ELGi Equipments eyeing 14-15% growth in FY 2018-19: MD

CHENNAI: Air compressor manufacturing major ELGi Equipments is eyeing a 15 per cent growth in consolidated revenues in the current financial year, a top official has said.
The Coimbatore-based company, as part of strengthening its presence in Australia recently acquired 100 per cent shareholding of Sydney-based F R Pulford and Son Pty Ltd for 11.04 million (Australian Dollars) about Rs 56 crore, in an 'all cash deal'.

"On consolidated operation, the expectation is that there will be 14-15 per cent growth (in current financial year) over the previous year (2017-18)", company Managing Director, Jairam Varadaraj told PTI.

For the financial year ending March 31, 2018 consolidated net profits was Rs 95.28 crore as against Rs 74.00 crore registered during the year ago period.

Commenting on the Australian-acquisition,he said "Pulford has been our distributor (for Elgi Equipments) for the last one year and we have discovered each other's strengths to enhance our synergies".

With the acquisition, the company was aiming at doubling its market share in Australia. "..we believe we can double the market share over the next few years. So that is the opportunity we are looking at (on the acquisition)", he said.

He said the acquisition of Pulford was expected to contribute about Rs 60 crore on topline revenue for Elgi Equipments.

Elgi Equipments is currently on a business mission of becoming a leading player in the global air compressor business by 2027.

The strategic acquisition was a significant step the company has made in Australia to expand its footprint in the region, he said.

On whether the company would expand operations in New Zealand, he said "this acquisition will also add value to the distribution business directly it has in New Zealand."

"Our distributor there (in New Zealand) is quite strong", he said.