Date:07/08/2008 URL: http://www.thehindubusinessline.com/2008/08/07/stories/2008080750190200.htm

Back Elecon Engg unit bags orders worth Rs 524 cr

Our Bureau

Ahmedabad, Aug. 6 Elecon Engineering Company Ltdtoday announced that its material handling equipment division has bagged five major orders totalling Rs 524.2 crore.

Of these, two orders worth Rs 400 crore are from Bramhani Industries Ltd, two orders worth Rs 68.69 crore from Bharat Heavy Electricals Ltd (BHEL) and an order worth Rs 31.24 crore from TecproSystems Ltd, Mr Prayasvin Patel, Chairman and Managing Director of the Anand-based company, said at a press conference here.

The company, engaged in the manufacture of MHE, industrial gears and transmission products, also bagged an order worth Rs 21.54 crore from the Egyptian Sponge Iron and Steel Company, Egypt, and another worth Rs 2.73 crore from PT Tecgates Engineering, Indonesia.

Elecon’s unexecuted order value as on July 31, was Rs 1,810.4 crore while its market share in country’s gearbox segment is 26 per cent.

Wind power

With potential for wind power pegged at 45,195 MW, and Gujarat topping the list of States (9,675 MW), Elecon is entering the windmill sector in a big way, targeting a turnover of Rs 300 crore annually in three years’ time from this venture. For this purpose, it has tied up with Turbowind NV Belgium with a licence agreement signed for technology.

Elecon will invest more than Rs 100 crore this year in making windmill gearbox facility for one to two MW gear boxes. The projected investments in the country’s core sector in the material handling equipment segment until 2020 are expected to be Rs 46,500 crore ($10.5 billion).

Elecon is expecting an annual share in it to the tune of Rs 450-670 crore, he added. As against the average growth of 30 per cent in the last three years, the company is expecting this year’s growth at 18-20 per cent due to rising prices and related reasons.

The company’s turnover increased to Rs 826 crore in 2007-08. Its PAT rose by 22.41 per cent from Rs 55 crore in 2006-07 to Rs 67 crore last fiscal. This year, its turnover is expected to be around Rs 1,100 crore. The company is planning to incur a total capital expenditure (capex) of Rs 235 crore in the current and next fiscal years and is exploring the possibilities in SEZ-based engineering facilities in Gujarat and other States, provided its gives logistical advantage.