Elgi Equipments ready to tap opportunities in emerging sectors

16 Feb 2022

Elgi Equipments is confident of meeting the air compressors requirements of emerging sectors such as semi conductors, electronics, and solar energy in the country.

Jairam Varadaraj, Managing Director of Elgi Equipments, told The Hindu on Tuesday, “We are well poised to exploit (opportunities for) compressed air supply in all new sectors...we are looking at those (sectors) as opportunities. But, we will remain focused on the compressor business.”

On the demand in the Indian market, he said there were enquiries and orders coming from all verticals. There were so many factors that were driving demand in the Indian market. For Elgi, Indian and global business contribution was 50 : 50 and it remained so. In the recent months, raw material prices had not seen the volatility witnessed earlier though they remained high.

Regarding acquisitions, he said, “We are always on the lookout. But, it has to be part of the strategic fit. It is only to acquire new customers.”

The company, which recently announced its results for third quarter of 2021-22, hoped to end the year registering 25 % higher revenue compared to last year. The fourth quarter revenue was expected to be almost similar to the third quarter. Elgi announced last year that it was targeting $400 million by 2025-2026. “We will do far more than that,” he said.

A release from the company said its outlook for the fourth quarter of 2021-22 was moderate growth over the corresponding period of the last financial year.