Elecon shifts into high gear

Elecon Engineering Company Limited is a market leader in the industrial gear sector. The company has rightfully earned its place as Asia’s largest manufacturer of industrial transmission gears. It is also one of Asia’s largest manufacturers of material-handling equipment for the power, steel, cement, sugar, paper, mining, rubber, high-speed turbines, marine, windmill and several other sectors. Elecon designs and manufactures a wide range of worm, parallel-shaft, helical and spiral-bevel helical gears with horizontal and vertical output shafts in varied sizes. The company, which has a market capitalisation of approximately $1.20 billion, has been expanding rapidly under its brands – Elecon, Radicon and Benzlers.

The companies it acquired have helped it grow exponentially, as it is constantly looking to enter new markets, potentially through new distribution agreements, with the aim of increasing exports from 22 per cent of the business to over 50 per cent in the next 5 years. It is targeting untapped markets such as South America, where there are strong opportunities for supplying gearboxes to the sugar industry. In addition to manufacturing industrial gearboxes, the company produces gearboxes for the Navy and Coast Guard, which use Elecon technology in their main propulsion drives. One such example was the launch of INS Vikrant, an important milestone for both the company and the country. Elecon gearboxes are also used on other INS vessels, including Nilgiri, Udaygiri, Himgiri and Dunagiri.

Founded in 1951, Elecon has firmly established itself as a global brand, with operations in Sweden, the United Kingdom, the United States, the Middle East and Southeast Asia, as well as service and distribution networks worldwide. With annual domestic revenue of Rs 1,854 crore, the company has benefited from being headquartered in Anand, Gujarat. It also helps that India is predicted to become the world’s third-largest economy by 2030, behind the US and China. Elecon has grown exponentially, broadly matching the country’s economic expansion, as manufacturing and services have expanded rapidly following the lifting of pandemic restrictions. It has been listed since 1962 and has a market capitalisation of $1.20 billion. The current share price is around Rs500-plus, a significant increase from its low of Rs9 over the last 5 years, with respected domestic and foreign institutional investors holding more than 14 per cent of the company.

Business India visited Vidhya Vallabh Nagar (Anand) and met both Chairman and Managing Director Prayasvin Bhanubhai Patel and the next-generation leader, Ayush Shah (his son-in-law), at the company’s headquarters. At 68, Prayasvin embodies the persona of an ambitious individual whose unwavering efforts and high aspirations have propelled Elecon to new heights of achievement. Patel is soft-spoken, down-to-earth and approachable. His extensive knowledge of the gear division and market dynamics underpins his clear vision for the company. The timing could not have been better, as Elecon is celebrating its 75th anniversary.

Ayush Shah, the family’s son-in-law, has been an integral part of Elecon since 2017. Upon joining this illustrious family, his engineering degree from GIT, USA, proved valuable in business unit management, operations management, strategic planning and budgeting, process improvement, human resources, project management and business turnaround. He joined the business with strong operational skills and a keen understanding of multicultural business challenges. His eye for detail, coupled with an analytical mindset, made him a natural advocate of technology, continuous improvement, customer engagement and innovation. Ayush is currently the Chief Executive Officer and Executive Director of Power Build Private Limited. He has steered the company to several milestones during challenging times, and the journey continues with many more achievements ahead.

Getting an overview from Shah was interesting. Rising rapidly through the ranks, he assumed the role of Executive Director at Power Build in 2020. The company manufactures smaller gearboxes for mass production, with its product range complementing Elecon’s, as Elecon’s larger range begins where Power Build’s ends. Power Build had a turnover of Rs 150-200 crore in 2020, which grew to Rs 471 crore last year, with a target of Rs 600 crore this year. It employs 175 staff and approximately 600 factory workers. Having served on the board of Elecon Engineering Company Ltd for the past 2 years, he now appears ready to take the reins at Elecon as the successor.

Patel was also proud to share how he inherited the company from his father, Bhanubhai Patel, who was 50 at the time. He had little choice, being the only son. Today, the company has reported consolidated revenue of Rs 2,366 crore for FY26 and appears poised for a formidable growth trajectory, with its sights firmly set on the future.

The history

The company traces its origins to the Milling Trading Company (MTC), incorporated in the late 1940s on a sprawling site in Goregaon, Mumbai. Elecon itself was established in 1951 as an offshoot of MTC. The business then moved from trading to manufacturing, adopting the name Elecon, derived from ‘elevators’ and ‘conveyors’. Ishwarbhai Patel, the founder, later passed the reins to his two sons, Shahpurbhai and Bhanubhai, following the decision to relocate to Vallabh Vidyanagar in Gujarat, then an emerging industrial hub. Significantly, the move was made at the invitation of Shri HM Patel (former Finance Minister, Government of India) in 1962. Elecon was among the first companies established in the area, contributing significantly to its industrial development and employment generation.

Bhanubhai Patel, with his visionary leadership, transformed the company into a public limited company as early as 1960. His guiding philosophy was to "always be one step ahead" in the engineering industry. Power Build was established in 1972. This was followed by a joint venture with Eimco UK Public Ltd Co. Guided by his farsighted vision, he expanded the company’s global footprint through collaborations with TGW Germany as well. Bhanubhai led the company for four decades, and his initiatives had a profound impact not only on the Indian market but also overseas, as he continually sought innovative ways to upgrade technology and forge international collaborations.

Prayasvin joined the company at the age of 25 after graduating in mechanical engineering and completing a Master’s degree at Loyola University, USA. He says: “I should have started at the very bottom and worked my way up, because all the theoretical knowledge in the world would not have helped if I did not also acquire practical experience.” He took his responsibilities seriously and began his career in 1983 as Joint Managing Director of Elecon Engineering. But his father was not one to wait. Having already made up his mind, he instead made him start at the top. Soon, in 1993, Patel reached another milestone by taking over as Managing Director.

Standing on the sprawling campus, with Elecon’s facilities spread across both sides of the road, one could understand how the business had evolved. As Prayasvin explains: “Initially, although the gear plant was already operational, it was managed remotely by a General Manager and partly from the other side of the road. People looked into the gear business only when they had the time. I found the reporting structure inefficient, and the plant was being sorely neglected.”

Prayasvin approached his father and asked to be given responsibility for the Gear Division, believing it would provide the practical, hands-on experience he lacked while sharpening his understanding of profitability. His father agreed, happy to take the burden off his own shoulders, and Prayasvin soon adopted the once-neglected division as his own.

MM Nanda (now retired), who worked under both Bhanubhai and Prayasvin, recalls that Bhanubhai personally managed all critical areas of the business. He even handled liaison activities at a time when, during the 1970s, government controls over imports, industrial licensing, foreign collaborations and other key areas were extensive. Much of this changed following the liberalisation measures introduced under Dr Manmohan Singh.

Nanda explains the difference between father and son: “The son’s leadership style definitely differs from his father’s. While the father was extremely hands-on, Prayasvin prefers to delegate. He sets challenging goals at the beginning of the year and does not interfere in day-to-day operations. Instead, he reviews performance from a distance, thereby fostering an entrepreneurial spirit among his employees.”

During the Covid period, the company successfully executed a major Indian Navy order worth approximately Rs500 crore for seven frigate shipsets, scheduled for completion between 2017 and 2022. The challenges posed by the pandemic ultimately brought about a positive transformation within the organisation and brought out the best in its workforce. The Gear Division witnessed substantial growth, with turnover increasing from around Rs860 crore in FY20 to approximately Rs1,700 crore last year. Historically, both Bhanubhai Patel and Prayasvin Patel demonstrated remarkable foresight by investing in advanced machinery such as computerised CNC machines long before such technology became commonplace in India. The company's R&D department continues to develop new products while improving existing product lines through new series and product modifications.

Determined to transform the Material Handling Division into a state-of-the-art engineering business, Prayasvin drove the company forward with determination and vision. The origins of the gear business, however, go back much earlier. At a time when the material-handling business was highly profitable, several cash-rich companies sought investment opportunities to reduce their tax liabilities. They approached Elecon, then a major consumer of gears for material-handling equipment, and suggested that it establish its own gear manufacturing plant. This led to the establishment of Elecon’s first full-fledged gear manufacturing facility in 1976. Over the years, the company evolved into a one-stop shop for bulk material-handling equipment and power transmission products.

Known for his strong work ethic, uncompromising principles and simplicity, Bhanubhai proved to be not only an outstanding business leader but also a devoted father, teacher and mentor. Following his father's passing in 2006, Prayasvin assumed complete responsibility for both the Gear Division and the Material Handling business, becoming Chairman and Managing Director of the Elecon Group.

A firm believer in continuous improvement, he transformed the Gear Division into Asia's largest manufacturer of industrial gears. Over time, the division became the principal contributor to the group's profitability. The Material Handling business remained cyclical, experiencing periods of significant downturn, but these were largely offset by the consistent performance of the Gear Division, which effectively supported the business during weaker periods. From revenue of just Rs0.28 crore in 1962, the company has travelled a remarkable distance, recording consolidated revenue of Rs2,366 crore in FY26.

Looking back with a smile, Prayasvin recalls: “What really thrilled me was that it was one of the most modern plants even for those times. CNC technology had only just arrived in India, and all the machines were numerically controlled. Once programmed, the entire process happened automatically.”

The facilities have since been recognised among the most modern in the world. Interestingly, when Prayasvin joined the Gear Division, its turnover stood at just Rs17 crore; today it exceeds Rs1,700 crore. Widely recognised for his passion for state-of-the-art technology, much like his father before him, he has upgraded all the group's companies to similar technological standards.

Nearly 80 per cent of the machinery in the division was computer-controlled, making it one of the most advanced manufacturing plants of its time. German visitors reportedly remarked that "coming here is like visiting a machine-tool exhibition", a tribute to the company's technological excellence.

As a financially strong company with committed investors, Elecon was able to make such investments. For Prayasvin, the Gear Division became his training ground, where he immersed himself in engineering, gear technology, management and operations. Through this experience, he realised that while a hands-on approach was invaluable, sustained growth required effective delegation.

Kamlesh Shah, former Group CFO of the Elecon Group and now Executive Director of Eimco Elecon (India) Ltd, spoke candidly about the company's transformation from a financially stressed organisation into a debt-free, cash-rich enterprise. He joined the group in 2018 when the company was facing market capitalisation challenges, project-related issues and high leverage. Discussing the strategic decisions taken during 2017-18, including the exit from EPC turnkey projects within the Material Handling Equipment Division, Shah explained that the CFO's role extended well beyond finance.

"It included ensuring business sustainability, managing risk and balancing growth with liquidity and profitability. The company has always operated with the objective of earning reasonable and respectable profits while recognising its responsibilities towards five key stakeholders – the government, vendors, employees, customers and investors. I can honestly say that the company maintains exceptionally high ethical standards, including zero cash transactions and compliance with both the letter and the spirit of the law."

Business strategy and growth

The Elecon Group's strategy for its Gear Division, which commands a dominant market share in India, has been to focus increasingly on exports. This not only helps avoid intense domestic price competition but also provides a hedge against any slowdown in the Indian market.

Export intensity varies across the group's companies. Eimco Elecon has relatively limited exports, while both Power Build and the Gear Division enjoy a significant international presence. Automation is also being introduced through robotic welding systems and collaborative robots (dobots) for simpler, repetitive operations that improve efficiency, particularly in gear manufacturing, where products are highly standardised. Power Build is targeting annual growth of 30-40 per cent.

Vijay Mistry Construction (VMC), an acquired company, specialises exclusively in bridge construction, including river bridges and flyovers, and does not undertake building construction, real estate or road projects. It currently records turnover of around Rs300 crore and is targeting Rs500 crore next year. The company has undertaken projects across Gujarat, Mumbai, Rajasthan, Surat and Vadodara.

Another group company, Akaaish Mechatronics, provides maintenance, upgrades and preventive servicing for machinery across the group, enabling Elecon to remain largely self-sufficient in technical support. Other support companies, including Prayas Engineering, Akaaish Printing Press and Woodpack, were also established to strengthen the Elecon Group's integrated operations.

Eimco Elecon: Unearthing the future

Eimco Elecon represents India's expertise in mining and construction equipment manufacturing. Established in 1974 and listed in 1993, it operates from a 15-acre manufacturing facility supported by a DSIR-approved R&D Centre. The company has played a pioneering role in underground mining. As the first company to introduce equipment such as side-load dumpers, load-haul-dumpers and rock-shovel loaders, it has made a significant contribution to metalliferous mining operations. Over the years, it has expanded its product portfolio and, in 2006, entered the construction equipment segment, further extending its engineering capabilities and industrial presence.

In December 2020, the company introduced India's first indigenously manufactured Continuous Miner for blast-free underground mining. Leveraging its expertise in heavy engineering, it continues to explore opportunities in specialised applications requiring customised equipment solutions. In April 2026, it further expanded its technology portfolio by introducing specially designed electric mine cars and multipurpose utility vehicles. Backed by skilled professionals and a commitment to continuous innovation, Eimco Elecon has built a rock-solid reputation for dependable equipment, engineering excellence and responsive customer support. It has consistently remained at the forefront of technological advancement.

Power Build Private Ltd

From modest beginnings in 1972, Power Build has grown into one of India's largest manufacturers of power transmission solutions. Today, with more than 50 years of experience and over 2.5 million installations worldwide, it serves a wide range of industries, including cement, steel, mining, power, sugar, chemicals, food processing, construction and material handling. From a single product line, the company has expanded into a comprehensive portfolio of geared motors, gearboxes, planetary solutions, pumps and drive automation systems. Its journey reflects a steadfast commitment to innovation, engineering excellence and customer value.

International business

The group's international presence includes a manufacturing facility in Thailand under the Radicon brand, which produces components for overseas subsidiaries, as well as a smaller manufacturing facility in Sweden. Assembly centres are located in the UK, the US, South Africa, Australia and Dubai.

In 2012, the company acquired the overseas brands Benzlers and Radicon with the vision of becoming a global player through backward integration, manufacturing in India and assembling and marketing products overseas under these well-established brands. These entities market both Elecon Gear and Power Build products. This strategy was adopted because Indian engineering brands were not widely recognised in Western markets at the time.

Earlier, around 2000, Elecon Singapore and Elecon Middle East had also been incorporated. The company subsequently established its ultra-modern manufacturing facilities – the Bhanubhai Memorial Centre of Excellence (BMCE-1) in 2013 and BMCE-2 in 2025. A landmark year came in 2016, when Elecon secured its largest-ever order from the Indian Navy. In the same year, it also acquired Vijay Mistry Construction Pvt Ltd.

Company and work culture

Prayasvin has always encouraged a healthy work-life balance by promoting structured working hours for employees. As Chairman and Managing Director, he gives his leadership team considerable autonomy, encouraging them to learn from both successes and mistakes.

Asked what gives the company its competitive edge, he explains: “By continuously developing the technology we acquired over the years, we believe technology remains the key differentiator between us, our competitors and the rest of the world.”

The company's state-of-the-art manufacturing facilities are fully automated, exceptionally clean and characterised by their distinctive white buildings, with nearly 60 per cent of the campus dedicated to green areas. The work environment is professional, supported by decentralised decision-making and employee empowerment.

The company has also become debt-free, including its overseas operations. With substantial surplus cash available, it is planning capital expenditure of approximately Rs400 crore over the next 3 years, investing around Rs100 crore annually through internal accruals rather than external borrowings.

CSR

Known for his philanthropic outlook, Prayasvin is actively involved in numerous CSR initiatives, including establishing cardiac, dialysis, trauma and CT scan centres at Shri Krishna Hospital in Karamsad.

A firm believer in education, Elecon provides scholarships to 60 students at BVM Engineering College, supports other meritorious students and contributes to three schools. Reflecting his commitment to community development, he has also donated three public parks to the people of Vallabh Vidyanagar.

Prayasvin's contributions have received widespread recognition. Among several honours, he has been conferred the prestigious Charotar Ratna award by the Rotary Club of Anand.

Reducing carbon footprint

Today, 55 per cent of the company's energy consumption comes from renewable sources, primarily solar and wind. Elecon has achieved another significant milestone with the approval of its near-term emissions reduction targets by the Science Based Targets initiative (SBTi), reaffirming its commitment to global climate goals.

The company has committed to reducing its absolute Scope 1 and Scope 2 greenhouse gas emissions by 54.6 per cent from its FY23 baseline by FY33. It has also extended its sustainability programme throughout its supply chain by committing to ensure that suppliers responsible for 81.4 per cent of its emissions – covering purchased goods and services as well as upstream and downstream transportation and distribution – adopt science-based targets by FY28.

Through accelerated adoption of renewable energy and continuous improvements in operational efficiency, the company aims to reduce its carbon footprint across the entire value chain. These commitments reflect Elecon's strong dedication to sustainability and responsible business practices.

The future

The group has ambitious plans for continued growth across all its businesses, with clearly defined targets for both Power Build and Vijay Mistry Construction. Ongoing efforts are focused on strengthening the company's culture while executing its long-term strategic plans.

The Chairman is expected to retire within the next few years, with Ayush Shah being groomed to assume a broader leadership role across the group. Seventy-five years on, Elecon continues to demonstrate its ability to thrive across multiple business cycles. Its R&D department remains actively engaged in developing new products while continuously improving existing product lines through new series and product enhancements.

Throughout the company's evolution, another noteworthy figure has emerged – Prayasvin's wife, Taruna Patel. More than simply a supportive partner, she has established herself as an accomplished businesswoman, serving as CEO of more than one group company.

Emtici Engineering Ltd diversified into the hospitality sector in 2007, with Madhubhan Resort & Spa – Gujarat's only five-star deluxe resort – commencing operations in 2009.

Prayasvin reflects: “Everyone in the family was given equal opportunities. My daughters, Akankasha and Aishwarya, received excellent education and were offered responsibilities according to their interests.” However, he points out that, as Elecon is a publicly listed company, accommodating family members within the operating business was not always straightforward because of governance requirements. Taruna accepted the opportunity to manage the holding company and gradually assumed responsibility for Madhubhan Resort & Spa. His daughters are now actively involved in the group's human resources and hospitality businesses.

Madhubhan Resort & Spa has performed exceptionally well, at times recording occupancy levels in excess of 100 per cent. The same uncompromising commitment to quality that characterises Elecon's engineering businesses is equally evident in the hospitality venture, where more than Rs100 crore was invested without compromise.