ELGi aspires to become world No. 2 in Air Compressor market
Coimbatore-based ELGi Equipments, the US $230 million compressor major and the 8th largest player in the $15 billion global air compressor market, has announced its ambitious growth plans to become world No.2 in the global market by 2027. The company, also unveiled their new brand identity with a new logo and colour scheme for its entire product range incorporating Red and Black. Red stands for performance, passion and energy. It reflects the drive to constantly evolve and keep getting better. Black is clear, bold and helps establish a distinct brand world. From the functional standpoint, these colours add on to better visibility, consistency in execution and are unique in the industry.
The air compressor market is growing steadily year on year. The market size is anticipated to be USD 20 billion in 2023, with 3.6% CAGR from 2016 to 2023.
The company has opted to take the innovation route to be World Number 2 in the global air compressor market by making the products energy efficient, oil free and with an increased uptime reliability. ELGi has always focused on strengthening its attention on indigenous technology, research and development to innovate newer technologies in the air compressor industry. The company is gearing to launch IoT-enabled compressors as a standard feature in its products.
Speaking at the conference, Dr. Jairam Varadaraj, Managing Director, ELGi Equipments said, “ELGi as a brand that is over 50+ years, has constantly evolved as a global leader in providing complete range of compressed air solutions creating satisfied customers across all industrial verticals. Air-Compressors are the ‘life source of all industries’ and the need will never diminish. With our best-in-class lifecycle cost driven by low specific power consumption and maintenance cost, we strive to run all manufacturing facilities across the world with ELGi compressors.”
“From the current level to reach our aspirational targets, we need to grow at a CAGR of about 28 per cent. This will not come organically. A big part of that growth, say about 70 per cent, will come through acquired businesses,” he added. Since Europe and US are expected to be major markets, its acquisitions will also happen in those two geographies. It has identified nearly 25 companies mostly for scale and customer access, in those two regions.
ELGi’s growth plans entail an investment of Rs.5,000 crore over the next 10 years. It plans to pump in Rs.1,000-1,200 crore in the next three years mostly in building back-end infrastructure in order to achieve Rs.1-billion revenues in the next five years.
About ELGi
Elgi Equipments Limited is a leading air compressor manufacturer with a broad line of innovative and technologically superior compressed air systems. ELGi has earned worldwide distinction for designing sustainable solutions that help companies achieve their productivity goals and keep the cost of ownership low. ELGi offers a complete range of compressed air solutions from oil-lubricated and oil-free rotary screw compressors, oil-lubricated and oil-free reciprocating compressors and centrifugal compressors, to dryers, filters and downstream accessories. The company’s portfolio of over 400 products has found wide applications across industries.
– P.K. Balasubbramaniian
