With continuous efforts by compressor manufacturers to lead the market on energy efficiency, superior performance, and reliability, it is critically important that the users of air compressors are aware of the advanced product options available in the market. The technological advances in control systems and the evolution of the Internet of Things (IoT) provide further motivation to upgrade the air compressors at the right time. Typically, Air Compressor Upgrades happen in every 3-4 years by manufacturers to improve energy efficiency, reliability, advanced features, etc., and it is worth the while to evaluate the need for upgrading your compressors.

Five critical factors to consider while upgrading your compressor

Energy Efficiency: Energy costs contribute to over 75% of the total life cycle cost (LCC) of a compressor, and is therefore the key factor in upgrading an air compressor. Once the energy cost of the existing compressor is determined (through air audit or a simpler total input power measurement), the benefits of a new compressor, in terms of energy costs, can be evaluated. In cases where the user’s duty cycle of the air compressor has increased significantly over time due to additional production activities, the savings will be more beneficial with shorter return on investment. Additionally, if the plant needs a higher flow for expansion, it is an opportunity to consolidate the need and evaluate for upgradation. The size of the machine (in kW) should also be considered, as the larger the size of the unit, the higher the savings potential.

Advanced features: Significant improvement in controller features, more intelligence through additional sensors, and evolution of IoT capability are further reasons to consider an upgrade. These features result in improved uptime, insights for improvement in energy efficiency, and inputs for optimized operational settings in addition to 24×7 remote monitoring from anywhere in the world. In plants where the failure of a compressed air system can result in heavy losses in productivity, these features are particularly critical. Improvement in consumables’ life and/or reliability is another factor. Recently, ELGi had doubled the life of oil filters used in its oil lubricated rotary screw compressors in several models. All these features not only make the compressors more efficient but also significantly more reliable and advanced.

Breakthrough products: Compressor users must also look out for breakthrough products that will result in superior performance. ELGi has recently launched a product, AB Series with a disruptive oil-free technology that will bring down the life cycle cost of an oil-free compressor significantly. Such breakthrough improvements provide an opportunity to improve overall plant efficiency and performance while meeting the users’ needs effectively. Growing production needs in a plant will also need a different compressor technology such as the transition to centrifugal compressors for larger volumes of compressed air as an example.

Unplanned maintenance costs: As compressors age and when they need frequent attention to keep them running reliably, the unplanned maintenance or repair costs will also increase. If the cost of repairs reaches a certain level (~40-50% of the compressor value), along with the lower energy efficiency of older products, it is an appropriate time to evaluate and upgrade your air compressor.

Return of Investment (RoI): Another important factor to be considered while upgrading the compressor is the RoI. With improv energy costs, the RoI can be evaluated to meet the customer’s target.

Executive Summary

When a leading India-based power equipment rental company had a demand for compressed air in the construction & mining industry, it reached out to ELGi. The company has procured hundreds of exceptional air compressors to date, which has helped grow its rental customer base across industries.

Overview of the Industry

Construction & Mining activities are the backbone of all industries and contribute significantly to a country’s economy. However, they are prone to fluctuations due to the frequent rise and dip in demand, geopolitics and recently the pandemic. That said, sustained efforts by countries and their economic boosters ensure a steady need for machinery. According to ICRA,1 the Mining and Construction Equipment industry was estimated to grow by 15-20% in 2021.

Though the projected growth applies primarily to manufacturers, indirect demand can accelerate the growth of auxiliary equipment providers too.

The Construction and Mining industry is labour intensive, equipment-driven, and requires dependable machinery that performs in demanding environments. Due to heavy capital investment, changing nature, demand for machinery, dynamic market conditions, and high need for proactive maintenance, corporations prefer hiring or leasing equipment over owning them.

About the Company

Our customer is the leading provider of power and cooling equipment in India, has 35+ years of experience and 500+ employees. The company provides high-end generators, transformers, air conditioners, chillers, compressors, load banks, fuel tanks, etc on rent. They offer turnkey solutions for short and long-term customer needs, catering to different sectors, including construction, mining, oil & gas, and food & beverage.

Based in 450 locations, the company has 350+ customers across India, catering to the needs of critical infrastructure development in the country. They focus on maintaining leadership in the energy equipment rental space. They achieve this by continuously upgrading their equipment and providing the latest, cutting-edge, ready-to-install equipment – while ensuring high reliability.

Our client’s equipment plays a critical role in the operations and overall productivity of their customers, placing a high demand for perfect rented or leased equipment. To achieve this aim, they procure only the best-in-market equipment for their customers. Providing quality after-sales service is equally critical to maintaining their market reputation while catering to the robust customer demand.

Customer Challenge

The company’s construction & mining customers use heavy machinery and frequently operate in remote locations in adverse conditions. The labour-intensive nature of the industry requires the best equipment and operations safety while ensuring high productivity.

Core processes like running ventilation systems, powering critical on-site pneumatic tools, lifting and handling operations, site cleaning and digging, and heavy-duty blasting require a steady flow of compressed air. Operations come to a standstill when these conditions are not met. Thus, it is imperative to provide 100% reliable air compressors as an operations and safety requirement.

Business Solution

The customer initially approached ELGi to procure two air compressors (ELGi PG600-230 and PG450-150) in 2018. As the demand for compressed air increased, the company procured hundreds of air compressors from ELGi over the next three years.

This exponential increase was also because ELGi provided immediate fulfilment and on-time service. ELGi air compressors helped the team meet demands at customer facilities while ensuring technical and industrial compliance at application sites.

After the initial satisfaction with the ELGi’s equipment and service quality, the company acquired the complete range of ELGi portable air compressors (both diesel and electric models) from 300 CFM to 1100 CFM free air delivery capacities. ELGi has also supplied two oil-free ELGi OF 275 screw air compressors for deployment at two customer sites in the food & beverages and oil & gas segments.

Business Benefits

The swift support provided by ELGi for new equipment procurement and on-site maintenance at end-consumer sites across India, satisfied our client’s expectations. Here are some benefits of choosing ELGi:

Increased Customer Demand: The authentic performance of ELGi air compressors at end-consumer sites has led to more orders for air compressor rentals.

Better Customer Satisfaction and Equipment reliability: With rented air compressors, the client ensures higher uptime and reduction in downtime for its customers.

Business Growth: Due to its successful venture into the air compressor rental business in the construction and mining sectors, the client is presently exploring opportunities in the oil and gas, pharmaceuticals, general engineering, and food and beverage industries. Our client also aims to offer oil-free air compressors to its customers.

Conclusion

“The rental industry is very promising and will boom once the pandemic is over. I’m confident that with ELGi’s technologically superior compressed air systems, along with our strong relationship with the ELGi team, we will be able to cater to the needs of our customers across various segments in the next few years. My mind is at peace as ELGi’s service team proactively takes care of our products at customer sites. I don’t worry about the service or downtime at all. By partnering with ELGi, I have taken the best decision at the right time,” said a representative of the client.

ELGi believes that ensuring a customer’s success determines ours and strives to provide superior equipment in the market. From procurement to after-sales service, ELGi takes pride in partnering with customers to ensure maximum productivity and reliability.