Elecon Engineering Company Ltd, India's largest material handling equipment (MHE), industrial gears and transmission products manufacturer, expects to bag orders worth Rs. 1,100 crore in the next quarter of the current fiscal.
Riding high on the existing as well as future orders, the Vallabh Vidyanagar-based company hopes to achieve a turnover of Rs. 1,100 crore during the fiscal 2008-09.
Presently, the company has outstanding/unexecuted orders to the tune of Rs. 1,800 crore. Apart from this, orders worth Rs. 5, 000 crore related to material handling are likely to be finalised this year.
"We expect to bag new orders to the worth Rs. 1,100 crore within next four months," said Prayasvin B Patel, chairman and managing director, Elecon Engineering.
Material handling equipments (MHE) segment has a huge growth potential. Estimates suggest, power, steel, coal and port sectors are likely to witness investment inflow of nearly Rs 5,69,500 crore by 2020, of which around Rs. 46,500 crore investment would be related to MHE segment with annual average of Rs. 4,300 crore.
"Of the estimated annual investment in MHE category, Elecon hopes to garner a share of Rs. 450 crore to Rs. 670 crore annually," he added.
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Elecon is also eyeing a bigger role in green energy sector. The company plans to pump in around Rs. 100 crore to set up a manufacturing facility for windmill gear boxes.
"The company plans to move from 600KV to 1.5/2MW windmills in a phased manner and we aim to be major player in 1.5 to 2MW windmill segment," he added.
With its plate full, the company expects to achieve a turnover of Rs. 1,100 crore in fiscal 2008-09. The total turnover of the company had increased from Rs. 723 crore in 2006-07 to Rs. 826 crore in 2007-08.
"The turnover of the company is likely to further increase to Rs. 1,400 crore in 2009-10," said H. C. Shah, vice president (commercial) and CFO, Elecon.