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Elecon Engineering Annual Report 2023 Summary

Updated: Oct 1, 2023

  • Elecon Group, founded in 1951 by Late Shri Ishwarbhai B. Patel, began by manufacturing conveyor systems and focusing on Engineering, Procurement, and Construction projects in India.

  • The company expanded into power transmission equipment and established a Gear Division specializing in this area.

  • With over six decades of expertise, Elecon became Asia’s largest gear manufacturing company and gained a global presence.

  • They also provide integrated solutions for Material Handling Systems through their MHE Division. Elecon has been involved in various industries such as cement, sugar, defense, steel, mining, and power sectors.

  • The company has doubled its manufacturing capacity, improved component production, and prioritizes responsive after-sales service.

  • Despite a challenging 2023, They achieved the highest revenue and profit in the past 10 years.

  • The Gear Division maintained its growth momentum by capitalizing on strong demand trends, despite global macroeconomic challenges. The MHE Division experienced a significant turnaround.

  • The company’s decision to shift to a product-based business and exit troubled projects has positively impacted their financials. The government’s focus on infrastructure is expected to lead to increased opportunities in sectors such as steel, cement, sugar, and defense.

  • The company plans to engage with OEMs and strengthen its distributor network in the overseas market. Inflation and supply chain issues in the European market present an advantage for the company to capitalize on.

  • Throughout the year, Elecon capitalized on the growing industry demand for gearboxes & achieved new milestones.

  • Key growth drivers included orders for sugar mill planetary drives, sponge iron drive packages, rolling mill pinion stand gearboxes & marine gears for naval warships.

  • Elecon’s leadership was recognized by renowned companies from the United Kingdom and South America, seeking critical gearbox solutions.

  • Growth drivers in MHE segment: 1 Diversification of the business by venturing in to new areas gave us exposure to new material handling requirements such as FGD packages, Health and life study of equipment / system and providing R&M solution to various customers. 2 Considering that approval for commercial mining and allotment of various mines has been accorded by GOI and that Coal India has plans to execute several new projects, the company is working closely with the industry to upgrade/develop various equipment/systems for them.

  • The Company holds total unexecuted orders about ₹ 713.95 Crores (₹ 568.65 Crores for Gear Division and ₹ 145.30 Crores of MHE Division) as on 31st March, 2023. This will help us to continue to have sustainable growth in coming years.



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