Elecon Engineering Company Limited (‘Elecon/Company‘), Asia’s largest manufacturer of industrial gear systems and material handling equipment clocked in consolidated revenue for FY22 of INR 12.03 billion (USD 159 million) and is poised at a growth trajectory that is inimitable with an eye to the future. Despite the challenges that the pandemic posed, Elecon took this opportunity to strengthen its business further. The Company underwent transformational changes, identified focus areas of improvement, and implemented various steps. During the past 2 years, Elecon significantly reduced its debts, and is now debt-free in the FY22-23. Working capital improvement in inventory, receivables, etc. pursuing only those businesses that yield profit while closing some legacy EPC projects that could not scale growth have been some key strategic initiatives that the Company adopted in order to consistently perform and give excellent dividends to its happy community of shareholders.
Mr. Prayasvin Patel, CMD, Elecon Engineering
Elecon’s leadership position in transmission products (industrial gears) which enjoys a market share of ~36% in India is bolstered by its significant manufacturing capacities, expansive geographic presence, and formidable position in the Sugar, Cement, Thermal Power, Steel & Material Handling Equipment (MHE) segment. Having said Elecon has chartered a reasonably firm entrenchment into the global shores with international sales accounting for 26% of the consolidated revenues of the year ended FY22. Speaking on this Prayasvin Patel, CMD of Elecon said, “The Company has plans to achieve ~ 25% growth in FY23 and we envisage that the growth of last few years to be sustained which will only improve going forward. We have identified the growth potential across various regions in the Americas, Canada, Africa, Europe, and West Asia and are taking various strategic steps to achieve the same. Our wide range of industrial gear applications caters to various industries across categories, like steel, cement, power, sugar, mining, defence, and similar infrastructure sectors. Notably, only Elecon has a wide range of industrial gear applications in comparison to its peers globally. We have been a well-recognized supplier to the defence industries in the past 40 years and with the increased focus by the government under the “Make in India” initiative, we are well placed to support India’s growth trajectory as a strategic partner and a team that will make our country stronger by the day.”
Established in 1951, Elecon’s stable and strategic outlook over the long term has been commendable. With humble beginnings – a small firm indigenously manufacturing conveying equipment started spreading its wings in sectors, which were then unexplored, resulting in various savings in foreign exchange outflow to today a giant conglomerate having a presence across the globe with a diversified portfolio in core sectors. Elecon has consistently evolved by adopting modern technology and innovation. Their state-of-the-art manufacturing plant has a futuristic outlook and is geared to meet the growing capacity requirements. In its 70th year of inception, Elecon is looking towards a staggering growth to become the Global Leader in the Mechanical Transmission System business with a firm focus on the future. “The Vision 100 is not just a figure but a growth chart for us to strategically plan and execute our vision goals. Over the past several decades, we have grown based on technical collaborations as well as in-house developed technology and have absorbed the learning from collaborations. Going forward, we are open to collaborating if necessary to expand our product basket, strengthen our technological edge and innovate with best practices,” added Prayasvin Patel speaking more on the growth strategy for Elecon.
The Company is looking towards a positive future with a conducive environment for infra growth and growth of core sectors across the globe. It is confident that it will be able to cater to the growing demands of the growth trajectory that the country is stepping on while improving the turnaround and profitability of the Company year on year.
About Elecon Engineering Company Limited
Elecon has two business segments – transmission equipment and material handling equipment. The transmission equipment segment is engaged in manufacturing transmission equipment like gearboxes and couplings while the material handling segment is engaged in manufacturing material handling equipment like raw material handling systems, stackers, reclaimers, bagging and weighing machines, wagon or truck loaders, crushers, wagon tipplers, feeders, and port equipment. It has a business presence across 60+ countries and has plans to expand its geographies into all such countries which use industrial gear systems in moderate or large numbers shortly. Listed with the BSE and NSE, the company has consistently given attractive dividends to its shareholder community.