Elecon Engineering Company Ltd, one of the leading players in material handling equipments space, seem to be constantly scouting for new areas of growth. After having entered into windmill and hospitality sector, the company is now exploring the possibility of venturing into mineral beneficiation segment.
"We are weighing various options to foray into mineral processing or mineral beneficiation business,” said Prayasvin Patel, chairman and managing director, Elecon. The Vallabh Vidhyanagar-based engineering company estimates that it would require nearly Rs. 100 crore for getting into mineral processing buisness.
"We require modern technology to convert minerals into metals and the company is in talks with few overseas players for the technology,"he added. Elecon may either acquire technology or form a joint venture with some player already operating in this sector. "If Elecon goes for a joint venture, it could float a new company for the project," Patel said.
"The company is a leader in material handling equipments business and these equipments find large applications in mineral beneficiation business too. We will also be able to use our material handling equipments for mineral processing," he explained.
Apart from this, high speed gears, defense (Nevy) and gears for plastic industry are some of the other categories that the company is looking to enter into. Recently, the company has made inroads into hospitality sector. Elecon's five star resort is all set to open soon. Elecon plans to set up a golf course project in central Gujarat with an investment of Rs. 400 crore.
"At present, land acquisition is going on. The company is also in talks with domestic golf course developers and planners for implementing the project," he stated.
The company aims to grow by 20 per cent in 2009-10 to achieve a sales turnover of Rs. 1,150 crore. Elecon has unexecuted orders to the tune of Rs. 1,552 crore and it received order booking worth Rs. 1,334 crore in 2008-09.
