ELGi’s View on Changing Economy and how it Will Impact the Manufacturing Ecosystem

Dr Jairam Varadaraj, Managing Director, ELGi Equipments Ltd

Coimbatore, India – ElGi Equipments Ltd expanded its business when the pandemic challenged organizations around the world to better serve their customers, communities, and employees. The company has an ambitious goal of becoming one of the top three air compressor manufacturers in the world. It recognized the need to adopt a management philosophy that emphasizes vertical excellence in each operating function as well as customer-centric horizontal excellence across the business, operations, and support functions in order to achieve this.

ELGi, with a net worth of INR 540 crore, posted INR 57 crore standalone profit in Q2 for FY 2021-22 and a surge in their business performance, thanks to solid systems and processes built into every touchpoint across the organization. The company’s automotive business saw a 45 percent increase in sales, bringing it back to pre-COVID levels. The company benefited from strategic investments in the global market in FY 2021-22, as the majority of its growth came from North America, Europe, and Australia. The company supports its customers’ sustainability goals by providing products and services that are safe and contribute to sustainability throughout their life cycle.

Stating that the world has been experiencing chaotic economic manifestations and increased consumption of all types of physical goods for nearly two years, to the point where the world has experienced shortages, resulting in an unprecedented increase in the prices of almost all products and services, Dr Jairam Varadaraj, Managing Director, ELGi Equipments Ltd, added, “With the world coming back to normalcy, people are beginning to spend on the services they had previously stopped. Besides, people have exhausted the additional consumption of physical goods. Both of these and the impact of inflation of personal income will cause the manufacturing economy to correct itself. With this, there would be a trickle-down effect of capacity build-up also slowing down. It would be wise to brace for this leveling of activity and focus inward on productivity and cost optimization.”

Image Source: ElGi Equipments Ltd