Elecon Engineering Company Limited strengthened its business during the pandemic. The company underwent transformational changes, identified focus areas of improvement, and implemented various steps. During the past two 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.
Elecon’s leadership position in transmission products (industrial gears) in India is bolstered by its significant manufacturing capacities, expansive geographic presence, and formidable position in the sugar, cement, thermal power, steel and material handling equipment segments. Having said Elecon has chartered a reasonably firm entrenchment into the global shores with international sales accounting for 26 percent 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, defense, 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 defense 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 Patel.