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MACHINIST - Elgi Equipments joins J P Sauer & Sohn of Germany to form a Joint Venture

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Home arrow News arrow Alliances and Joint Ventures arrow Elgi Equipments joins J P Sauer & Sohn of Germany to form a Joint Venture

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Elgi Equipments joins J P Sauer & Sohn of Germany to form a Joint Venture
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Written by Ganesh   
Monday, 10 November 2008

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To manufacture special high pressure compressors for Indian Defence, Marine and Industrial applications

Coimbatore : The Rs.500-crore Elgi Equipments Limited (EEL) has entered into a joint venture with J P Sauer & Sohn, Germany with the manufacturing facility being set up at Coimbatore.

Commenting on the development, Dr. Jairam Varadaraj, Managing Director of Elgi Equipments Limited, said “the joint venture with J P Sauer & Sohn would bring in more advanced technology, a wider range of products, increased availability due to indigenization and better product support for Indian Navy, marine and special applications in domestic industry”. “J P Sauer & Sohn, GmbH, a 72 Million Euro company is a market leader for high-pressure air compressors for naval, marine and industrial applications. Sauer has a large presence in NATO Navies, shipyards and industries worldwide. During the process of developing a Joint Venture, both the firms realised the similarity in ethos and ethics giving rise to a natural synergy. The next logical step was to have Joint Venture wherein the strengths of both the firms could be used to maximise the potential”, Jairam further added.

Mr. V T Govindarajan, Director (Global Business), EEL, said “the business relationship between EEL & Sauer started in 2004 with Elgi promoting the Sauer range of high-pressure compressors along with our existing air cooled and water cooled technology compressors. The successful sales collaboration has taken the form of a joint venture with J P Sauer now. The JV would provide state-of–the-art compressors for emerging and refit shipbuilding projects by the Indian Navy, shipyards and special applications in industry”.

The strategic alliance has fetched breakthrough orders to supply high pressure non-magnetic compressors used in Mine Counter Measure Vessels, Shipbuilding yards, Steel industry and specialized applications like metal coating processes he elaborated.

“In the last financial year we have touched a sales turnover of INR 100 million through the partnership. Elgi possesses over 45 years of engineering expertise in the field of air compressors coupled with local production and assembly capabilities and backed up by a strong sales and after sales network. The alliance of Elgi with J P Sauer would consolidate the strengths of both the companies. With this pact, the direct advantage is having leading edge technology made available at the doorsteps of the Indian defense and industries”, Mr. Govindarajan said with a note of confidence.

This joint venture business registered as “Elgi Sauer Compressors Ltd” is scheduled to commence the operations very soon.
 
About Elgi Equipments Ltd (EEL):

ELGI was established in 1960 as service station equipment and reciprocating compressor manufacturing company. ELGI is today, the market leader and Asia's largest integrated manufacturer of air compressors and automobile service station equipment.  ELGI's products are used in a wide range of applications in areas ranging from mining, defence, transport, pharmaceuticals, power, oil, railways, chemicals, textiles, printing to ship building, paper, electronics, telecommunications, medical, food & beverages and plastics. In fact, starting from the paint on your wall to the car you drive, from the medicines you take to the leather bag you carry, ELGI's products have been used either in their production, maintenance or usage. In the financial year ended March 2008, ELGI has posted a sales turnover of Rs.504 crores.  For more information, please visit www.elgi.com
Last Updated ( Tuesday, 11 November 2008 )
 
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