ELGI EQUIPMENTS LIMITED
Elgi Equipments Limited is a leading air compressor manufacturer based at Coimbatore, Tamil
Nadu with a broad line of innovative and technologically superior compressed air systems. Elgi
has earned worldwide distinction for designing sustainable solutions that help companies achieve
their productivity goals and keep the cost of ownership low.
The Product Portfolio
Elgi offers a complete range of compressed air solutions from oil-lubricated and oil-free rotary
screw compressors, oil-lubricated and oil-free reciprocating compressors and centrifugal
compressors, to dryers, filters and downstream accessories.
Oil Lubricated Rotary Screw Air Compressors
Oil Free Rotary Screw Air Compressors
Oil Lubricated Reciprocating Compressors
Oil Free Reciprocating Compressors
Centrifugal Compressors
Dryers, Filters and downstream accessories
For Special Products: 8 Weeks or more
All the products with more than 75kw capacity are sold through Direct Sales without dealer
involvement. The delivery time depends on the type of customer and it is approximately 10
weeks.
The organization has an Information Management module called BaaN which is used for feeding
all the purchase orders and internal processes.
Global Presence
ELGI exports its compressors across the globe. The organization is broadly classified into 3
divisions based on the regions it covers.
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There is a manufacturing facility in India and China
Acquired Belair SA of France which is engaged in the assembly, sales and service of
Industrial compressors for more than 25 years
Acquired RotairS.p.a of Italy which designs, manufactures and distributes a range of
compressors and allied products for construction and industrial sectors across Europe
Acquired Pattons Inc. of USA which is primarily engaged in the business of distributing
industrial compressors and air products.
ELGI has its own warehouse facilities in Australia, Brazil and Middle East
Competitive Advantage
Cost leadership in all segments as the products are domestically manufactured
Advanced research and design facility providing technologically superior products
Well established brand name in the industry
Wide and efficient after sales support which is superior when compared to the other
players
Competitors
The Indian Compressor market is dominated by several foreign and domestic players. The key
competitors to ELGI are
Atlas Copco has the capability for providing entire air solution
Ingersoll Rand strong in the Oil free market and it has full portfolio of products
BOGE They are into oil free compressors and large screw compressors
Kirloskar Pneumatics Capability includes reciprocating, large electric screw and
centrifugal compressors
The small compressor segment attracts huge number of domestic players and is very
much scattered
Organization Structure
ELGI Sales Organization
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The different Sales Engineers have different roles and they are based on either the product
classification or region wise classification or a mix of both. The Area Sales Manager is
exclusively handling the Turn key Projects. The Major focused segments in the North are
Power Sector
Steel Sector
Cement Industry
Textile Industry
Roles of employees at different levels briefly
Engineer Sales
Generate fresh sales enquiry for the assigned region/sector (Textile/Steel/Power/Cements)
or product (Oil Free/Screw/Centrifugal)
Collect payment receipts from the customers on a timely basis
Collect other statutory receipts on time
Ensure achievements of targets
Coordinate with the internal team and the customer to ensure timely delivery of the order
Area Sales Manager
Identify and hold discussion with customers who have the potential for releasing new
tenders on timely manner
Maintain good relationship with the decision makers and understand the requirement
properly
Coordinate with sales engineers for specification negotiation and price clarification
meetings
Regional Sales Manager
Train and review the ASM and Sales Engineers
Forecast the demand for the different product types quarterly and annually
Identify the platform for sales promotions and coordinate with the marketing team
Ensure the cash flow happens from all the divisions properly
National Head Direct sales
Demand Forecast for the sub-assemblies like Motors, HV lining etc. along with that for
the individual products
P&L responsibility for the vertical
Identifying new markets to enter into and which segments to cater newly
Responsible for the cost reduction activities for the entire vertical
Coordinating with the after sales and other internal organizations to ensure the timely
delivery of the service or the order of sale
Responsible for signing up new contractors
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Responsible for identifying the training needs at different levels of the vertical
Performance evaluation of the regional managers and other employees in the vertical
Vice President Sales
The VP takes care of the entire performance of the sales and after sales in India. His
responsibility include planning for the different strategic tie ups to enhance the sales in India. He
also ensures the coordination between all the channels of sales and aftersales so that together the
profitability of the firm increases. The VP is responsible for the P&L for the entire sales division
in India. The allocation of the resources including the target for the next year is finalized by VP.
Director ISAAME
Director is responsible for the sales in India South Asia, Africa and Middle East (ISAAME). He
along with the top management (including VP) takes care of strategy formulation considering the
growth segment-wise, product-wise and also the macro-economic conditions. Director is
responsible for all the top level strategy formulation in all these regions. The identification of the
corporate strategy, which all segments to target and all other decisions are decided with the
consent of him only. He will be in touch with the other directors of the organization and directly
reports to the Managing Director. The region wise division of the Target and other plans is
decided with his consent. The P&L of the different geographical locations also comes under his
purview.
Linking Marketing Strategy and Sales Strategy
The organization has a dedicated Marketing Division which is divided based on the region. The
classification of the marketing division is as shown below.
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The division is responsible for conducting Market Research based on regional basis and they
identifies the key growing segments and the product categories They also keep a track of the
product portfolio and the life cycle of the product. Based on the observations they devise a
marketing strategy which is communicated to the sales organization.
Based on the suggestion by the Marketing department the Sales team, together with the
marketing team devise the sales strategy. Usually Marketing strategy includes
Sales Promotion Camps like EXCON 2015 an Industrial machinery show
Sponsoring and participating in exhibitions like INTEC Exhibition
Participating in the trade fairs
Publishing monthly magazines
Launching new products based on the market demand
Sales strategy is usually in line with the Marketing strategy. The sales officials of the concerned
regions will be participating in the exhibitions/trade fairs/camps to identify new clients and also
to build and improve relationships. Other strategies are
Key Accounts Strategy for high value products
Price cutting strategies based on the customers
Repeat orders by integrating after sales together with sales organization
Strategic tie-ups for more reach (like Voltas Tie-up for textile compressors)
Generating tenders with the specifications rather than waiting for the tenders to come on
its own