ELGi Vacuums Up: Enters New Market with Italian Tech Pact

ELGi Equipments, a renowned manufacturer of air compressors, has embarked on a new venture by entering into a technical licensing agreement with Italy-based DVP Vacuum Technology SpA. This strategic collaboration aims to assemble, manufacture, and distribute vacuum products, marking the inception of a distinct vertical within the company's portfolio.

Under this partnership, ELGi will dedicate significant engineering resources to assimilate DVP's advanced technology and tailor it to suit the requirements of the Indian market. Production of vacuum products will take place at ELGi's facility in Coimbatore. Over the next two years, substantial investments are planned for establishing assembly lines and setting up a robust sales and service infrastructure.

The decision to venture into the vacuum product segment aligns with ELGi's long-term growth strategy, which identifies a substantial global market opportunity worth USD 20-21 billion. This opportunity encompasses various products including compressors, vacuum products, aftermarket accessories, among others.

ELGi intends to allocate resources towards incubating the vacuum products business in India before expanding its footprint globally. The company recognizes synergies across manufacturing and technology between compressors and vacuum products. Notably, the global vacuum pump market is estimated to reach USD six to seven billion by 2024.

With a successful track record spanning over a decade, ELGi has established a strong presence in the compressor business across key global markets. The company's overseas footprint includes subsidiaries in Europe, the US, Brazil, the UAE, Australia, and Indonesia, reflecting its commitment to international expansion and innovation.

News by Rahul Yelligetti