Electrotherm India Limited is a medium-sized Indian engineering company with a leadership position in the production of induction furnaces, induction heating and hardening equipment and other specialized equipment for the engineering and metallurgical industry. Besides its core products of induction furnaces and iron and steel products, the company also produces electric scooters.
With IFC’s help, the company is expanding in Gujarat province, an area hit hard by a powerful 2001 earthquake. The company’s growth program involves expanding its electric scooter division by increasing capacity and the number of distributors, thus increasing consumer access to inexpensive, non-polluting personal transportation.
Electrotherm is also increasing the production capacity of its engineering steel items and ductile iron pipes, which contributes to the rebuilding of severely damaged water and sewer infrastructure. The company is also setting up a waste heat power plant that uses the waste gases of the sponge iron kilns and other melting equipment to generate electricity for the company’s production facility.
IFC role and development impact:
- $25 million in long-term financing: longer tenor than otherwise available
- Guidance on improved corporate governance, social responsibility and environmental sustainability, plus assistance on management plan for growth
- Increase in supply of affordable non-polluting transportation.
- 1,100 direct jobs in a poor region of country, plus indirect jobs for local components suppliers and across the country as the network of motorcycle dealerships grows
- More rapid rebuilding of critical infrastructure damaged in 2001 earthquake
