Elgi Equipments will start implementing measures in a few months for a sharper focus in the Indian market, said Jairam Varadaraj, its Managing Director.
Almost 40% of Elgi’s business comes from the India and the remaining from the rest of the world. “The home market is the base and it has to be periodically sharpened and nurtured. This is an opportunity to rejuvenate (operations) in the Indian market,” Mr. Varadaraj said.
Australia and southeast Asia performed better than the previous year in 2022-2023 and the European Union and the US markets had done well too. India had a muted growth, the MD noted. Sales in India during January-March of 2022-2023 saw about 9% growth compared to the same period 2021-2022, if the orders for oxygen plants that were significant during the fourth quarter of 2021-2022 were excluded.
For the current year, all the sectors that have Production Linked Incentive programmes are seeing investments in India and Elgi has got orders from these. “We have kicked off an initiative, which will be implemented in a couple of months, to have sharper focus in the Indian market,” he said.
Elgi’s consolidated PAT for the financial year that ended on March 31, 2023 was ₹370.81 crores compared to ₹ 178.43 crore the previous year. Consolidated sales for the financial year was ₹ 3,041 crores as against ₹ 2,525 crores in 2021-22. This is because of efforts such as resetting product prices last Februrary-March to meet the increasing commodity prices and reducing the material costs, he said.