January 2020 \ Business & Investment \ Business and governance
India’s Elgi acquires US compressor distributor for $6 million

Continuing its strategy of gaining overseas market .. .

According to him, acquiring the distribution network provides the company stronger foothold in the market. Earlier, Elgi Equipments followed the strategy of acquiring a competitor. According to him, the company had followed the ‘Elgi Inside’ policy, making the compressor with its components but selling under the acquired company’s brand but that did not click in the overseas markets.

The Coimbatore headquartered compressor major is planning growth in Europe where it is setting up its own office and related network. Varadaraj said the six strategic overseas markets for Elgi Equipments are India, Europe, US, Australia, Indonesia and Thailand. He said the consolidated revenue of Elgi Equipments is about Rs 2,000 crore out of which nearly 50 per cent is from overseas.

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