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Material handling equipment manufacturing is a big market on the 21st century. It

is a big market with lots of collateral problems, which all have their own

importance. Managers of handling equipment are asked to improve automate

processes, inventory control efficiencies optimize storage and upgrade systems

while concurrently being obligated to manage environmentally responsible

warehouse...

Most of the largest and most advanced materials handling industries are located

in advanced nations, particularly those that have large, well-developed home

markets, Technical expertise in manufacturing higher-value products and access

to factors of production such as capital and labor supplies.

India today has the capacity to manufacture most of the products that are

classified under the material handling equipment segment, the difference is one

in the level of sophistication. India tends to be lacking in infrastructure, a fact that

makes its logistics costs very high by international standards. Indian companies

are outsourcing their logistics functions to external providers who provide

transport plus a range of services, such as packaging, labeling, billing and

tracking.

The consumption of material handling and logistics equipment and systems in

the USA exceeds US$ 156 billion per year, and the manufacturers of equipment

alone employ in excess of 700,000 workers. But things are now changing in

India. Demand for industrial trucks, forklifts, hoisting gear, cranes, software and

materials handling and warehousing systems is especially strong on the Indian

logistics market. The market is enjoying annual growth rates of 20 to 30 per cent.

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HISTORY

ELECON ENGINEERING COMPANY LIMITED.

Shri Ishwarbhai Patel has established a Milling trading company pvt ltd atMumbai which is said to be root cause for stemming a big and world famous

Elecon eng. Co. ltd. It must be noted, in the year 1951, Milling Trading Co. was

incorporated on idea of establishing an indigenous organization to manufacture

Material Handling Equipments in country and thus Elecon came into existence.

It pioneered the manufacture of material handling equipment. In more than 5

decades, Elecon has designed and implemented several landmark projects in

India as well as abroad. On 11th January 1960, Elecon eng. Co .ltd. was

incorporated as a Pvt. Ltd company under the act to take over the business

carried on by Sole Proprietor concern. And after the formation of Gujarat State in

May 1960, Elecon shifted its base to Vallabh Vidhyanagar, Gujarat, in order to

contribute towards the development of home-land. And then later it was

converted into Public ltd. Company.

Elecon set out its journey to sale new light of Technical excellence creating

landmarks from Elevators & Conveyors to high quality Material Handling

Equipments and Gears.

Elecon started manufacture of Gear units in 1962 and started separate Gear

division in the year 1976. Gear division manufactures different types of Gears viz.

Spiral gears, Reduction gears etc. Elecon has expertise in providing the

customized Gear boxes for Steel mills, Sugar mills, High speed turbines, and

also for the satellite in the Indian Space Programme

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It is very interesting to note that the name of the company is derived from its two

main products named Elevator &Conveyor, and the company derives its

corporate identity viz, ELECON. It has been symbolizing the concept of Bulk

Material Handling Technology. Elecon has made its presence felt through

consistent and satisfactory performance of its equipment in such core sectors as

fertilizer, Cement, Coal /Power generation, Chemical, Steel Plant etc. across the

country.

Elecon has played a pioneering role by way being first in design, Manufacturing

and supplying the above products in India, and thereby adhering the motto of

ALWAYS A STEP AHEAD IN TECHNOLOGY

Elecon set up its Alternate Energy Division in the year 1995 for manufacturing

and supply of Wind Turbine Generators- a non conventional source of producing

energy.

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PROFILE

1. Divisions:

Material Handling Equipment Division

Gear Division

Alternate energy Division

2. Group Companies:

Eimco Elecon

Power Build Ltd.

EMTICI Eng. Ltd.

Ringspann Elecon (India) Ltd.

Prayas Eng. Ltd.

Elecon Information Technology Ltd.

3. Board of Directors:

Shri Prayasvin B. Patel

Shri Hasmukhlal S. Parikh

Dr. Amritlal C. Shah

Shri Pradip M. Patel

Shri Chirayu R. Amin

Shri Prashant Amin

4. Chairman & M.D.:

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Shri Prayasvin B. Patel

5. Chief Financial Officer:

Shri Hemendra C Shah

6. Company Secretary:

Shri Paresh M. Shukla

7. Auditors:

Thacker Butala Desai

Chartered Accountants

Navsari

8. Bankers:

State Bank of India

Bank of Baroda

EXIM Bank of india

Axis Bank limited

Standard Chartered bank

HDFC Bank Limited

IDBI BanK Ltd.

9. Registered Office:

Anand Sojitra Road

Vallabh Vidhyanagar 388120

Gujarat, India

10. Branch Offices:

Mumbai, Delhi, Kolkata, Chennai

Bangalore, Ahmedabad, Pune,

Nagpur, Jamshedpur, Bilaspur, Dhanbad.

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11. International Branch Offices:

Dubai, South Africa, China,

Singapore, Australia.

12. Website:

www.elecon.com

GROUP COMPANIES

Eimco Elecon (I) Ltd.

It was incorporated in the year 1974 and was promoted by Environtech

Corporation, USA, Elecon Engineering Co. Ltd. Vallabh Vidyanagar and its

Chairman& Managing Director Shri B.I. Patel

Eimco Group of Companies Subsidiaries of Environtech USA are the world

leader in production of underground mining machinery having plants in U.K.,

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CHART 1

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USA, Canada, France and Australia. EEIL and Eimco Group of Companies

entered into collaboration under which EEIL received necessary technical know-

how from Eimco Group of Companies for production of underground mining

machineries.

In 1989, Eimco Group of companies were acquired by Tamrock OY., a world

leader in technology and manufacturing of rock excavation and breaking

equipments for surface and underground mines and civil engineering

construction with production and assembly facilities in various parts of the world

backed by worldwide sales and distribution net work.

Internationally, Tamrock holds close to 40% market share in the mining

machinery business. It is a leading supplier of drilling and loading equipments for

hard rock applications.

The products:

Air Powered Rocker Shovels,

Electro hydraulic Side Dump

Underground Coal mines and Metalliferous mines.

Hydraulic Drilling and Roof bolting Hoists. Side Dump Loaders,

Mechanization system of underground coal mines.

The customers:

Eimco Elecon's major clients are,

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Bharat Cooking Coal Limited.

Eastern Coalfield Limited

Singanery Collieries Co. Ltd.,

Uranium Corporation of India.

Bharat Gold Mines

Hindustan Copper Limited

Hindustan Zinc Limited

Larsen & Toubro Ltd.

Ferro Alloys Corporation Limited etc.

Power build ltd.

Photo With a humble beginning in 1972 as one of the group Companies of

Elecon group, Power Build Limited, ventured into production of Geared Motors

and gear boxes in technical collaboration with M/s. Roudolf Muchna KG of West

Germany. Since then the company never looked back and forged ahead by

addition of sophisticated and state of the art products as enumerated here under:

Automatic weighing and Bag Filling Machines.

Electronic Belt weathers and weigh feeders

Metal Detectors

Inline Magnetic separators and suspension magnets with latest

technology.

Electric Hoist using the latest techniques of conical rotor design motors

Automatic Wagon & Truck loaders

Beltway switches and pulls cord switches used for conveyors.

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Unsurpassed quality of the product is the company's prime motto and the factory

is equipped with the latest and the most modern machineries including (CNC)

machines ensuring highest quality of product and interchangeability. PBL has

executed a large number of orders in the core sector industries like Fertilizers,

Cement, Coal, Power Generation, Chemicals, Steel Plants, etc. Equipments

supplied by PBL are rendering trouble free service for years at length.

EMTICI engineering ltd.

EMTIC Engineering Limited is a Sole Selling Agent of Elecon Engineering Co.

Ltd., Eimco Elecon (India) Ltd., Power Build Ltd., Vallabh Vidyanagar., and

Gujarat.

Also carrying out fabrication & erection activity for Coal Handling Plants & other

Material Handling Equipment and providing post sale as well as during warranty

services and post warranty services for supplies of principals.

Company is having branch offices at Mumbai, Delhi, Chennai, Kolkata,

Ahmadabad, Dhanbad, Asansol, Jamshedpur, Secundarabad, Nagpur, Pune,

Bilaspur, Indore, Bangalore, Baroda and overseas in Singapore, China, Dubai,

Australia and South Africa.

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Madhubhan Resort & Spa

A magnificent resort and spa covering 6,50.000 sq.ft. has been built in the

picturesque green belt of Charotar in Gujarat and promises its guests gifts of

relaxation, family bonding and rejuvenation. Located just 45 minutes from

Vadodara which is a short flight from Mumbai or New Delhi, the resort is amidst

natural settings accented by meticulously landscaped open spaces.

ELECON information technology ltd.

Elecon Information Technology Ltd (EITL) draws on the companys vast and

varied experience of more than 13 years in the field of hardware, software and

networking solutions. The companys mission is to provide comprehensive

software and hardware solutions and satisfy customers business and

management needs.

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VISION

For close to half century, Elecon has contributed to nation building activitiesthrough infrastructure development and Bulk Material Handling Solutions,

thereby positively impacting the livelihood of millions. Elecon promises to do so in

future while keeping the interest of our customer foremost in our minds.

Courageously they shall continue to improve and adapt to changes and be a

market leader by always remaining a step ahead in technology and quality whilestriving to widen their horizons through globalization.

They shall meet the aspirations of our stakeholders and enhance their wealth &

shall continue to be a joyful and happy Elecon family of smiling faces through

love, honesty and respect for each other.

They shall also, always remain conscious of their social obligations and adopt

environment friendly practices.

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ORGANIZATION STRUCTURE

The Organizational structure is there for every unit. This structure is one kind of

Road map, Pathway, for knowing easily the different designations and positions.

It can be easily known who is accountable to whom, whose has more authority.

Following is the Organization Chart forELECON:

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The above shown is the organization chart, but only the main designations of

Elecon are shown here. Because full chart is not possible to show. Above

designations are of those people who has the Management in hand.

On the Top is C.M &M.D, Shri Prayasvin Patel who has the prime authority. Shri

Prashant Amin is the Group Director who is accountable to him. Below Group

Director there are three people namely Shri U.V,Phanikumar, Shri Hemendra

Shah, & Shri Vilas Kalyankar, with the post of CEO (MHE), V.P. (commercial)

&CFO, CEO (Gear) respectively. These three are also accountable to Group

Director and also inter-related to each other.

DIVISIONS

M.H.E. DIVISION

14

CEO

(M.H.E. Division)

Vice- President

(Commercial) &

CFO

CEO

(Gear Division)

Group

Director

Chairman &

Managing Director

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Elecon has modern, well equipped Material Handling Equipment manufacturing

plant at Vallabh Vidhyanagar. Material handling equipment is manufactured with

sophisticated NC and CNC machines tools, modern quality control and testing

equipments.

Elecon has grown to become the single largest company having a composite

range of almost all types of Bulk Material Handling Equipment. It has supplied Hi-

Tech Material handling equipment to various Industrial Sectors such as Steel,

Fertilizer, and Cement etc.

(Rs in Mn)

Year Net sale of MHE % increase in sale

2005-06 2,106 -----

2006-07 4,096 94.49 %

2007-08 4,373 6.67 %

2008-09 5,607 28.22 %

2009-10 6,205 10.67 %

TABLE 1

CHART 3

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GEAR DIVISION

Elecon also has its own separate Gear division which stated manufacturing High

quality Gears. It must be noted that, Elecons Gear division is acknowledged in

the industry as the most modern in the country. More than 85% of machinery and

testing equipment is computer controlled, ensuring a high degree of precision in

the manufacture and testing of Gear components.

Apart from a large concentration of Computerized Numerically Controlled (CNC)

Machines, Elecon also has sophisticated gear profile testing machines.

(Rs in Mn)

Year Net sale of gear

division

% increase in sale

2005-06 2,318 -----

2006-07 3,110 37.17 %

2007-08 3,891 25.11 %

2008-09 3,944 1.36 %

2009-10 4,259 7.00 %

TABLE 2

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CHART 4

ALTERNATE ENERGY DIVISION

Elecon take the opportunity to help the world in reducing the Global Warming by

providing the solution to generate the GREEN POWER by harnessing energy

through renewable source, mainly Wind.

Elecon has prior experience in the field of Wind Power, installed around 50 Nos.,

Wind Turbines of 300 KW rating 1995 to 1998.After 2001, Elecon is planning to

expand its Wind Turbine business all over the world with its expertise in the field

of manufacturing and strong infrastructure available at their plants at Vallabh

Vidhyanagar, in Anand, Gujarat.

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CORPORATE SOCIAL RENSPONSIBILITY

ELECON believe that its one of them core responsibility as a Corporate to give

back to the society in which we operate. Year on year we have been actively

involved in upliftment activities focusing majorly in the areas nearby apart from

employees development activities.

ELECONs yearly commitments include developmental activities in Indiranagar

(the village that we have adopted) near Napad, maintenance of the Bhanubhai

and Madhuben Patel cardiac centre that was built by us at Shri Krishna Hospital

along with other medical facilities, we contribute in a positive way to 3 schools

and 3 parks that we have built in and around Vallabh Vidyanagar, Gujarat.

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Through our social service wing ELCARE and ELF we try to reach out and offer

help wherever possible. Some of our community involvements this year were:

Mega Blood Donation camp:

India needs around 400 million units of blood each year out of which it is only

able to collect around 5 million units. This leads to a severe shortage of blood

and in many cases deprives people in acute need of it, causing fatalities. Eleconhas organize blood donation camps with the IRS (Indian Red Cross Society) on a

regular basis for our employees and organized a Super Mega Blood Donation

Camp for everyone to come and donate for this cause. Elecon is able to

successfully collect 1067 Units of blood in a single day which is a record number

for collection in Anand and Kheda District.

Scholarship to Students:

Elecon believe that right education is the foundation that the India of tomorrow

will be built upon. So, not letting money be a constraint for the deserving students

to pursue higher education, Elecon give scholarships to meritious students that

cover their food, hostel and tuition fees. The selection is made by considering the

financial situation of the applicant amongst other things. Last year we offered 45

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scholarships with the number set to increase to 60 students this year.

Apart from these, Elecon have also actively participated in various other small

activities like donation of computers to a school in a nearby village, organizing

various sports events, organizing various cultural events and creative activities,

helping a school for the differently able (visually impaired) children, providing

training to students to help them develop a good and thorough understanding of

their fields of education and reaching out to other societal causes through our

social service wings EL CARE and ELF.

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PRODUCTION DEPARTMENT

As we know the Industry embraces all types of Human efforts leading to the

generation of human wants. Product gets generated through process of

production. So first of all Raw materials is achieved and their conversion process

takes place. So clear meaning which we get is, Production is concerned with the

conversion of raw material and other inputs into certain output required by

consumers. This certain output is finished products.

Production Department handles the function of conversion of Raw material in tofinished products. It consists of application of planning, organizing, staffing,

directing and controlling functions in the process of converting the inputs to the

desired outputs, efficiently and effectively.

In ELECON, the MHE division manufacture the Material Handling Equipments,

Gear Division manufactures high quality Gears, and Alternate Energy Divisionmanufactures Wind Turbine Generators, used to produce electricity.

TYPES OF PRODUCTS

MHE Division has the wide product range. There are about 30 products being

produced like Idler, Pulley, Side Arm Changer, Mobile Wagon etc.

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Gear Division also has the wide product range. Products include N.V. warn

Gears, Helical Gears, Fluid Coupling, General Coupling, Flexible Coupling,

Planetary Gear boxes, Bucket Gear boxes, Wheel Gear boxes etc.

MAIN RAW MATERIALS USED

Steel Plates, Round Bars, Iron & Steel, Seamless Pipes & Tubes etc.

MANUFACUTURING PROCESS

Elecon Eng. Co. Ltd. is engaged in manufacturing of more than 31 products, so it

is very difficult to mention the Manufacturing Process.

Following is General Manufacturing Process:

1. Raw Material:

Basic Raw Material is Iron & Steel. Therefore first of all purchase of Iron & steel

is done from TISCO and from Open market like Gujarat Steel Tubes Ltd.,

Ahmadabad Steel.

2. Steel Cutting:

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In this Workshop the Raw materials is brought and are cut accordingly as per

requirement. This Department is provided with Machines like Band, Saw bending

Machines. In which different types of Material is cut.

3. Machine Shop:

In this workshop the drawing is necessary because all mechanical components

are manufactured here. All machines are CNC controlled. Such as Vertical and

Horizontal Gear tool cutting machine.

4. Fabrication:

Components manufactured in Steel cutting and Machine shop are fabricated and

assembled by welding, drilling and Grinding Machine.

QUALITY ASSURANCE MEASURES

QUALITY POLICY

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It is the policy of ELECON to attain standard of quality and Reliability in system

performance, which are the benchmarks in equipments and turnkey Bulk Material

Handling Systems which includes price, delivery & all interfaces between their

customers and Elecon.

All Employees are committed to the Goals of this quality policy under the overall

leadership of Managing Director [M.D.].

QUALITY CERTIFICATIONS

The International organization for Standard was founded in 1949 Geneva,

Switzerland where it is still headquarters. Recognizing the importance of Quality

Standards the ISO has developed the series of standards in Quality Management

System, which is adopted by all types of Organization belong to Government,

Public, Private & Joint Sectors. These standards are generic and not specify toany particular product. The implementation of ISO 9000 is done in building

quality into products or services, by preventing deficiencies during the design,

production, installation and in service, instead of making expensive Cost of

production, Inspection, Warranty Claims and Reworking.

In November 1994, Elecons Gear Quality Management System achievedinternational recognition when it was conferred the ISO 9001. It was certified that

Elecons Gear Division Quality Management System confirms to the

internationally accepted ISO- 9001 standards.

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In November 1999, Elecons MHE Division achieved International recognition

by receiving ISO 9001 Certificate for design, Manufacturing, Supply, Erection,

Commissioning, & servicing of Turnkey Material Handling system.

As per Elecon, the ISO-9001 Certification gives six distinct advantages:

1. It increases access to the international market.

2. Enhances competitive edge.

3. It sharpens the clarity of role and responsibility.

4. Brings to them more customers confidence.

5. The documentation guarantees output is right first time and every time.

6. The fire fighting is not required.

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HUMAN RESOURCE DEPARTMENT

Human resource is of paramount importance in the success of any organization

because most of the problems in the organization setting are human, & socialrather than Physical or Economical. Men are the most crucial out of the other Ms

viz Material, Machine, Money, and Method.

Human resource Department has the task of handling the human problems of an

organization and it is devoted to acquiring, developing, utilizing and maintaining

efficient workforce. The Department undertakes the functions of Recruitment,Selection etc. H.R. manager discuss the problems of employees, he is the

advisor to the Top management and a counselor of employees. He undertakes

the functions which are related to Human Relations.

Following is the list of some activities of H.R. Department in ELECON:

1. To formulate the Human Resource Policy.

2. To Recruit and Select Healthy and Wide spectrum of people.

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3. To give the transfer to the employee if required.

4. Provide Welfare facilities to enhance occupational skills of employee.

5. To give training and Promotion opportunities to employee.

6. To maintain good relationship with the personnel for the smooth running of

functions in organization.

ORAGNIZATION CHART

Following is the Organization Chart ofH.R. Department in ELECON:

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The above Chart reveals that the General Manager (H. R) is accountable to

Chairman & Managing Director, Shri Prayasvin Patel. And under the G.M. (H.R.)

there are five people having the designation of Manager (salary & wages),

Manager (H.R.), Dy. Manager (payroll), Ass. Manager (safety & training) and

Ass. Medical Officer. And these five reports to G.M. (H.R.).

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TIME KEEPING SYSTEM

ELECON has separate time office helped by Time Keeping Officer, who is

responsible for the function of Time keeping. In Elecon attendance is recorded

with the help of punch cards. The working Hours for workers and Staff is

different. Workers work in 3 shifts and Administrative Staff work in General shift.

Following is the timings for 3 shifts:

First Shift 7:45 am to 4:30 pm

Second Shift 4:30 pm to 1:00 am

Third Shift 1:00 am to 7:45 amGeneral Shift 8:30 am to 5:15 pm

The lunch break for general shift starts from 12:30 pm to 1:15 pm.

All the details of Employees for month are fulfilled in Master Roll. It contains all

the information like Name, Designation, Attendance, Leave balance, Type of

leave.

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RECRUITMENT

Recruitment is understood as the process of searching for and obtainingapplications for jobs, from among who right people can be selected.

Following are the sources of recruitment for ELECON:

1. Advertisement

2. Employment exchange

3. Campus Interview.

4. Notice on the board

5. Internal promotion.

6. Relatives of employees

Following is the recruitment policy for ELECON:

There is no discrimination of cast, sex and creed.

Recruitment is carried for at least two bases (Preliminary and final)

All the interview dates are sent by H.R.D at least 10 days prior.

SELECTION

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Selection is the process of picking individuals (out of the job applicants) with the

requisite qualifications and competence to fill job in the organization. We can say

that Selection is the problem of matching the men to the job.

Following are the Steps ofSelection Procedure for ELECON:

1. Scrutinizing of Application

2. Preliminary Interview

3. Physical Test4. Physical check up

5. Reference Check

6. Preparation of final selection sheet

7. Issue of letter

8. Joining of Job by candidate

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TRAINING & DEVELOPMENT

Training is the systematic procedure to add and to improve skills, knowledge,

and technical know-how of personnel in the organization. It is given to the Non-

Managerial Personnel and its time period is also short. Development is not only

an activity that is desirable but also an activity that an organization must commit

resources to, if it is to maintain the viable and knowledgeable work force. To

improve the quality of managers, company has to spend money and introduce

systematic development schemes for them.

Following are the details ofTraining & Development in ELECON:

In ELECON, the needs of Training are identified and Plans is made and Training

dates are fixed. Film shows, Demonstration, Ship Flooring training (technical

side) etc are the methods of training for Workers. G.D., Case Study, Role playing

etc. are the methods of development for the managerial staff.

ELECON also has In-House Programs, it includes the following:

1. Seminars on E-Procurement

2. Programmes on few branches like Business ethics, Customer focus,

Negotiation

Skills etc.

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3. Guests Talk.

4. Seminars to enhance communication & Presentations Skills, Behavior with

the Guest

External Programs ofELECON include the following:

1. Programmes on performance related matters.

2. Programmes on creating financial management.

3. A Programme on how to manage the Contract labor, Minimum Wages,

Bonus etc

4. A Programme on how to Negotiate.

PROMOTION & TRANSFER POLICY

Promotion means an improvement in pay, prestige, position, and responsibility of

an employee within his organization. Transfers involve the change in job

(accepted by the change in place of the job) of an employee without the change

in responsibility or remuneration. A Transfer differs from the Promotion, latter

involve the change in which the significant increase in responsibility, status, and

income occurs.

In ELECON, Promotion is given toemployee on the basis of following factors:

1. Qualification.

2. Efficiency

3. Experience

4. Performance

5. Merit Based

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In ELECON, Transferis given due to following reasons:

1. Vacancy in other plant.

2. Capabilities of Individuals.

3. Interest

4. Productivity has declined due to the same work.

5. Unsuitable Climate.

MARKETING DEPARTMENT

Marketing is a comprehensive term and it includes all the resources and set of

activities necessary in facilitating the flow of goods and services from producers

to consumers in the process distribution. It is an ongoing and continuous

process. Marketing has often been described as art of selling products. The

most important part of marketing is not selling. Selling is the only tip of Marketing

Iceberg.

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Marketing Department is concerned with the performance of Marketing

Functions. It has the task of influencing level, timing, and composition of Demand

in a way. Marketing manager is the one who forms the marketing plans, Controls

Marketing cost, Supervises sales, Advertisement etc. He is the one searching the

environment for the Marketing opportunities.

In ELECON ENG. CO. LTD, Gear Department is considered Marketing

Department. This Department Carries out all the functions of Marketing. Gears

Sales Department has fourteen different sections like Order Collecting,

Dispatching, Billing, Accounts Section etc. The EMTICI Eng. Ltd. is the sole

selling Agent for Material Handling Equipment (M.H.E.) Division.

MAIN CUSTOMERS

M.H.E. DIVISION GEAR DIVISION

1. Mazgaon Dock Ltd. 1. West Bengal Power.

2. NEPC India Ltd. 2. Channel Port Trust

3. Jindal Steel & Power Ltd. 3. Birla Corp. Ltd.

4. National Heavy Engineering

Company.

4. Bharat Heavy Electrical Ltd..

5. G.E.B.

COMPETITORS

MHE DIVISION GEAR DIVISION

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1. TRF Ltd (Jamshedpur) 1. Shanti gear

2. Tecpro 2. F.L.Smith

3. L & T 3. Premium gear

4. Mcnally Bharat Eng. Co.Ltd. 5. NAW

. 6. Flender

MARKET SEGMENTATION

Market is collection of various Buyers and Sellers who transact over a particular

product or product class. Buyers differ in their wants, Purchasing power,

geographical locations, buying attitude, Habit. And therefore company has to

practice segment marketing.

Market Segmentation is the sub-dividing of market into homogenous sub-

sections of customers where any sub- sections may be selected as a Market

Target to be reached with distinct marketing mix. The basic object of Market

Segmentation is to identify the group of Homogeneous Buyers and to device a

marketing plan suitable to each of these groups.

ForELECON, Customers are not Individual companies, but are joint Individuals

of Core sectors, these companies are wide spread all over the country and to

cater requirements of its customers, Elecon has segmented Market on the

Geographical basis.

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SALES PROMOTION

Sales Promotion consists a wide variety of promotional tools designed to

stimulate a strong market response. Sales Promotion includes tools for consumer

promotion (sample coupons, cash refund offers, price off, premiums, prizes, point

of purchase displays and demonstration).

Sales Promotion is the key ingredient in marketing campaigns. Sales Promotion

consists of diverse collections of incentive tools, mostly short termed designed to

stimulate quicker and or greater purchase of particular products / services by

customers.

Following are the Sales promotion strategies adopted by ELECON:

1. Provides Discounts.

2. Provides guarantee of 12 months from the date of manufacture of

Equipment.

3. Provides after sales product services.

4. Provides Gift articles.

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ADVERTISING

Advertising is the communicative activity conducted through mass educational

media like News papers, Magazines, Radio, and Television, to make the people

aware and informed about the product in the market and also encourage them to

buy.

Advertising is a printed, written, oral and illustrated art of selling. Its objective is to

create in the minds of people individually or collectively an impression in favour

of Advertisers Interest.

ELECON undertakes the followingcreating the awareness:

1. Ads in News papers, Journals, Periodicals, Magazines are given.

2. Press Advertising is done.

3. Video Films are shown to the clients with an aim to persuade them to go

for their products.

4. Trade fairs / Exhibitions are arranged.

5. Direct Advertisements are done. Where Message is directly given to

Industrial users by Mail. Where in Mail is attached with the catalogues.

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DISTRIBUTION CHANNEL

Channel is a route through which good passes from one end to another. Inother words, Route through which goods move from one place of production to

the place of consumption is called Channels of Distribution.

Channel of distribution is also called Trade Channel. Major focus of it is on

delivery and only through the distribution; public and private goods are available

for consumption. They add place and time utility.

In ELECON, there are two types of Distribution Channel, Direct Channel and

Indirect Channel. Under the Direct Channel, there are two parties, Product

passes directly from the Producers to the Customers. Under the Indirect

Channel, the Product moves from the Producers to Agencies, Agencies to Whole

sellers, and Whole sellers to Customers.

MARKETING RESEARCH

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Marketing Research can be defined as systematic collection, analysis, and

reporting of the data and finding relevant answers to a specific Marketing

situations faced by the company.

Marketing Research helps in knowing the needs and demand of different groups

of customers. It can be known whether the product is satisfying the customers.

So that it is planned whether to make necessary changes in the product or not.

In ELECON, Marketing Research is done on the subjects like MARKET TREND,

MARKET SHARE of company, competitors. The Marketing Research at Elecon

is done through Primary Research, Internet, Survey conducted by Third Party.

Research on consumer needs is done & changes in products are made as per

the opinions of Customers.

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FINANCE DEPARTMENT

Finance is usually referred as cash. It is an integral part of life. Every Business

small, medium, large needs finance. Finance should flow in business; otherwise

the business will be ruined. Finance is required for Raw material, Labor, and

Operational, & Administrative needs of Business. Finance is the circulatory

system of the Economic Body of firm.

Today Financial Management had widened its scope. Till, 1950, Finance function

was regarded as the function of raising funds, but now Financial Management

means raising adequate funds at minimum cost and also utilizing them effectively

in the business. Financial management is nothing but management of Inflows &

Outflows of funds.

Finance Department in general is concerned with the efficient use of an important

Economic resource namely, Capital Funds. It keeps information of financial

position of business and also informs when finance is in deficit and when to rise,

from which source.

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In ELECON, the finance department is headed by Vice President (Commercial) &

Chief Financial Officer (CFO), Shri Hemendra .C. Shah. He is accountable to

C.M.D. The D.G.M. of M.H.E, Gear, Tax cell & Legal matters are accountable to

C.F.O. Under the D.G.M. of M.H.E there are five sections accountable to him,

namely Accounts, Costing & M.I.S., Insurance, Finance & Banking, and

Treasury. The D.G.M. of Gear has Finance & A/C section under him. D.G.M of

Tax cell has Section of Tax Cell under him. And Legal matters, Company

secretary, Admin section are accountable to D.G.M. of Legal Matters.

GENERAL SHAREHOLDERS INFORMATION

Annual General Meeting

30th July, 2010 at 11.00 A.M.

Anand-Sojitra Road,

Vallabh Vidyanagar 388120,

Gujarat.

Financial Calendar:

April 01 to March 31

Date of Book Closure:

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1st July, 2010 to 7th July, 2010 [Both days Inclusive]

Dividend Payment date:

On or Before 4th

August, 2010.

Listing on Stock Exchange:

The Companys securities are listed at the Bombay Stock Exchange Limited, &

the National Stock Exchange of India Limited.

Distribution of Shareholding as on 31-03-2010

Category No. of

shareholding

Percentage No. of

shares

Percentage

1-500 44450 83.69 7298882 7.86

501-1000 4198 7.9 3384812 3.64

1001-2000 2175 4.10 3201086 3.45

2001-3000 780 1.47 1999652 2.15

3001-4000 349 0.66 1242051 1.34

4001-5000 280 0.53 1299419 1.40

5001-10000 454 0.85 3237668 3.49

Above 10000 425 0.80 71197940 76.67

TOTAL 53111 100.00 92861510 100.00

TABLE 3

DIVIDEND HISTORY

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Year Rate (%) Per Share [Rs] Amt. (in Lacs)

2004 -2005 25 2.50 14.11

2005 -2006 50 5.00 30.65

2006 -2007 75 1.50 46.38

2007 -2008 75 1.50 139.29

2008 -2009 75 1.50 139.29

2009 -2010 75 1.50 139.29

TABLE 4

CHART 6

The above table and graph shows the rate of dividend given in different financial

years. In the year 2004-05, 25% dividend was declared to shareholders, and at

that time, the Face value of shares was 10 Rs. So the per share dividend

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became 2.50 Rs. and in the same way in 2005-06, the rate was 50% which made

5 Rs. dividend per share on the face value of 10 Rs. Later the Face value

became 2 Rs. and the rate remained 75 %, giving 1.50 Rs dividend per share.

The amount of the dividend is also rising and it is constant in 2007-08, 2008-09 &

2009-10. And it is expected to be constant in 2010-11.