"ELGi Contemplates ₹500 Crore Long-Term Investment to Centralize Manufacturing Operations"

ELGi Equipments Ltd, a prominent air compressor manufacturer, is strategizing a significant long-term investment exceeding ₹500 crore to relocate its manufacturing operations from Coimbatore's urban confines to a sprawling campus outside the city. This shift aims to enhance operational efficiency for the company.

Presently, ELGi has delineated two distinct categories of capital expenditure-long-term and annual. Under the ambit of long-term capital expenditure, the company envisages allocating over ₹500 crore to erect new infrastructure and production lines across a vast 120-acre expanse situated beyond Coimbatore's confines.

Jairam Varadaraj, Managing Director of ELGi Equipments Ltd, elucidated, "We are confronting spatial constraints within our current urban facility. Consequently, we are poised to gradually transition our urban manufacturing operations to the expansive new campus over the forthcoming five to six years, a move geared towards bolstering our operational efficacy. Notably, a segment of our urban operations was relocated to the new campus nearly a decade ago."

Moreover, the company anticipates an annual capital expenditure of approximately ₹50-60 crore, primarily channeled towards investments in plant and machinery to sustain its operational needs.

HBL