ELGi announces its plans to be the second largest air compressor manufacturer in the world
As it launched its brand new identity , logo and color scheme for its product range in June 2017, ELGi has set the bold target of becoming number 2 globally in the air compressor market by 2027.
ELGi Brand Story
K2 is the second highest peak in the world – so the mission has been codenamed CK2 or conquer K2 to symbolise ELGi’s determination and commitment to be in the compressed air business. To achieve these targets, the company has developed a coherent strategy and formulated aggressive growth plans.
ELGi Equipment Limited Managing Director, Dr. Jairam Varadaraj explained to the Hindu that over the past eight years, that ELGi has substantially outperformed industry averages. “We have posted compound annual growth rates of 14.3%,” he said. The industry average is between 2.5%-3%. However, to achieve their long term goals, ELGi need to lift their compound growth rate to 28%. Dr, Varadaraj is confident that the goal can be achieved. “We have the product, process people and technology to achieve this,” he said.
ELGi has targeted 25 companies/distributors in the two major world air compressor markets – the United States and the EU. Dr Varadaraj explains further that the approach is a simple funnel concept. “We will pick some and proceed.” The company is aiming for a hockey stick growth pattern with revenues of $1 billion in the next five years. Last financial year revenues were reported at $230 million.
ELGi will remain committed and aggressive in the R&D department, having utilised innovation to surpass global competitors in the compressed air business. The company is rightfully proud of its energy efficient, oil free products that are known for their reliability. Developing newer, better solutions and strengthening attention to indigenous technology has always been and will remain a focus for ELGi.
Dr Varadaraj elaborated further on this aspect stating that the ELGi brand has evolved over the past 50 years into a global leader in providing a complete range of air compressors. ELGi can proudly claim to have satisfied a host of customers across all industry verticals. “Air compressors are the ’life source of all industries’,” he said. ELGi has developed a best in class air compressor life cycle that is driven by low maintenance costs and low specific power consumption. With these advantages, Dr Varadaraj is able to state that “we strive to run all manufacturing facilities across the world with ELGi compressors.”
With bold, clear short and long term goals the next phase in the ELGi story looks set to be exciting and promising. The company’s new mantra “Always Better” is testimony to its ambitious goals.