Elgi Equipments to have 26 % stake in JV

New Delhi: Air compressor manufacturer Elgi Equipments announced the German equipment maker, J P Sauer & Sohn as a majority partner with a 74 per cent stake in a joint venture between the two companies.

The venture, which is formed to produce advance compressors, would have Elgi Equipment holding the remaining 26 per cent stake.

The company, Elgi Sauer Compressors, will begin manufacturing air compressors with applications for navy and industries in the current month at its plant in Coimbatore, Tamil Nadu. The facility will have a capacity to produce 400 units annually.

“Till now we have been making equipment for industrial applications. The joint venture would enable us to enter in to a specialised category for navy and marine applications. We expect a turnover of Rs 10 crore in the first year of operation,” said Mr Jairam Varadraj, Managing Director, Elgi.

The German company claims to have a majority share globally in high-pressure air compressors for naval, marine and industrial applications.