)
The company is now focusing on infrastructure, manufacturing, automobile, construction, heavy engineering, oil & gas, power, railways, ship building and steel sectors.
In FY14, ElectroMech has registered revenue of Rs 210 crore. At present, it has 25 per cent market share in auto cranes sector. Its Pune plant has a annual capacity of manufacturing 1,500 cranes ranging from 80 kg to 150 tonnes.
“With the change in government at centre, we expect the infrastructure and engineering sector to grow rapidly. Last three years were flat for us. Some of the players have even registered de-growth,” said Tushar Mehendale, managing director ElectroMech.
The industrial cranes market in India is highly fragmented. According to the company, the industrial cranes market in India would be in the region of Rs 2,200 – Rs 2,500 crore per annum. Approximately 30 per cent of the demand comes from the government sector and PSUs while the remaining 70 per cent comes from the private sector. Mehendale further added, “If we divide this sector region-wise in terms of quantities, Western India contributes 50-55 per cent of the total requirement, while Southern India follows with 20-25 per cent, Northern India with 15-20 per cent, and Eastern India with 5-10 per cent. The total volume for industrial cranes is estimated to be approximately 10,000 cranes per year. The private sector is the most vibrant part of the Indian economy and growing at a sustained pace and willing to adopt newer technologies much earlier.”
The company is also planning to set up plant in Chennai. It is working on land acquisition and basic infrastructure facilities and expects an estimated investments for this plant to be around Rs 50 crore. With domestic market slow for the last few years, ElectroMech now is also looking for international markets. The company is expanding in the countries like UAE, Iran and few African counties as well. Currently, it exports 20 per cent of its production to Middle East and Africa.
ElectroMech has recently entered into a joint venture with China-based Zoomlion, the world leader in Tower Cranes, to sell and service their range of Tower Cranes in India. It has collaborated with Germany based crane manufacturer ABUS for HB series cranes to be used extensively in the automobile assembly lines. Along with this, The company also has a tie-up with Stahl Crane Systems, Germany for providing explosion-protected cranes and hoists in India for the oil & gas segment.
The demand for industrial cranes in Japan is 20,000 per annum, in Germany 40,000 and the demand in China stands at 200,000 cranes per year. These large quantities give global manufacturers the advantage of economies of scale; allowing them to consolidate their global quantities and manufacture in bulk, thus reducing costs and making their products very competitive. Moreover, most developed countries have very stringent regulations that govern industrial crane manufacturers.
