Eimco has a near monopoly in the UG coal mining intermediate technology equipment industry


  • About the Company
  • Eimco was incorporated in 1974 as a joint venture between the Elecon group and Sandvik AB (rated 'A-/Stable /A-2' by S&P Global Ratings), the world’s leading manufacturer of rock-drilling tools and mining equipment. Eimco produces a wide range of mining machinery, such as air-powered rocker shovels, electro-hydraulic side-dump loaders, and electro-hydraulic and air-powered load-haul dumpers that are used as loading machines in coal mines. Facilities are in Vallabh Vidyanagar, Gujarat.
  • While Eimco has looked to diversify its revenue, ~80% continues to accrue from the UG coal mining segment wherein the industry is undergoing a positive change.

  • Expectation of a sustained improvement in business risk profile
  • Supported by expected increase in orders from Coal India Ltd following its efforts to enhance output from the underground (UG) mines and focus on reducing import of coal mining machineries. 
  • After the downturn in output from the UG mining segment, benefited by technological progress undertaken over the years, CIL aims to increase production of UG coal from ~35 million tonne (MT) in fiscal 2023 to 100 MT in fiscal 2028 and 120 MT in fiscal 2030. \ 
  • The benefit to Eimco’s operations is evident from the growth in its order book to Rs 152 crore (highest ever increase; executable over the next two fiscals) as on December 31, 2023, from ~Rs 50 crore in March 2023.
  • The future of mining in India lies in innovative, more environment friendly methods and meeting the nation’s self-reliance and sustainable growth. 
  • The demand profile of the metals and strategic minerals are fast changing due to rapid changes in energy, transport and communication sectors. 
  • This will definitely create new mines and need expansion of the existing ones.
  • Established market position in the UG coal mining equipment segment: 
  • Eimco has a near monopoly in the UG coal mining intermediate technology equipment industry in India, backed by an extensive after-sales service network. 
  • Longstanding relations with CIL and The Singareni Collieries Company Ltd (SCCL) also help sustain leadership position. 
  • Furthermore, as CIL aims to reduce its import dependence, Eimco is expected to further gain as it is an indigenous developer of mining machinery. 
  • With awarding mines to private players, the company has been able to reduce its client concentration from CIL and SCCL. 
  • Strong in-house research and development team enables continuous improvement in the effectiveness of equipment; while catering to diverse applications further aids established market position. 
  • A mid-to-high double-digit trend in growth could continue as the UG coal mining industry shifts towards newer, technologically advanced products such as continuous miner packages 

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