.K. Moidu had to give up his flourishing business in Burma and return to India empty handed during the Second World War.?His perseverance, commitment and above all strong belief in the Almighty were?his only assets when he started business at Calicut. The strong foundation laid by Haji P.K. Moidu, a legend of his time for his uncommon vision, extraordinary business acumen, and uncompromising integrity, has given the group a strong set of values and fundamentals. Mr. P.K. Ahammed assumed the leadership of the Group following the death of his father in1971. P.K Ahammed & Co - a trading house was the first firm in Kerala to be granted NOC to import rice from Nepal. The Group under his visionary leadership established Ahammed Roller Flour Mills at Calicut in 1982 and later Pondy Roller Mills at Mahe, Union Territory of Puducherry in 1984.??

With a strong belief in the modern concept of "learn, un-learn, and relearn," Mr. Ahammed decided to adapt to the emerging needs of the business and environment by diversifying into various lines of business which included flour mills, steel, real estate, plantations, education, healthcare, charitable institutions, etc. Mr. Ahammed envisioned the value of education and domain expertise to perpetuate the business, and accordingly he ensured his children and grandchildren were sufficiently exposed to world class managerial and technical education, both within the country and abroad to enable them take the business to the international level of competition.?

The diversification activities started with the takeover of Janatha Steel Mills Pvt Ltd., which marked the entry of Peekay into the steel business in 1984. Janatha Steel Mills was engaged in the manufacturing of steel bars and rods. The raw material, steel ingots, was being bought from outside sources. The Group decided to put up a steel ingot manufacturing plant as part of backward integration to Janatha Steel Mills, and accordingly Peekay Steel Castings (P) Ltd was incorporated in 1991.?Foreseeing the unseen business opportunities, Peekay forayed into steel castings, and Mr. K.E. Moidu, the eldest son of Mr. Ahammed, assumed the charge as Managing Director of Peekay Steel Castings Pvt Ltd in 1991. The Group also established Peekay Rolling Mills Pvt. Ltd. in 1994, which is the first rolling mill to produce 8-mm CTD bars in Kerala. The credit for being the first rolling mills to produce TMT rebars using world-renowned Tempcore Technology in Kerala also goes to Peekay Rolling Mills, which is today the most modern steel rolling mill in this part of the country.

Alongside his second son, Faizal K.E., after earning his MS in Industrial Engineering from Bradley University, Chicago decided to explore business opportunities overseas. He is a leading industrialist and a name to reckon with. In 2001, his third son, Mr. K.E. Shanavas, after completing higher education abroad, joined the business as Joint Managing Director of Steel Companies. Making use of his impeccable competence in technical education, Mr. Shanavas introduced a pool of innovative ideas for improvement in production, quality, and cost reduction. Both sons adorned the engineering conglomerate idea of making Peekay Steel into a one stop supplier to all major OEMs globally.?

Peekay Steels have diversified into different industrial segments such as oil and gas, earth moving equipment, mining equipment, hydropower, gas/steam power boilers and turbines, locomotives, and other engineering sectors. The steel company produces industrial components from 1 kg to 15000 kg single piece from its foundries in Calicut (Kerala) and Coimbatore (T.N.). Under its mission to Expand, Modernize and?Diversify, two new plants have been set up; at Hindupur (A.P.) and Bengaluru. The plant at Bengaluru employing the additive Manufacturing Technology from Voxeljet Germany is the largest 3D sand printing facility in the world.??

Today Peekay Steel Castings Pvt. Ltd. is a fast-growing, technologically advanced company that manufactures and supplies steel castings to all major global OEMs in the oil, gas, power, transportation, earth-moving, and engineering sectors. It currently serves many countries, including Germany, France, the United States, the United Kingdom, Austria, Italy, Belgium, the Netherlands, the Czech Republic, Singapore, Japan, South Korea, and Malaysia. Peekay Steel Castings is an approved supplier of castings for nuclear power plants. It has the distinction of being the only foundry in India, holding all major global certifications and accolades under one umbrella. It ranks top 5 and top 2 in Asia Pacific among manufacturers of Steel Castings. It holds the largest number of international quality accreditations in India.?

It is the framework of company policies and value based guidelines that have helped the group grow and diversify. All major business decisions are made in corporate meetings headed by professionals having domain expertise and are based on company vision and values such as honesty, integrity, transparency, hard work, and perseverance. Mr. P.K. Ahammed's grandson, a fourth-generation successor- Mr. Thoufeeq Ahamed, after his higher studies in the UK, joined the Group as Director and is actively espoused in managing the policy making of the company. He being acknowledged as Young Foundryman of the Year in 2019 by his peers is a proof of his commitment and involvement in the business. The Group believes Strongly in second line development as part of succession plan, and the Group is destined to survive for generations.?

In conclusion, Peekay Group's effective Corporate Governance Management has ensured sustainable growth while maintaining transparency and accountability in decision making process, succession planning, risk management and stake holder's confidence. This has helped the group in enhancing productivity benchmarked to the global standards, balancing the interest of the business and the stakeholders, thus fostering trust and confidence in the organization.?

Future Expansion Plan:?

1. Peekay intends expanding the Hindupur plant from Machining and Assembly shop to Full scale foundry, machining and assembly of 800 tons per month capacity.?
2. Also, intends making the Bangalore plant from sand printing to metal and sand printing additive manufacturing center.?
3. Furthermore increase the production at Coimbatore plant from 650 to 750 tons per month.?

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Uniqueness??

1. Besides being one among the best six prime foundries in the world, Peekay steel castings is the one stop solution to all OEMs globally with ready to assemble castings.?
2. Peekay upholds the principle of "Unity in Diversity", valuing the differences in Indian Society and aiming to mitigate inequalities. Through diverse representation in the middle-level leadership positions and the workforce, including individuals from underrepresented backgrounds in remote villages, PEEKAY has successfully fostered harmony among the multitude of cultures, languages, religions and races. The workforce of over 3000 individuals, hailing from nearly all states of the country, is cultivating a strong "sense of belongingness" making Peekay an exemplary business space to work with by any standard.?
3. In founding the Peekay Group, the family wished to create a business enterprise where the community was always centre stage and not just another stakeholder.?

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Awards And Recognitions?

The Peekay Group is a paragon of excellence, having garnered numerous awards and accolades. Here are just a few highlights:

1. IIF Export Excellence Award (Large Scale Category) in 2018, 2021 and 2022.?
2. IIF Lakshman Rao Kirloskar Award - for Foundry of the year in 2022 and 2023.?
3. IIF Green Foundry Award of the Year in 2021.?
4. Export Excellence Award from EEPC for the year in 2021 and 2023.?
5. Safety Awards for the large factories category by the Directorate of Factories & Boilers, Govt. of Kerala in 2016 and 2017.?
6. Award for Best Projects on Environmental Protection and commitment towards GHG Emissions from Emerson in 2022 and 2023.?
7. Best foundry Award from L&T Valves in 2018 and Performance Excellence Award from Baker Hughes in 2018.?
8. Supplier Performance Award from Schlumberger for collaborative performance with Exceptional quality and on-time delivery results in 2022.?
9. Award for Excellence in Productivity Improvement from Wabtec Corporation USA in 2019.?
10. Best Manufacturing Company in Kerala by FICCI in 2023.?

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