World : Elgi eyes global top slot in energy efficiency


Elgi Equipments Ltd is looking to make its air compressors the best in energy efficiency in the next couple of years to tackle global competition.

The Coimbatore-based company’s air compressors have been rated among the top three for energy efficiency by the Compressed Air and Gas Institute (CAGI), a US-based standards organisation.

In air compressors, energy accounts for 75-80 per cent of the life cycle cost. Jairam Varadaraj, Managing Director, Elgi Equipments, told BusinessLine at the company’s headquarters in Coimbatore that Elgi compressors have been ranked among the top three across various categories, and its aim is No 1 in all through. “It’s not about technology. That has already been developed. It is about developing design and parts, validation and rollout. One of by one, products will be launched with that goal and in the next year-and-a-half, we hope to achieve our goal,” he said.

The ‘most energy-efficient’ tag will help Elgi compete effectively in the global markets, he added.

As part of its long-term plan, Elgi has identified certain product groups as well as country clusters for stronger focus. Its top priority markets include India, the US and Europe, while Indonesia, Thailand and Australia will be the second priority regions.

In products, the company will focus on lubricator screw compressors and oil-free compressors. These two categories make up about 55 per cent of the global opportunity.

Global presence

Varadaraj said the company is making strong inroads in the US market and Elgi will aggressively focus on its sales and distribution in the coming months. “When we went, US distributors did not favour the ‘Made in India’ label. Now, distributors are saying they want to carry Elgi products. It is a good validation as we offer the necessary ingredients,” he said. While quality was a major driver for the acceptance, the after-sales support facility is also a major factor in this success story, he added.

The $230-million Elgi secures about half its revenues from international markets.


Source :

Smart Grid Bulletin July 2019

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