Elgi Equipments buys Italian company

Elgi Equipments, the Coimbatore-based manufacturer of air-compressors and automobile service station equipment, has strengthened its international presence by acquiring Rotair S.p.A, an Italian compressor company.

Elgi informed the Bombay Stock Exchange on Thursday that it had acquired 100 per cent stake in Rotair through its subsidiary in Italy, Elgi Compressors Italy S.r.I.

Jairam Varadaraj, Managing Director of Elgi, has said in a release that with the acquisition, Elgi will have access to new technologies and product lines and also gain a foothold in markets it is not present. Rotair is known for its innovation, and is into design, manufacture and distribution of compressors and allied products for the construction and industrial sectors.

Its products are sold in over 60 countries and its annual turnover is 15 million euro. The promoters of Rotair would continue in the management and its existing management team would run the day-to-day operations, he added.

Giovanni Donadio, President of the Italian company, has said in the release that “Elgi is the ideal partner to take Rotair to the next level of growth and development.”

Elgi Equipments, which registered Rs.793 crore turnover in 2011-12, has manufacturing facilities in India, China and France. In 2010, it acquired France-based Belair, which is into assembly, sale and service of industrial compressors, piping, fittings and accessories.

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