BACKGROUND ABOUT THE COMPANY
Electrex India Limited (EIL) was incorporated on 22nd December 1982 as a private limited company. It was converted into a Public Limited Company on 21st June 1989.
ELECTREX was initially set up as a S.S.I unit for manufacturing Power Tools. In the initial phase of the project Canara Bank invested Rs.1 Cr as Venture Capital while K.S.F.C and IDBI assisted the project by providing Seed Capital and Soft Loan apart from Term Loan. Subsequently Hitachi Koki Co., Ltd., world’s 4th largest manufacturers of Power Tools invested Rs.25 Lacs towards Equity Capital of the Company and extended Technical Collaboration.
EIL went public in 1993. The company’s initial public offer (IPO) in November 1993 was placed at a premium of Rs.40 per equity share of Rs.10 each and received very good response and was over subscribed many times. EIL’s shares were initially listed on (i) BSE (ii) NSE (iii) Bangalore & (iv) Ahmedabad stock exchanges. After the listing in the year 1994, the shares were actively traded in BSE and had touched high of Rs.180. The shares of the company are presently under the suspended group due to penal (non payment of yearly listing fees) at BSE. The Company is now in the process of complying all listing regulations for re-listing of it’s equity at BSE.
EIL has manufacturing facility situated at Peenya Industrial Area, Bangalore with land area of 3.16 acre of land (1,37,415 sq.ft). This was originally allotted by KIADB (Karnataka Industrial Areas Development Board) on lease-cum-sale basis. It is now free-hold property of the Company.
EIL has two blocks of constructed factory area of 50,000 sq.ft.
EIL started with a manufacturing capacity of 7500 tools per annum and now has installed a capacity to manufacture more than 5,00,000 tools per annum.
EIL had entered a technical collaboration with Hitachi Koki Co. Ltd, Japan in 1988 and thereafter have absorbed the technology for manufacturing power tools. EIL presently have an integrated manufacturing facility with equipped research and development facility.
It has strength of 170 employees and same number of contractual labor with an average age of less than 40 years and having over 15 years experience with EIL.
ELECTREX has created a Revolution in the way Power Tools are used in India. Until ELECTREX launched niche products for specialist applications like Marble & Granite cutting and polishing Power Tools were generally limited to a common Drill or a Grinder that too used mostly by institutional customers. The over all size of the Indian market was then small with limited range, manufacturers who made old out dated models which were extremely price prohibitive for an average common customer to buy and use.
ELECTREX entered the business of manufacturing Power Tools with the aim of providing a variety of specialty tools to common man at an affordable price. The mantra of International Quality at Indian Prices helped the company to create Demand to a level which was unheard earlier. This propelled common man like Masons, Carpenters, Electricians, Contractors, to abandon their old style of working manually with no tools and switch over to using time and labor saving and extremely productive and efficient tools to carry on their trade or work.
The result of this understanding on the part of these uneducated but skilled labor was almost a phenomena in the sense that having realized Economic Value they get by using these Niche Tools in their daily operations they then dreamt of owning a Tool and being self employed by themselves. What followed thereafter is a History. “Power Tools” as a Product started getting noticed at every level - from an un-initiated user to a Shop Keeper to an Ancillary prospect. All of them saw a Great value and business opportunity. This led to expansion of market – both in terms of number of Shop keepers who began to display and sell power tools to SSI & SME segment units who felt business potential in manufacturing and supplying Spare Parts & Components not only to ELECTREX for it’s production of tools but to end users as replacement parts for after sales service. Thus Power Tools market started growing in leaps and bounds creating jobs for Millions of people all over India. Most importantly it created Self Employment among Millions of Indians with barely an investment of few thousands of Rupees. This is the single biggest contribution of ELECTREX.
Indian Market Size for Power Tools
Tools constitute major chunk of the Power Tools Market. Break-up of Indian Power Tools
Market Spares, 11% Accessories, 28% Tools, 61% Base Market Size: Rs.1,500 Cr.
Drills, Grinders & Cutters are the most sold tools in the market. Together they constitute around 2/3rds of the total tools sold Blades, Drill bits and Grinding wheels constitute more than 3/4th of the accessories market. Chinese players compete on an equal footing with branded manufacturers in the accessories market
Amongst spares the most sold products, carbon and armature, accounting for almost 80% of the total spares market
- Stone Cutters
- Electric Drills
- Circular Saw
- Angle Grinders
- Rotary Hammers
Power tools are used in a broad array of commercial or industrial applications such as new construction, repairs and maintenance of structures, fabrication, assembly and manufacturing of all kinds, as well as various hobbies and craft (wood working) activities
World Power Tools Market
The demand for Power Tools across the World has increased from USD 14 billion in 1999 to USD 21 billion in 2009 reflecting accelerating growth in developing regions, with the m ost promising opportunities occurring in Latin America, Africa/Mid-East, and Asia-Pacific The national markets of Asia-Pacific, Africa/Mid-East, and Latin America are smaller and less developed but offer significant growth potential. The suppliers are often local and small and function in a fragmented sector. Commercial users accounted for 70 percent and households for 30 percent of total sales
Commercial / Industrial: Consists of occupations such as
Carpenters and other construction workers, - Painters - Mechanics - Plumbers - Electricians - Utility workers - Landscapers - Manufacturing employees - Consumers / Household: These are domestic users which in Power Tools parlance are known as DIY (Do-It-Yourself) users. Power Tools are used as Production Aid Tools in all most all types of industries like Engineering Workshops, Fabrication Shops, Maintenance Departments etc. Some of the major users are Defence, Railways, L&T, BEST and all Public and Private Sector Undertakings.
India has been one of the best performers in the world economy in recent years
India’s Economy has grown at a far better pace than the world economy over the last decade.* In spite of the global recession, India still managed to achieve a growth of 6.7% in its GDP India's manufacturing sector is on an uptrend with the majority of sectors recording positive trends .The forecast for the construction industry in India is also encouraging with a growth of 9% estimated over the next 3 to 5 years
The growing economy also presents a rosy picture for the power tools industry for the coming years
Demand for Power Tools is expected to keep growing at a healthy rate in the coming years due to overall improvements in economy, expansion in infrastructure and construction.
Power Tools are a must in any cutting , construction or interior projects for all kinds of cutting , grinding , polishing and / or sawing operations in Wood , Metal , Concrete , Marble , Granite or any other types of materials.
Brand – ELECTREX is a generic brand in the power tool sector.
Presence in the power tool industry since last three decades.
Manufactures wide range of products ranging from cutters, drills, saws grinders, polishers etc.
- Cleaning and other applications
Well equipped for future growth with no significant investment in capacity.
Technically skilled and experienced employees and workforce with an average age of less than 40 years and having 15 years of experience with EIL.
Superior technology – Technology absorbed from Hitachi Koki Co. Ltd, Japan.
Distribution network – Pan India Distribution Network