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Elgi, German co in joint venture


Elgi Equipments Limited (EEL), Asia’s largest integrated manufacturer of air compressors, has formed a joint venture with J P Sauer & Sohn of Germany.

The new company, Elgi Sauer Compressors Ltd, would provide advanced compressors, indigenised for customers like the Indian navy, marine and special segments of the industry.

The joint venture will also provide product and logistic support. While JP Sauer & Sohn will hold a majority stake of 74% in the new venture, EEL will retain the remaining 26%. Satish Kini will be general manager for the new company which has its production unit at Coimbatore in Tamil Nadu.

Set up with an investment of Rs28 million, it has an installed production capacity of 400 compressors per annum. The company expects to post a turnover of Rs100 million in its first year of operation.

The business relationship between EEL & JP Sauer & Sohn started in 2004 with Elgi promoting the Sauer range of high-pressure compressors in India. That sales collaboration has taken the form of a joint venture with JP Sauer now.

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Sept 2020
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