About Elgi Equipments Limited

30 Mar 2024

ELGi's Strategic Business Plan goals and target

ELGi is listed with the BSE and the NSE with a direct presence in 26 countries and doing business in 120+ countries worldwide. In FY23, ELGi Equipments reported a consolidated revenue of ?3,041 crore and a net profit of ?371 crore. To maintain its leadership position in key focus markets, ELGi has developed a Strategic Business Plan (SBP) and has set broad targets to be achieved by 2025-26: Revenue> $ 400Mn, EBITDA>16%, ROCE> 30%. 

ELGi's strategy to achieve SBP goals

Currently, ELGi is ranked 6 in the world, and to accomplish its aspirational target of being among the top 3, the company's market-facing dimensions of the strategy include, in addition to organic growth, business acquisitions across the world with a specific focus on India, Europe, USA, and Australia. On the value proposition dimensions of strategy, ELGi focuses on innovations centred on energy efficiency and quality to be the best in the world.

ELGi's Customers 

ELGi supports an array of industries by constantly delivering a wide range of sustainable and efficient compressed air solutions. Industries like general engineering, construction, mining, automotive, and textiles have time and again chosen ELGi compressors for their low power consumption, increased uptime, and productivity. We are mindful of catering to our customer's critical requirements of clean, moisture-free, and oil-free air, free from all contaminants. This makes ELGi the preferred choice for polymer, brewing, food, beverage, and pharmaceutical industries. Over the years, ELGi has built a strong brand through strategic partnerships, product innovation through in-house research and engineering, and a customer-centric approach. 

ELGi's Manufacturing Strength

Manufacturing at ELGi is a persistent and creative undertaking to achieve best-in-class performance, reliability, and sustainability standards. Its vertically integrated processes have greatly enhanced manufacturing capabilities, helped the company maintain high-quality standards, and provided scope for design innovation and flexibility. To power a portfolio of over 400 products, ELGi has state-of-the-art manufacturing facilities in India, Italy and the USA.

Selective Backward Integration to enhance value to customers

Today, ELGi is possibly one of the only companies across the globe that makes its proprietary air ends, pressure vessels, castings, and motors and conducts complete machining and compressor assembly. This was made possible by building ELGi's technological capability, not only the "know-how" of technology but also the "know-why" of technology pertaining to the core elements and critical parts of a compressor. The company has adopted Total Quality Management (TQM) as a business excellence model and achieved the Deming award on TQM in 2019, becoming the first globally established industrial air compressor manufacturer outside of Japan to win the prestigious award in over 60 years.

People 

Today, ELGi is one of the global leaders in compressed air space, with an extensive range of innovative and technologically advanced compressed air solutions. ELGi does business in over 120 + countries while directly present in 26 countries with its manufacturing presence in Europe, North America, and India. The ELGi Rewards and Recognition program is designed to promote its performance-led, innovation-focused culture. The company has instituted a rewards system to reinforce its goals around quality, productivity, continuous improvement, customer service, workplace safety, and good work practices. Along with career growth, ELGi provides opportunities and platforms to nurture, fine-tune and showcase your talents and non-work skills through our category-specific programs that cover theatrics, sports, and social community projects.

ELGi aims to close the pay gap between its blue-collar workers in India and those in other countries and has adopted a scientific way of calculating compensation. The company is doing it in stages and moving towards that. The entire compensation system for blue-collar employees is driven by co-created baskets that reflect the standards of living. At ELGi, there has been almost zero attrition among its blue-collar employees.

ELGi identifies the need to contribute positively to the upliftment of the community and engages with them through its various initiatives. 

Community Engagement

ELGi's social initiatives are geared towards developing strong engineering talent in the community around the company. The ELGi vocational training program identifies talented girls and boys from nearby villages to undergo a rigorous three-year training program to induct them into ELGi manufacturing systems. The ELGi School in Coimbatore admits 1,400 students from underprivileged backgrounds and works towards spawning innovators by fostering strong math and science skills in these students.

ELGi's ESG Strategy 

The emphasis on purpose led ELGi to embrace the ESG approach, an opportunity for ELGi to make a difference, protect the planet and ensure the security of future generations. To accomplish this, ELGi is committed to the following: 

• Moving towards neutrality across scope 1 and 2 emissions, year on year - reducing carbon intensity to 28% by 2026-2027
• Achieving long-term water sustainability through improved water recyclability – reducing the use of fresh water to 50% by 2026-2027
• A transition towards circularity by regenerating waste into useful products - sending zero waste to landfill by 2026-2027

ELGi's environment-friendly, oil-free, and electric-powered air compressors are creating new standards in their segments as they deliver industry-leading performance backed by reduced energy consumption and maintenance costs. ELGi also supports its customers' efforts to achieve their carbon emission reduction goals. 

To accomplish this, ELGi is committed to the following: 

• Improving the customer experience by manufacturing products that deliver best-in-class efficiency – making existing products 5% more energy efficient by 2030.
• Reduce climate impact through lower GWP refrigerant options - attain 80% of product range availability of HFO-based dryers by 2030