News  »   EMCO plans to switch to power generation and management

When EMCO Limited announced its plans to build a 540 MW thermal power station in power-starved Maharashtra recently, it meant a quantum leap for a
company that was once content with manufacturing small capacity transformers. From scaling up its transformer business, to becoming an end-to-end player in the power transmission and distribution business, the company has done it all, just in a span of over two decades. Plans of getting into generation only cement the company’s ambitions of becoming into a complete player in the power sector, going beyond transmission and distribution.

Started as a family business by one CD Gandhi in the 1960s, the company, then known as EMCO Transformers, manufactured small power transformers and had a turnover of Rs 2.5 crore. Then the Jain family from northern Maharashtra’s Jalgaon district bought it over in 1987. Two young family members—Rajesh and Shailesh Jain joined the business after completing their education soon after. From being a small company for over two decades, EMCO changed its trajectory and posted a turnover of Rs 1,100 crore in FY 07-08.

The journey, however, was not a cakewalk. EMCO faced stiff competition from established players such as ABB, Alstom (now Areva), BHEL, Crompton Greaves, and Havells, making it hard to sustain, forget grow, at a fast pace. It required some out-of-the-box thinking and innovative products. “We are above par in technology and have invested heavily in our people, their training and development,” says EMCO chairman Rajesh Jain, when asked how the company tackled competition.

After taking over, the Jains began manufacturing bigger transformers and electricity meters. Soon, they were building sub-stations and further established their presence in the transmission and distribution space by acquiring Vadodara-based Urja Engineers that specialises in laying transmission lines. Jain says the central theme, which the company kept in mind while diversifying into allied businesses was, “How can we sell more services to the same set of customers who are being served by us for years? We have to keep them with us and offer an array of services catering to all of their needs.”

Simultaneously, the company was also concentrating on the export market and today sells its products, primarily transformers, in over 30 countries worldwide, to corporations such as Bectel in the US and BDO, a leading mining company in Oman. Exports contribute around 11% or Rs 110 crore to the group’s turnover. The company has identified Africa as an emerging market and to make further inroads, has formed a joint venture with Edison, a South African player in the power transformers space. EMCO will now jointly manufacture and market products in the African market.

Complete article:
http://economictimes.indiatimes.com/Corporate_Trends/EMCO_plans_to_switch_to_power_generation_and_management/articleshow/3563677.cms