News & Updates » ELGi Equipments looks to double turnover in 3 years to compete with American and German rivals
ELGi Equipments looks to double turnover in 3 years to compete with American and German rivals
The Coimbatore-based listed company air compressor manufacturer ELGi Equipments is looking to double its turnover in the next 3 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.
"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 compressor business accounted for 86 per cent of the total sales of the company. It accounts for 93 per cent of the profits and 84 per cent of the capital employed.
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