Disclaimer• Except for the historical information contained herein, statements in this

presentation and the subsequent discussions, which include words or phrases such as “will”, “aim”, “Will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”,

“plan”, “contemplate”, “seek to”, “future”, “objective”, “goal”, “likely”, “project”, “should”, “potential”, “will pursue”, and similar expressions or

variations of such expressions may constitute “ forward-looking statements” not limited to expected future business and financial

performance of ELECON. These forward-looking statements are based on Managements current expectations and are inherently subject to

uncertainties & changes in circumstances and involve a number of risks, uncertainties and other factors that could cause actual results to differ

materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to

successfully implement our strategy, our growth and expansion plans, our provisioning policies, technological changes, investment and business income, cash flow projections, our exposure to market risks as well as

other risks. Investors are advised to form their own judgments and conclusions before any investment related decisions. ELECON does not

undertake any obligation to update forward-looking statements to reflect actual results or any change in events, conditions, assumptions or other

factors.

Vallabh VidyanagarGujarat

Elecon Engineering Company Limited

ELECON ENGINEERING COMPANY LIMITED

India’s Largest Manufacturer of Material Handling & Power Transmission Equipment

The perfect blending The perfect blending of Excellence, of Excellence, Expertise, Experience Expertise, Experience and Eminence.and Eminence.

Company Profile

Established in 1951, Elecon is one of the 3 largest manufacturers of MHE and Industrial Gears in South East Asia.For over 5 decades, Elecon has pioneered breakthrough innovations.

Elecon has cast itself into the mould of a visionary on all operational fronts,

from technology to quality standards,product to value addition

and performance.

“Always a step ahead in technology”

Synopsis

Bulk Material Handling Plants

Industrial Gears

Windmills

Business Portfolio

Experience

• Stacker Reclaimer at SantaldihPower Station in 1967.

• Barrel reclaimer at Bokaro steel plant in 1968.

• Case hardened and ground helical modular gear boxes in late 70’s.

First to Introduce in India

Experience

• Mono block universally adaptable design worm gears.

• Mono block universally adaptable modular helical series.

• CNC machinery.

First to Introduce in India

Reversible Type Bucket Wheel Stacker-cum-Reclaimer.Capacity 2,000 TPH of coal.

Semi-mobile transportable Crusher (capacity 1,500 TPH at mae Moh mine, EGAT, Thailand.

Crawler-mounted Tripper, weighing 500 tones in operation at Neyveli Lignite Corporation’s open cast mine handling overburden at 11,000 tones/hr.

One of the Largest Shiftable Belt Conveyor System in the World handling overburden at 20,000 tones/hr. Capacity at Neyveli Lignite Corporation, India

Super NU Series Worm Gear

EP Series Spiral Bevel Helical Gear

Fluid, Geared and Flexible Couplings

Gear Plant having an area spread over 1,73,098 Sq. Meters

Gear Manufacturing Shop

Spiral Bevel Hard Cutting Machine –KLINGELNBERG KNC60

Large Machining Centre For Gear Bodies

2 Meter CNC Gear Grinder first in India

Large Vertical Machining Center

Infrastructure

• World class manufacturing plant.

•Majority of all machines are computer controlled (CNC).

• State-of-the-art quality control equipment.

• CAD/CAM in engineering and manufacture

• Online Production, Planning & Control with Oracle applications ERP.

Manufacturing

A workshop area spanning 1,17,000 sq. mt. for MHE, and 1,73,098 sq. mt. for GEAR

Division.

Production Facilities

Design and Engineering

Design facility has 92 design engineers using AutoCAD and Pro. Engineer software.

3D Solid Modeling, Finite Element Analysis (FEA) are used to design, check and analyse, MHE machines and Gears.

Production Facilities

Production Facilities

• The Company has invested Rs. 43 crore to cater to increasing demand over the last five years.

Manufacturing activities in the Heavy Fabrication Shop

Boring of the upper carriage of a stacker-reclaimer on a large horizontal boring machine

• First industrial gear company to achieveISO 9001 certificate in 1994 also the firstgear company ISO 9001:2000 version in2001.

In Quality We Never Compromise

Three axis CNC coordinate measuring machine

P-65, KLINGELNBERG Fully Automatic Gear Measuring Center

New Generation TechnologyOnly Company in India

• capable to design complete Stacker Reclaimer Machine from basics.

• able to design open cast mining Conveyors of high capacity in the range from 11000 to 20000 tonnes / hour.

• capable to design Planetary gear boxes for various applications.

• able to manufacture and taste very large gear boxes for the Indian Navy.

Elecon Group spends at least Rs. 2 Croreannually on information and technology.One Computer Terminal Per person in theoffice.Fiber optic network of 1000 ComputerTerminals spread over radius of 1.5 KM.Web based Oracle application ERPimplemented for total integration ofProduction, Planning, Purchase, Sales,Order Execution & Finance.

I.T. INFRASTRUCTURE

Highlights

• Awarded a prestigious contract for supply of six CODOG Marine Gears for Frigate Battleships capable of transmitting 22,000 kw each, weighing 55 tons - executed in year 2003-2004.

Highlights

• Received for the first time in India an order for large size planetary Gear Boxes for Sugar Mills from the BajajHindustan & Harinagar Sugar Mills, transmitting 1400 & 1500 HP respectively.

Dual Tandem Drive - Developed for Sugar Mill

Hot Sizing Mill Gear Box. Type: SBN 2 x 570 -70S -S/SO

www.elecon.com

• Almost all our Applications are Web Based from where our Customers and Marketing Teams can query Information from any part of the world.

New Delhi

Ahmedabad

Bangalore

Mumbai

Chennai

Calcutta

Secunderabad

NagpurJamshedpurBilaspur

DhanbadAsansol

Pune

VallabhVidyanagar

Elecon Service NetworkElecon Service Network

Business Portfolio

Bulk Material Handling Plants

CORE SECTOR INDUSTRIESWE SERVE

UNDERTAKING TRUNKEY PROJECT OF

Coal handling plants for Thermal Power Projects.

Overburden and Coal/Lignite handling System for Open Cast Mines.

Raw material handling, Crushing and blending system for Cement Plants.

Ore Handling and Stockyard Equipment for Steel Plants.

Product & Bag handling Plants.

WE SERVE Continued…

The factors contributing to achieve these credentials are :

Technological Back-up :We have been able to achieve expertisein Design & Engineering by virtue of ourcollaborations in the past for various equipments,with :Weserhutte : Stockyard equipment and also

specialized open Cast Miningequipments and ShiftableConveyor.

Strength

Strength Continued…

Gustav – Schade : Scrapper Reclaimersfor Cement &Fertilizer Projects

Aubuma : Crushers

Strachan & Hansaw : Wagon Tipplers and

associated marshalling

equipments.

450 to 670

Total …….30 to 453002006-153,00060,000PORTS420 to 252002006-152,00027,500COAL3

100 to 150

9002006-2012,500262,000STEEL2

300 to 450

3,0002006-1530,000220,000POWER1

(Rs. in Crore)

Anticipated Annual Share by Elecon

Annual Average

Implemen-tationPeriod

Investment related to Material Handling Package

Investment Total

Industries Sr. No.

FUTURE INVESTMENTS IN CORE SECTOR INDUSTRIES: SUMMARY

Key CustomersPowerPower

Reliance EnergyReliance EnergyMaharashtraMaharashtra Electricity BoardElectricity BoardTamilnaduTamilnadu Electricity BoardElectricity BoardNTPC NTPC

SteelSteelSteel Authority of IndiaSteel Authority of IndiaIndian Iron & SteelIndian Iron & Steel

Railways Railways Indian Railways Indian Railways

Key Customers

PortsPortsChennai Port TrustChennai Port TrustMarmagoaMarmagoa Port TrustPort TrustKandlaKandla PortPort

Mining & CoalMining & CoalNeyveliNeyveli Lignite CorporationLignite CorporationNational Mineral Dev. CorporationNational Mineral Dev. Corporation

Cement Cement Gujarat Gujarat AmbujaAmbuja Cement/ ACCCement/ ACCJ.K.CementJ.K.Cement

For close to half a century, Elecon has contributed to nation building activities through infrastructure development and bulk material handing solutions there by positively impacting the livelihood of millions and promises to do so in future, keeping the interest of our customers foremost in our minds and deeds.

Courageously we shall continue to improve and to adopt to changes and be a market leader by always remaining a step ahead in technology and quality, and strive to widen our horizon through globalization.

Vision M. H. E. Division

Vision M. H. E. Division

We shall meet the aspirations of our stake-holders and enhance their wealth.

We shall create a joyful and happy Eleconfamily of smiling faces through love and honesty.

We shall always remain consious of our social obligations and adopt environment friendly practices.

Business Portfolio

Industrial Gears

Elecon - Gear Division

Products

•• Helical, Spiral, Bevel, Modular, Planetary

Gears.

•• Customized power transmission

products.

•• Couplings, Geared Motors.

Solid Shaft Helical Gear Unit

EP Series Spiral Bevel Helical Gear

Super NU Series Worm Gear

Planetary Gear Box

Duel Drive Marine Gearbox - CODOG BGS 192.5 for Indian Navy - for Stealth Warship of Class P 17

Elevator / Lift Application Worm Gear

We drive the industry with precision toenable them to generate wealth.

We guarantee product performance toInternational standards.

We shall always be the leader by continuously upgrading and innovating our products to meet the diverse needs of our domestic and international customers to remain always a step ahead.

Vision (GEAR Division)

We mould ourselves to the changes and the challenges andresponding to them by providingan environment of entrepreneurialexcitement and teamwork.

Vision (GEAR Division)

Key Customers• Power

– NTPC– MSEB

• Mining– NMDC– Neyvely Lignite

Corporation

• Defence– Indian Navy– Cost Guard

• Windmill– NEPC– Pioneer Wincon

• Sugar– Bajaj Hindustan Ltd– Harinagar Sugars Ltd

• Palm Oil– Felda (Malaysia)

Key Customers

• Chemical– Rashtriya

Chemicals & Fertilizer

– Alembic

• Plastics Industries

• Textile Industries

• Steel– SAIL– TISCO

• Sponge Iron– Jindal Steel & Power– Nova Iron & Steel

• Cement– Gujarat Ambuja/ ACC

Business Portfolio

Windmills

Windmill Introduction

The wind electric generator, a greenpower source has been made considerableprogress in last few years.

The total installed capacity in India is 2500mw up To March-04 and only in year 04-05it was 600 mw which Is all time high.

Windmill Introduction

The target for 2006 – 2007 is 1500 mwAnd it is expected to exceed the target.

The target for 2007-2012 is 3500 mwwhich is expected to get revised inview of the momentum generated inpast few years.

Note :Gross potential is based on assuming 1% of land availability for wind power generation in potential areas.

(Source : MNES)

45195Total450West Bengal10

3050Tamil Nadu95400Rajasthan81700Orissa73650Maharashtra65500Madhy Pradesh5875Kerala4

6620Karnataka39675Gujarat28275Andhra Pradesh1

Gross Potential (MW)StateSl. No.Estimated Wind Power Potential in India

Windmills Manufactured/Installed

300 KW : total 38 Wind Mills installed successfully from the year 1995 to 2000.

600 KW : total 5 wind mills are running from the year 2001 to 2005.

Corporate Strategy

• Strengthen multiple drivers of growth invarious products to exploit marketopportunities.

• Develop new products to create new avenues for growth.

• Strengthen organization to manage multiplebusinesses with cost efficiency.

• To become financially strong so that one can face any severe recession.

Corporate Strategy

Corporate Strategy

• Maintain state-of-the-art technology edge.

• Benchmark against the best in all businesses

• Market opportunities using technology &reduce cost.

• Improve delivery and performance.

• Defence - Navy (Preferred Supplier).- Air Force.

• Windmill Farms.• Thrust areas for Exports (South America,

Middle East & Thailand).• Debt free in 2 years except for Working

Capital.• High Speed Gears.• Plastic Industry.

Future Plans

• Increase Sale of Windmill Gears.

• Aggressively planning for Recession / economic slow down.

Future Plans

Exports

Elecon Global Sales NetworkElecon Global Sales Network

Branches : Australia, Singapore, South Africa & Middle East

Asia Asia China Bangladesh Sri LankChina Bangladesh Sri Lanka a

Middle EastMiddle East Australia Dubai MuscatAustralia Dubai Muscat

UK UK Jordan Indonesia Oman Jordan Indonesia Oman

South East AsiaSouth East Asia Thailand Malaysia Philippines Thailand Malaysia Philippines

EuropeEurope Singapore Germany Brazil Singapore Germany Brazil

South AfricaSouth Africa USA Chile Uganda USA Chile Uganda

Saudi ArabiaSaudi Arabia

Export Markets

Growth in Exports

10

2325

FY 03 FY 04 FY 05

In Crore Rupees

Financials

Financials

158 161

278

FY 03

FY 04

FY 05

MHE28%

Gear72%

FY 05Rupees in CroreTurnoverTurnover Segment mixSegment mix

73%

Financials

Spares38%

Mining9%

Power25%Port

4%

Fert5 %

Stee l1%

Cement5%

Others13%

FY 05

Industry wise sale

MHEMHE

FinancialsIndustry wise sale

FY 05Stee l31%

Defence10%Mining

7%

Others27%

Cement6%

Plastic3% Fert

5%

Rubber3%

Lift4%

Sugar4%

GEARGEAR

Financials

16 17

35

05

10152025303540

FY 03 FY 04 FY 05

22

10

0

2

4

6

8

10

12

FY 03 FY 04 FY 05

Rupees in CrorePBDITPBDIT PATPAT

Financials

%

6

8

11

FY03 FY04 FY05

1.11.3

3.6

FY03 FY04 FY05

PBDIT MarginsPBDIT Margins Net Profit MarginsNet Profit Margins

Financials

Face value of share- Rs 10/- each

%

3.1 2.8

17.8

FY 03 FY 04 FY 05

3.4 3.8

14.7

02468

10121416

FY03

FY04

FY05

RONW

EPSEPS Return on NWReturn on NW

In Rs.

slaicnaniF

23.31

88.1

86.285

ceD40

33386.75).nna( SPE).sR ni(

33341.8T A P

69216.01T B P4659emocnI latoT

htworG)%(

ceD50

gnidne retrauQ

00110022003300440055006600770088009900110000

DDeecc--0044 DDeecc--005500

11

22

33

44

55

66

77

88

99TToottaallIInnccoommeePPAATT

erorC ni seepuR

Financials

18

444048

0

10

20

30

40

50

60

Dec-04 Dec-05

Mhe

Gear

Segment wise sale 144 %20%

Quarter ending Dec-05Rupees in Crore

slaicnaniF

54.9

00.4

45.6

771

ceD40

32369.93)nna( SPE).sR ni(

32339.61T A P

34244.22T B P

84262latoTemocnI

htworG)%(

ceD50

gnidnE shtnoM eniN

00

5500

110000

115500

220000

225500

330000

DDeecc--0044 DDeecc--005500

22

44

66

88

1100

1122

1144

1166

1188TT..IInnccoommee

PPAATTerorC ni seepuR

Financials

45

102

130153

020406080

100120140160180

Dec-04 Dec-05

Mhe

Gear

Segment wise sale for Dec 2005 (nine months)

127% 18%

Rupees in Crore

Financials

Order book Gear20%

MHE80%

594Total476Mhe118Gear

Rupees in Crore

Segment

FinancialsTurnover Per Employee

24.07 24.20

41.17

-5

1015202530354045

2003 2004 2005

Series1

Rs in Lacs

FinancialsMarket Capitalisation

4.35 14.88

97.02

533.09

0

100

200

300

400

500

600

2002-03 2003-04 2004-05 27 Jan 06

Series1

Rs in Crores

Financials

624

52

FY 06

FY 05FY 04

Capacity AdditionRupees in Crore

Financials

The Company has signed documents for issue of FCCB worth US $ 18 mn

consisting of two tranches of US $ 9 mneach. Out of which, company has

issued 9000 0 .5% bonds aggregating to US $ 9 mn at a premium of 1% on

20th December 2005 mainly to finance capex requirements of the company.

FinancialsMarket Share of Gear Industry

Elecon26%

Shanthi17%

Premium17%

Flender10%

NAW6%

Others *24%

* Others inclusive of SEW, Bonfoglioli, Essenpro, Rossi as well as imported gears

* Turnover of Shanthi, NAW & others are inclusive of Geared Motors.

Elecon Group Of Companies

Material Handling EquipmentMaterial Handling Equipment Gear DivisionGear Division

EleconInformationTechnology Ltd.

POWER BUILD LTD.

POWER BUILD ELECON GEARS LTD.