Air compressor manufacturer Elgi Equipments has ventured into vacuum-pump business by entering into partnership with Italy-based D.V.P. Vacuum Technology to manufacture, assemble, test, and sell D.V.P.’s vacuum products in India.
Jairam Varadaraj, Managing Director of Elgi, told The Hindu on Friday that vacuum pumps will be a separate vertical now for the company and the pumps will be sold as Elgi’s products. The company will initially focus on high-intensity vacuum pump using industries. The Indian vacuum pump market is valued at $150 million to $200 million. Elgi aspires to achieve 10% of the market share in the next three to four years and will have presence across the entire range of vacuum pumps. “It is now time to incubate the business in India and over a period of time, take it to the global level,” he said.
“This is a strategic move to expand our product portfolio, extend our reach in high-growth markets, and leverage meaningful technological, manufacturing, and marketing synergies,” he said in a press release.
Roberto Zucchini, President and CEO of DVP, said with the agreement, DVP is entering the Indian market, leveraging the manufacturing structure and distribution network of Elgi. “There are interesting opportunities for a synergic exchange of components and, consequently, the possibility to empower mutual business development.”
