Air compressor maker ELGi Equipments is looking to double its turnover in the next three years, betting big on exports and localising products in markets like the US and Europe.
Air compressor maker ELGi Equipments is looking to double its turnover in the next three years, betting big on exports and localising products in markets like the US and Europe. The company, which had a turnover of about Rs 1,400 crore in the 2016-17 fiscal, plans to manufacture technologically superior compressed air systems to compete with its German and American rivals. “Right now 50 per cent of our turnover comes from India and remaining half from the exports, which we are looking to tweak a little and have about 80 per cent from the exports,” ELGi Equipments Head–Marketing and Communications Anvar Jay Varadaraj told PTI. Varadaraj said the air compressor market size in India is about USD 400 billion and the company has 25 per cent market share. “Even if our exports increase and home consumption comes down, we expect our share to be the same as the size of the market would also go up in the years to come,” he added.
The company sells its products in 70 countries and considers the US and Europe as its biggest international markets. Varadaraj said to achieve the turnover target, the company would also look to acquire small firms which can give further access to these markets. The Coimbatore-based listed company also makes air accessories and parts for other industries, including auto. The compressor business accounted for 86 per cent of the total sales of the company. It accounts for 93 profits of the profits and 84 per cent of the capital employed.