In a strategic move to diversify its industrial portfolio, Chennai-based ELGi Equipments Ltd, a major player in air compressors, has officially entered the vacuum technology sector. The company has commissioned a brand new vacuum pump assembly line at its headquarters in Coimbatore.
A Strategic Alliance with European Expertise
This expansion is not a solo venture. It is the result of a long-term technology licensing agreement with Italy's D.V.P. Vacuum Technology S.p.A., a family-owned firm with deep roots in the vacuum business since 1973. The pact, first announced in February 2024, grants ELGi the rights to manufacture, assemble, test, and market DVP's vacuum products across India.
ELGi views vacuum solutions as a natural extension of its core compressed air business. This step is designed to create a more comprehensive range of industrial air and vacuum offerings for its customers.
Building Globally Competitive Solutions from India
Jairam Varadaraj, Managing Director of ELGi Equipments, highlighted the significance of this development. He stated that this move marks a crucial step in constructing globally competitive industrial solutions from an Indian base. By merging proven European technology with ELGi's own manufacturing rigor and extensive service network, the company aims to solidify its position for serving both domestic and international markets in the long run.
The company plans to offer these vacuum pumps with a competitive two-year warranty, signaling confidence in product quality and reliability.
Targeting a Multi-Billion Dollar Global Opportunity
This foray into vacuum technology is a key component of ELGi's long-term growth strategy. The company has identified a substantial global business opportunity worth $20 to $21 billion. It plans to address this vast market through a multi-product approach encompassing compressors, vacuum systems, and aftermarket accessories.
Anvar Jay Varadaraj, Chief Operating Officer, pointed out the steady growth drivers in the global vacuum pump market. Sectors like manufacturing, packaging, pharmaceuticals, electronics, and process industries are fueling demand. The new assembly line, therefore, strengthens ELGi's overall standing in this expanding marketplace.
The company confirmed that the vacuum business will operate as a distinct vertical within its organization. Industry estimates peg the size of the global vacuum pump market at $6 to $7 billion in 2024, and it continues to show positive growth trends.
