Elecon signs technical pact with German firm

Elecon Engineering Company Ltd, one of the leading material handling equipment, industrial gears and transmission products manufacturer, has signed a technical contract agreement with Renk AG, Germany, for a vertical roller mill (VRM) drive gearboxes.

The German firm will provide technical expertise to design and manufacture two stages bevel planetary type gearboxes for VRMs used in the cement and coal mills. The contract agreement is a full-fledged technical tie-up which includes back-to-back guarantee from Renk AG, Germany.

Prayasvin Patel, chairman and managing director, Elecon, said, "Renk AG, Germany, is a leading firm in the manufacturing of gear units. Using their technical expertise and Elecon's superior technology, we will be the first company in India to manufacture such gearboxes."

Elecon was also the only engineering company to bag a prestigious contract for supplying the main propulsion gearboxes for India's first indigenous aircraft carrier. India is one of the few countries in the world to have developed the capability for building an aircraft carrier and it is equally a proud achievement for Elecon to be part of the landmark project. This is the company's second major endeavour in sophisticated marine gears technology after a successful delivery of gearboxes for Navy's new stealth warships under construction at Mazgaon Docks Ltd, Mumbai.

The gear division of the company is grown by 73 per cent and the material handling equipment (MHE) division has grown 10 per cent. For the period April - July, 2007, Elecon Engineering has bagged orders amounting to a whopping Rs 691 crore for the gear and MHE divisions. Some of the orders include those from Damodar Valley Corporation worth Rs 378.50 crore and NTPC worth Rs 237 crore.

Elecon recently also signed a memorandum of understanding (MoU) with the Gujarat government to invest around Rs 400 crore in projects across the region.

As per the MoU, Elecon would manufacture windmill gearboxes, set up wind farms and fabrication of various kinds of blocks for shipbuilding, thus creating employment for over 1,000 people in the region.

Elecon plans to invest about Rs 80 crore in wind mill gear box facility in the segment of 1 Mw to 2 Mw. Presently, these gearboxes are imported.

The initial turnover for the first full year of operations in 2008-09 is expected to be Rs 110 crore.