Nelco bags Rs 100-crore defence order
By Pradeep Rane | 13 Mar 2002
Mumbai: National Radio and Electronics Company (Nelco), the consumer electronics, business systems and office products manufacturer, is understood to have bagged two major orders worth Rs 100 crore from the defence department.
Sources say the company is expected to get a couple of more orders from the department - a development that would boost its bottomline. The order is likely to change the fortunes of the company, as defence orders, traditionally, have a higher operating margin.
Nelco will see a substantial growth in its annual turnover, which stood at Rs 122 crore in the financial year 2000-01. The sources say the impact of the existing Rs 82.6-crore order from the defence is expected to be felt in the second half of the financial year 2002-03 due to the likely completion.
Nelco posted an earning per share (EPS) of Rs 0.42 for FY2001 (year ending June). It had incurred a loss of Rs 13.5 crore in the first half of the current year as compared to a loss of Rs 10.4 crore in the corresponding period last year. The company share currently rules at around Rs 26 on the Bombay Stock Exchange.
Nelco has technical collaboration and technical transfer agreements with the UK-based Serck Control for 16 RIT industrial microcomputers, and with Teleglobe, Canada, for data communication networks. It introduced telebanking in Indian nationalised banks and computerised more than 65 branches of 28 banks all over the country.
The company had also introduced the country’s first LAN interconnectivity products. It also diversified its activities in the electronic field, and manufactures televisions, computer and telecommunication systems, as well as industrial systems.
The sources say Nelco plans to set up a new unit to manufacture and sell telecommunication systems, which could, again, add substantially to the bottomline. Earlier, Nelco transferred its business systems division to a new subsidiary - Nelito Systems, a joint venture floated with Itochu Corporation of Japan.
Nelco was earlier selected by Chittararanjan Locomotive Works for the supply of power-control and auxiliary equipment of 6000 HP AC locomotives. This project was executed successfully in 2001 and was approved by RDSO. The company had earlier entered into an agreement with the US-based global electronic major General Electric to provide state-of-the-art drive-and-automation systems for the metal industries in the country.
In 2001, the company had executed SCADA contracts for Tata Power, Indian Railways, ONGC and Power Grid. Another major work was the construction of the Technopolis Knowledge Park at Andheri, Mumbai, which was completed with the assistance of Tata Housing Development Company. The sources say Nelco’s Rs 82.6-crore contract for the supply of unattended ground sensors to the Indian army, for deployment at strategic locations covering a supply of 324 sets, is in progress.
The company is expecting further orders for the next three years, and, as the sources say, “the next defence requirement is going to be several times bigger than the present order size.” The manufacturing of the product has been undertaken by the company’s Mahape facilities, based on the technology from Eagle-Telonics, US.
Sources say the company is expected to get a couple of more orders from the department - a development that would boost its bottomline. The order is likely to change the fortunes of the company, as defence orders, traditionally, have a higher operating margin.
Nelco will see a substantial growth in its annual turnover, which stood at Rs 122 crore in the financial year 2000-01. The sources say the impact of the existing Rs 82.6-crore order from the defence is expected to be felt in the second half of the financial year 2002-03 due to the likely completion.
Nelco posted an earning per share (EPS) of Rs 0.42 for FY2001 (year ending June). It had incurred a loss of Rs 13.5 crore in the first half of the current year as compared to a loss of Rs 10.4 crore in the corresponding period last year. The company share currently rules at around Rs 26 on the Bombay Stock Exchange.
Nelco has technical collaboration and technical transfer agreements with the UK-based Serck Control for 16 RIT industrial microcomputers, and with Teleglobe, Canada, for data communication networks. It introduced telebanking in Indian nationalised banks and computerised more than 65 branches of 28 banks all over the country.
The company had also introduced the country’s first LAN interconnectivity products. It also diversified its activities in the electronic field, and manufactures televisions, computer and telecommunication systems, as well as industrial systems.
The sources say Nelco plans to set up a new unit to manufacture and sell telecommunication systems, which could, again, add substantially to the bottomline. Earlier, Nelco transferred its business systems division to a new subsidiary - Nelito Systems, a joint venture floated with Itochu Corporation of Japan.
Nelco was earlier selected by Chittararanjan Locomotive Works for the supply of power-control and auxiliary equipment of 6000 HP AC locomotives. This project was executed successfully in 2001 and was approved by RDSO. The company had earlier entered into an agreement with the US-based global electronic major General Electric to provide state-of-the-art drive-and-automation systems for the metal industries in the country.
In 2001, the company had executed SCADA contracts for Tata Power, Indian Railways, ONGC and Power Grid. Another major work was the construction of the Technopolis Knowledge Park at Andheri, Mumbai, which was completed with the assistance of Tata Housing Development Company. The sources say Nelco’s Rs 82.6-crore contract for the supply of unattended ground sensors to the Indian army, for deployment at strategic locations covering a supply of 324 sets, is in progress.
The company is expecting further orders for the next three years, and, as the sources say, “the next defence requirement is going to be several times bigger than the present order size.” The manufacturing of the product has been undertaken by the company’s Mahape facilities, based on the technology from Eagle-Telonics, US.