Carving growth out of the auto sector

ElectroMech is looking at growth from the burgeoning auto sector

Pune-based ElectroMech is a leading brand in engineering, manufactur-ing, and servicing industrial overhead cranes, gantry cranes, electric wire rope hoists and customised material handling solutions. Vinayak Mehendale founded the company in 1979 after having worked in several crane manufacturing companies. He, along with a group of 3 other engineers, set up a factory at Chinchwad and started turning out EOT cranes, hoists and related material handling equipment. "Numerous challenges emerged in the early days," says Tushar Mehendale, managing director of ElectroMech. "They were typical of those faced by any start-up and it was sheer grit and determination of the promoters that enabled them to conquer the challenges and establish the business." 

In the year 1990, ElectroMech undertook an expansion drive, which included the shifting of business to a new location in Pimpri. Over a period of time, in October 1993 to be precise, Vinayak Mehendale became the sole owner of ElectroMech, and the revenue, which was a modest of Rs 25 lakhs, jumped to Rs 5 crores in the financial year 1998-99, as the company flourished. The demise of Vinayak Mehendale in early 2000 put his son Tushar in the driver's seat. Guided by the dedicated team of people at ElectroMech, the time ahead was to be the most demanding for Tushar and the company until the financial year 2003-04 when the revenue crossed the Rs12.5-crore mark. "The years 1999-2000 and 2000-01 were some of the worst years faced by the Indian industry. ElectroMech's sales for FY 2000-01 were just to the tune of Rs 3.25 crores. Slowly and steadily, we worked through the trying times and by FY 2003-04, the sales were to the tune of Rs 12.5 crores," states Tushar while touching upon expansion. 

In 2004, a new factory was started at Pirangut near Pune in the name of ElectroMech Material Handling Systems (India) Pvt Ltd. Production commenced at the fag end of December that year accompanied by modest revenue of Rs 40 lakhs in the year 2004-05. While a business of Rs 70 crores is estimated for FY07-08, as a group, ElectroMech is set to achieve a gross turnover in excess of Rs 90 crores, says Tushar. "Coupled with the high growth in demand for cranes in the Indian industry on account of the massive spate of capacity expansion, ElectroMech has been steadily expanding its own capacities at Pirangut and currently has under the roof a total manufacturing area of almost 10,000 sq.m making it one of the largest single crane manufacturing facilities in India," adds Tushar, tracing the high growth curve of the industry. 

For a company that started with the manufacture of EOT cranes, hoists and related material handling equipment, the current product portfolio of ElectroMech includes overhead cranes - single girder and double girder, electric wire rope hoists, electric wire rope winches, stacker cranes and customised material handling equipment. While the company is poised to dispatch almost 500 cranes in the FY 2007-08 making it the largest single crane manufacturing company in India, it is also planning to manufacture 2000 cranes annually by the end of FY 2008-09. 

Giving an insight into the working of ElectroMech, Tushar remarks that his company has a longstanding experience in designing, manufacturing and commissioning of the above equipment. "We have entered into a strategic tie-up with ABUS Kranesysteme of Germany." 

ABUS is a world leader in industrial cranes and ElectroMech is the exclusive representative of ABUS in India. ElectroMech imports crane kits from ABUS and fabricates the structural components in India. Pointing at the product range of ELectroMech, Tushar quips: "With products from our company finding use in almost all kinds of industries that involve discrete material handling, our clients are spread across sectors like infrastructure, construction, automotive and ancillaries, metal processing, general manufacturing, heavy fabrication, power generation, etc." 

Touching upon the auto sector, Tushar remarks that the auto sector contributes nearly 30 per cent of the company's revenues. Adding that it is a handsome contribution, Tushar states that his company is a supplier to both the OEMs as well as the auto ancillaries. "Be it companies like Tata Motors, Maruti Suzuki, Toyota, Volvo, Mahindra & Mahindra, Bajaj Auto, Force Motors (MAN) or Mercedes Benz India, they rely on ElectroMech for handling their valued products," exclaims Tushar. "We have also supplied equipment to trailer manufacturers like P L Haulwell and Tata International (DLT), and in addition to auto sector, ElectroMech also supplies a lot of equipment to the allied sector of construction equipment manufacturers. If you visit JCB, Caterpillar, Telcon, Sandvik (Mining & Construction), you will see ElectroMech equipment," he adds. Auto ancillary clients include tier suppliers like Tata Autocomp group, JBM, International Auto, Apex Auto, Anusaya, Ganage group, Visteon, Enkei Castalloys, Bharat Forge Group, Rishi Laser, Rinder, Sekurit St. Gobain, etc. ElectroMech has also supplied unique equipment to auto research institutes like ARAI in Pune. 

In association with ABUS, ElectroMech supplies light crane systems, which are referred to as workstation cranes, to the auto sector. These comprise extruded hollow sections comprising the main structural part and very compact electric chain hoists running inside these sections. "Even though the travel movements of this crane system are manual, they literally move by the tip of the finger. ABUS has installed such systems in scores of auto companies like Audi, Volkswagen, BMW, Mercedes, Rolls Royce, Volvo at their various worldwide locations," says Tushar. "In addition to the light crane systems, ElectroMech also offers cranes for handling heavy loads in the auto industry like complete die blocks. A lot of press lines in the Indian auto industry depend on our equipment for their handling needs. We provide custom engineering solutions for specific applications in the auto industry," explains Tushar. "Case in point is the frame transfer cranes used at Tata Motors ACE plant in Rudrapur." 

Ask Tushar about the needs of the auto sector and he states that the requirements of the auto industry are very demanding and exacting. Given the complicated supply chains and efficient manufacturing systems, it is of paramount importance to ensure that the production is not hampered on account of any break downs in the handling equipment. Therefore a lot of engineering needs to go into the design and manufacturing to ensure maximum uptime and a very high MTBF/MTBR. 

ElectroMech has over the years evolved its technology to incorporate sophisticated electronics and control systems to do just this. Additionally there are unique handling requirements in the auto industry to cater to the efficient workflows of the assembly lines. ElectroMech's engineers work closely with the clients, understand the exact requirements and design a unique solution that will cater precisely to their requirements. SMED or Single Minute Exchange of Dies is a vital requirement of all press shops and hence ElectroMech has developed unique anti-sway systems to ensure that the movement of the dies from the stacking area to the bolster is done in the smallest possible time in an extremely safe manner. 

Competition, according to Tushar, is split along the lines of organised and unorganised sectors. It is also split geographically. Quoting that there are very few players in the Indian industry like ElectroMech who can cater to the exacting requirements of top industrial groups, Tushar Mehendale opines that his company believes in service being of paramount importance. "Be it pre-sales service or post-sales service, we go to great lengths to ensure that client satisfaction is maximised. In order to enable quick decision making, our sales team is fully trained, equipped and empowered to provide complete pricing and technical details on the spot. We have a separate Order Processing cell within our company that monitors closely each and every order and acts as a single point contact system for the customers with the company during the order execution phase," elaborates Tushar. The company has a huge team of service engineers spread out all over the country to provide immediate support in case of any unforeseen breakdowns or for preventive maintenance. "And last but not the least," states Tushar, "it is our service capability built over the years that is one of our major strengths. It is something that the competition finds very hard to emulate."

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