Elecon Engineering: Behind the gleaming skyscrapers and the relentless hum of factories lies a network of silent collaborators, crucial for a nation’s industrial might. These are the Industrial gearboxes and Material Handling Equipment (MHE), the unsung heroes that keep the wheels of industry turning. 

Industrial gearboxes are the invisible conductors of power. They efficiently transmit and transform mechanical energy, ensuring smooth operations in countless applications. MHE solutions streamline the movement of materials within factories and warehouses. 

Elecon engineering acts as a bridge between the gearboxes and MHE. They focus on efficiency, innovation and collaboration. By doing these they empower various industries to operate at peak performance, ultimately contributing to a stronger and more prosperous economy.                                                                  

Industrial Overview Of Elecon Engineering

The Indian engineering sector has witnessed positive growth momentum, backed by increased government spending on core infrastructure segments like power, railways, and infrastructure development, as well as private investments in sectors like cement and steel.

Note: If you want to learn Candlesticks and Chart Trading from Scratch, here’s the best book available on Amazon! Get the book now!

telegram channel

However, the industry faced challenges such as higher commodity and fuel costs due to the Russia-Ukraine conflict disrupting supply chains, and Covid-induced lockdowns in China’s manufacturing hubs impacting exports.

Despite these challenges, the engineering sector remained resilient due to supportive government policies like the Production Linked Incentive (PLI) scheme, increased focus on indigenization, corporate tax rate cuts, and increased capital expenditure outlay.

Capacity creation in sectors like infrastructure, oil & gas, power, mining, auto & auto components, steel, refinery, and consumer durables is driving the growth of the engineering industry. India’s engineering sector enjoys competitive advantages in manufacturing costs, technology, and innovation.

There has been a significant shift in the share of industrial exports from developed nations to low-cost base countries like India in recent years, and this trend is expected to continue. Demand in the engineering sector is likely to remain healthy, primarily due to the government’s increased thrust on infrastructure development.

The industry continues to invest in the latest technologies and implement process automation to improve efficiency and overall competitiveness, positioning India as a preferred destination for high-end, complex engineering products. 

Capacity creation in the manufacturing sector, technological improvements in manufacturing processes, diversification by global players away from China, and supportive regulatory policies like PLI bode well for the industry’s growth.

Company Overview Of Elecon Engineering

Elecon Engineering is an Indian Multinational company which manufactures and sells Industrial Gearbox and Material Handling Equipment (MHE). The company was founded in 1951 by Shri Ishwarbhai B. Patel in Goregaon, Mumbai.

The company is one of the largest Asian manufacturers of MHE and Industrial gears which serves major sectors like power, cement, steel, paper, sugar, mining and rubber. Elecon is headquartered in Anand, Gujarat. Elecon Ltd became a public listed company in June 1962 by getting listed in Bombay Stock Exchange and later on National stock exchange in November 2006. 

Electron is one the Asia’s largest industrial gear manufacturing companies  which has a facility spread over 3,35,000 square metres. It is the only company in India which has a capability to manufacture complex gear boxes for the Indian navy. It has its own manufacturing and assembly plants in parts of Sweden, UK, Netherland, USA other than India. 

Currently the stock is trading in the range of 1100 to 1150 and it gave a whopping return of 110% compared to that of the last year. Currently the company has an order book worth 796 crores which include Gear division worth 536 crores and MHE worth 260 crores.  

Also read…

Financials Of Elecon Engineering

FY 2023FY 2022FY 2021FY 2020
Revenue (in crores)1,529.681,211.951,044.441,088.46
Net profit (in crores)237.49140.4957.6389.7

In FY 2023 revenue of the firm increased by 26.21% from 1,211.95 in FY 2022 to 1,529.68 in FY 2023. During FY 2023 the net profit of the firm also increased by 69.04% from 140.49 in FY 2022 to 237.49 in FY 23. 

Analysing a span of three years, encompassing FY 2021 to FY 2023, the company displayed a Compounded annual growth rate (CAGR) of 12.01% in revenue. The increase in revenue and net profit happened due to increased government spending and private investments in core sectors like power, railways, infrastructure, cement, steel, etc. which drove demand for their products.

In FY 23, Elecon maintained favourable financial metrics with a Return on Equity (ROE) of 20.39% and a Return on Capital Employed (ROCE) of 23.99%. 

Future Plans Of Elecon Engineering

Elecon Engineering is aggressively pursuing opportunities to expand its overseas business, particularly through partnerships with Original Equipment Manufacturers (OEMs). 

The company has already secured 11 OEM agreements, with an estimated annual business volume of 6 million euros. It plans to ramp up the commercial production and deliveries to these OEMs starting from the second half of FY25.

While maintaining its leadership position in the domestic market, Elecon Ltd is actively exploring new geographies for exports. The company sees significant potential in markets like Europe, Russia, and other regions where the demand for its gear solutions is on the rise.

Elecon being a company which is committed to continuous innovation and the development of new products, it is venturing into high-speed gears which are used in gas turbines, steam turbines, and compressors, leveraging its expertise and upgrading its technology through consultants.

Elecon has also undertaken a three-year CAPEX plan of Rs. 300 crores to enhance its manufacturing capabilities and cater to the growing demand from both domestic and international markets.

Elecon is also focusing on having sustainable growth, it aims to foster a socially responsible ecosystem by prioritizing sustainable practices, embracing diversity, ensuring safety, and actively uplifting local communities.


Elecon Engineering’s commitment to excellence has positioned them as a leader in India’s Industrial gearboxes and MHE landscape. Their focus on efficiency, innovation and catering to diverse industry needs has demonstrably contributed to the nation’s industrial growth. 

Their recent growth trajectory, coupled with a focus on technological advancements and a skilled workforce, positions them well to capitalize on the nation’s growing industrial ambitions. 

Their vision of becoming a “ Global Leader in the Mechanical Transmission System Business” is a testament to their commitment to continuous improvement and a dedication to propelling India’s industrial sector. What do you think about the future of Elecon engineering will it continue to prosper? Do let me know in the comments below.

Written by Pavunkumar V M 

By utilizing the stock screenerstock heatmapportfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks, also get updated with stock market news, and make well-informed investments.

Start Your Stock Market Journey Today!

Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!