The Past

Established in 1960 in Coimbatore, India, ELGi started off as an air compressor and a garage equipment manufacturing company. Over the years, with strategic collaborations and a relentless focus on research and development, ELGi has made remarkable progress from an importer of technology to a self-reliant manufacturer of compressed air systems.

Throwing some more light on ELGi’s growth story, Dr. Varadaraj stated: “We started like everyone else. Indian companies went to Europe or America and got licenses from top companies. When you get the license, you invariably get post-generational technology. No one will give you the latest one. They will give you the ‘know-how’, meaning they will give you a set of drawings and say this is how you assemble the machine. However they will never tell you ‘why’. As a result, you become a constant slave to imported technology. When we started out in 1994, India was just opening up. We knew that if we go the licensing way, we will reach nowhere. We therefore had to build our own technology. We chose the harder path. From 1994 onwards we have been investing in R&D and latest technology. We learnt the ‘know-why’. We have also learnt the shifts that are taking place. Additionally, we have also learnt the direction of the shift. If you understand the shift and only respond to it, you are a follower. It is only when you learn to preempt the direction of the shift that you become a leader. You can say that we are now at the cusp of being able to lead with the next generation of air compressors.”

The Present

ELGi’s ‘know-why’ attitude has led to the development of some of the most technologically evolved air compressors of our time. Global leadership seems like the logical next step. But before that, ELGi must jump through many proverbial hoops. Debunking myths and preconceived notions about ELGi remains one of the most formidable challenges for the company.

“We have enough evidence to prove that we are at par or better than the best, but that doesn’t mean we are close to what we intend to achieve. Remember the odds that were stacked up against us. For one, ELGi was a relatively unknown brand in international markets. Then there’s always this stigma of a “Made in India” label, which I feel is more of a perception than anything else. It is a perception though, which is gradually changing. So, with all these limitations, in order to be competitive in these markets, being marginally better is not good enough. So that’s really what we are driving at. Customers in these markets can be unforgiving. And if it is an Indian brand, then the forgiveness quotient is even less,” observed Dr. Varadaraj.

Specifically in the Indian market, there is a general view prevailing that the company’s thrust on the textile industry has not been aggressive enough. Competitors have been relatively more direct and assertive about their capabilities.