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Elgi to make motors; invests in new plant

18 September 2018

Elgi to make motors; invests in new plant , goes into backward integration

Elgi Equipments will commission a production facility for motors, probably in the first quarter of next financial year.


Managing director Jairam Varadaraj told that the machinery had been ordered and the location finalised. ELGi would invest ₹18 crore in the facility. “Every motor manufacturer has a standard motor. If we are able to make one specifically for compressors, we can make it more efficient,” he said, explaining the reason behind getting into motor manufacturing. Motors are a key input in compressors, he pointed out.


ELGi commissioned a foundry and an air centre plant on its campus at Kinathukadavu, near here, in 2014, at a cost of ₹250 crore. “We are hoping that in 2-3 years, this campus would become an integrated unit. We will create facilities on the campus to shift all our manufacturing to it.”


Production at the foundry is currently one-third of the capacity and the castings are for captive use. “As growth comes, capacity utilisation will go up.” The motors to be made by ELGi would also be for captive use. 

Source: The Hindu