Coimbatore-based Elgi Equipments is aiming to reach the second position in the global air compressor market by 2027. It is currently the seventh largest player in the global compressor market and the second largest in the domestic arena.
To achieve its goal, the company will focus on innovation, improving the efficiency of its compressors, removing pollutants by launching ‘oil-free’ compressors and ensuring an ‘error-free’ customer experience, its Managing Director Jairam Varadaraj told BusinessLine.
In line with this vision, Elgi has launched “State of the Future Art”, an initiative aimed at identifying and developing advanced technology and nurturing innovation.
The maiden edition of this signature initiative took place at Le Meridien last week. Speaking about the tech-focused drive, Varadaraj said: “It was more an inward-looking experience to see how we could use technology and innovation as a platform in the larger interest of the company.”
Building collaboration
About 200 employees of Elgi, students and industry representatives took part in the event. Internally, there were 50+ participants giving suggestions and mooting ideas on 16 of the (running) technology development projects.
“The platform will help engage and build collaboration between young engineering minds and industry experts,” Varadaraj reiterated. On Elgi’s technology breakthroughs, he said: “Our portfolio of 400+ products have found wide application across industries such as pharmaceuticals, food processing, textiles and special products. Launch of oil-free compressors in India has proved to be disruptive.”
While such compressors help remove pollutants (as compressors carry oil), it is pricey — almost thrice as expensive as the conventional model.
Elgi has introduced an intermediate range, which is 1.5 times more efficient than the conventional compressor, he said. The company spends close to 2.5 per cent of its revenue on R&D.
On Elgi’s overseas market, he said: “The traction for our products continues to be strong worldwide, especially in the European and US markets. But Elgi as a brand remains relatively unknown outside India. We are focussed on giving more, and that incidentally is driving our product pipeline.”
“We are looking at inorganic opportunities to grow in the markets abroad, with a focus on distribution companies,” he said, adding “we are fast reaching scale in the US, where a local assembly line will be justified.”