FINANCIAL MANAGEMENT – I
Take Home Assignment
Submitted By: Roll No. B11076
Elecon Engineering Company Limited is a power transmission and material handling equipment
manufacturing company based in Gujrat, India. It holds 25% market share in industrial gears and power
transmission equipment segment. It is also the largest manufacturer of material handling equipment
manufacturer in India.
In the year 2010-11, the company registered a consolidated turnover of Rs. 12876
Mn. and a standalone revenue of Rs. 11772 Mn. Elecon earned a standalone profit of Rs. 879 Mn, a 32.77%
increase over previous year. In 2008-09, the company witnessed 14.43% reduction in profit after tax due to
the downturn of global economy and poor domestic scenario. However, the company strongly recovered in
2009-10 registering Rs. 662 Mn profit after tax, an increase of 15.13%.
The company was founded by Shri. Ishwarbhai Patel in the year 1951 in Bombay and started manufacturing
conveying equipments. On 11
January 1960, the company was converted into Private Limited Company. In
May the company shifted its base to Vallabh Vidaynager and became Public Limited Company. In the year
1976, the company set up separate gear manufacturing facility. Today, its product portfolio includes gears
and power transmission, material handling equipments
addressing its customers in steel, fertilizer, cement,
coal, lignite, Mines, power stations, sugar, chemical, plastics and rubber industries.
Product wise the business operations can be segregated in 3 verticals which are gears and power
transmissions, Material Handling Equipments and Alternate Energy products.
The company manufactures Helical & Bevel Helical Gear Boxes, Worm Gear Boxes, Couplings, Wind Mill
Gear Boxes, Elevator Traction Machines, Planetary Gear Boxes, Marine Gear Boxes, High Speed Gear