ELGi focuses on achieving a high market share in India, recognises long-term growth potential in Europe

May 2, 2023 1:49 pm

During the Hannover Messe 2023, Jairam Varadaraj, MD, and Chris Ringlstetter, President-ELGi Europe, emphasised that all their machines are either newly launched or less than six months old, primarily highlighting efficiency, following their dedication to providing quality and durability. They aimed to draw in more channel partners, educate them about products, introduce new offerings, and showcase the latest innovations.
Please talk about your presence at Hannover Messe 2023?
Jairam Varadaraj: Our objective at Hannover Messe was to establish ourselves as a preferred vendor for our channel partners and customers while expanding our network of channel partners. We aimed to educate them about our products, introduce new offerings, and showcase our latest innovations. These were the key objectives we had in mind for the event. Our presence at Hannover Messe goes beyond just showcasing our products but also emphasises the importance of innovation and consistency. Unlike showing the same products from previous years, we strive to bring brand-new machines to the event, focusing on efficiency.
What is your perception of the air compressor market in India, specifically for the manufacturing sector?
Jairam Varadaraj: We anticipate significant growth in the manufacturing sector, which will drive demand for air compressors. Given their utility in the industry, we expect a strong increase in demand for compressors.
Chris Ringlstetter: One of the advantages of selling our compressors is their wide reach across all sectors, without being limited to any specific industrial sector. This versatility eliminates the risk of
dependence on any single sector.
What factors do you consider critical while upgrading compressors?
Jairam Varadaraj: When assessing a compressor’s lifecycle costs from the customer’s perspective, the primary factor to consider is energy consumption. The energy efficiency of the compressor is of utmost importance to customers. The second factor to be mindful of is the mechanical reliability of the product, as issues may arise over time. It is crucial to have prompt and reliable service support nearby to ensure the factory does not experience downtime due to compressed air shortages. Additionally, the quality of the machine provided must be of the highest standard to meet customer expectations.
Can you elaborate on ELGi’s compressor technology and how it comes with high efficiency, low maintenance cost, and is environmentally friendly?
Jairam Varadaraj: We emphasise energy efficiency in our compressors and are proud to have been ranked highly by the US Compressed Air and Gas Institute. In nearly 40 percent of the models we produce, we hold the top position in terms of efficiency, and in around 50 percent of the models, we are among the top three. Our goal is to become the worldwide leader in efficiency for popular compressor models, and we are investing continuously to achieve this within the next year or two. Quality is a core value for our organisation and is not negotiable. We have also prioritised environmental sustainability by finding ways to eliminate oil in our compressors, which will contribute to a cleaner environment in our country.
How do you evaluate the Indian market compared to the European market regarding compressor growth and opportunity?
Jairam Varadaraj: Our focus in India is on achieving a high market share by exploring growth opportunities. Our market share in Europe is relatively low compared to India. However, we recognise that the long-term growth potential in terms of the number of machines will be much larger in Europe, and the market size in terms of value is also bigger in Europe than in India.
Chris Ringlstetter: We began our expansion into Europe four years ago with significant investments, starting from scratch. This is why our current market penetration in Europe is relatively low.
What innovations have taken place in your business?
Jairam Varadaraj: Our focus on innovation is centred around enhancing energy efficiency in our compressors. We have also invested in developing oil-free innovations, particularly in connected compressors. Apart from these areas, we have also made investments in other aspects.