ELGi Eyes Global Top Three Position, Bets ₹500 Crore On Expansion
Anvar Jay Varadaraj, Director and Chief Operating Officer at ELGi Equipments , discusses the company’s ambition to become one of the world’s top three compressor brands by 2035. In talks with The Free Press Journal, he outlines ELGi’s Rs 500-crore manufacturing expansion, overseas growth, energy-efficient technologies, sectoral opportunities and strategy to strengthen its position across India…
ELGi, a leading compressor brand, aims to become one of the top three globally by 2035. The company recently announced a ₹500 crore investment in manufacturing expansion and overseas growth. ELGi already holds a significant market share in Maharashtra, with an estimated 20% of the electric-powered screw compressor market. While the exact share varies between Mumbai and Pune, the company sees potential for further expansion.
The company's ambition is to become India's leading compressor brand with a market share exceeding 30%. Compressed air is a crucial power source for various industries, including power, cement, textiles, and pharmaceuticals. ELGi's products cater to specific sector needs, such as oil-free air for pharmaceuticals and precision machining components.
In the past decade, ELGi has expanded to Europe, North America, the Middle East, Australia, Southeast Asia, and Africa, with over 50% of its revenue coming from overseas markets. North America is the company's largest international market, and its growth strategy involves organic expansion, acquisitions, and differentiated strategies.
To achieve its growth targets, ELGi plans to invest nearly ₹500 crore in a new 100-acre campus outside Coimbatore, which is expected to become its primary production hub within the next three to four years. The FY26 revenue was approximately ₹3,800 crore, with an EBITDA margin of near 15%. The company's electric vehicle and new-economy sector opportunities are significant, driven by compressed air requirements in these industries.
ELGi's compressors are designed for a typical 10-year lifespan, although well-maintained machines can operate for 15 or 20 years. The company's Demand Match technology offers energy savings of 7% to 16%, helping customers maintain energy efficiency in textile operations. ELGi's research and development budget is 30% to 40% above the industry standard, with notable innovations like the water-injected AB series compressor for oil-free air applications in the food and pharmaceutical sectors.
Vertical integration, such as manufacturing air ends and motors, contributes to better efficiency and another 5% to 7% improvement in overall performance.
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