The Rs 500-crore ELGI Equipments Ltd (EEL), a Coimbatore-based engineering company engaged in the manufacture of industrial air compressors, has opened its subsidiaries in the Gulf, Elgi Gulf FZE, at the Sharjah Airport International Free Zone (SAIF) in the United Arab Emirates (UAE) and China, Elgi Equipments (Zhijiang) Ltd at Jiaxing.

The Gulf subsidiary would be a full-fledged sales and service organisation to offer prompt and speedy service deliveries with short lead times to the customers in the region, company sources said.

The Chinese company, a wholly foreign-owned enterprise, with a registerd capital of $0.9 million, is for the production and distribution of air compressors, its associated spare parts and accessory equipment and related technical consultation service, the company has informed BSE. The business term is for 30 years upto 2038.

V T Govindarajan, Director (Global Business) EEL said, ??the office-cum-warehouse facility of Elgi in the Gulf will enable us to expand our product offering and ensure immediate service in the fast growing Middle East market.?

EEL, one of the leading exporters of products to end users and OEMs in over 60 countries, has a significant market share in the Middle East region for electric and portable screw air compressors.

Elgi expects that its direct presence in the west Asia region and China would make it one of the top five compressor players there. ??We have been active for the last 10 years in the Gulf. The new facility will help us move closer to our customers. Elgi Gulf will initially serve the Gulf Corporation Council (GCC) markets and eventually plan to expand its presence in the Middle East region and North Africa,? he said.

According to Jairam Varadaraj, managing director of EEL, ??the construction industry in the UAE witnessed an unprecedented growth in the recent past and we have always strived to be in the forefront by meeting critical delivery requirements from the sector. ELGI has been a reliable supplier towards the development of the Arab world?s industrial base and economy by providing quality air compressors and services at competitive prices. West Asia contributes to more than 20% of EEL?s international sales. The opening of Elgi Gulf FZE will be a significant step in increasing the company?s international revenue in the coming years.??

Established in 1960 as service station equipment and reciprocating compressor making company, ELGI is now the market leader and Asia?s largest integrated manufacturer of air compressors and automobile service station equipment.

Its products are used in a wide range of applications in areas ranging from mining, defence, transport, pharmaceuticals, power, oil, railways, chemicals, textiles, printing to ship building, paper, electronics, telecommunications, medical, food and beverages and plastics.

In the financial year ended March 2008, ELGI posted a sales turnover of Rs 504 crore.