Elecon to foray into wind mills

Mumbai, June 15 (UNI) Gujarat-based leading manufacturers of Material Handling Equipments (MHE) and gears, Elecon Engineering Company Limited (EECL) today announced its foray into wind mills, besides expanding its activities.

EECL Chairman and Managing Director Prayasvin Patel, talking to reporters after chairing company's board meeting here, said the board has approved a total capital expenditure plan of Rs 154 crore for the current financial year, earmarking Rs 60 crore investment for setting up the facility for the proposed Wind Mill Gear Box.

The company plans to invest Rs 54 crore and Rs 40 crore respectively in expanding its existing MHE and Gear division respectively, he said.

Mr Patel said the company has decided to make an additional investment of Rs 100 crore every year for next five years.

The EECL has signed License Agreement with Turbo Winds, Belgium, for technology tie-up in connection with its new foray in wind mill.

It has also signed an agreement with C-Wet for certification of 600 KW wind mills.

''Capex (capital expenditure) of around Rs 8-10 crore is required for this activity in the first year. We are targetting to sell 50 units in a year that can go up to 300 units per year in a phased manner,'' Mr Patel said.

He said the EECL is looking for a joint venture partner for its wind mill project and is in talks with an European company for the proposed 50:50 joint venture. However, Mr Patel did not disclose the company.

The new foray would be made a seperate division under the roof of EECL, Mr Patel informed.

UNI