ELGI & SAUER JV FACTORY SOON AT COIMBATORE
Tamil Nadu-based Elgi Equipments Ltd. (EEL)on Monday joined hands with J.P. Sauer & Sohn of Germany to form a joint venture — Elgi Sauer Compressors Limited — to provide advanced compressors, indigenised for customers like the Indian Navy, marine and special segments of the industry. Announcing this at a press conference here, EEL Managing Director Jairam Varadaraj said the joint venture would also provide production and logistic support for the Indian Navy, marine and specialised industrial applications.The company’s production unit has been set up in Coimbatore in Tamil Nadu with an investment of Rs. 2.80 crore and with an installed production capacity of 400 compressors annually . While JP Sauer & Sohn will hold 74 per cent stake in the new venture, EEL will retain the balance. . The new entity will be headed by Satish Mini as General Manager.Harald Schultz, Managing Director, JP Sauer & Sohn said that through this joint venture it was planned to explore business opportunity in all the sectors of the Indian market and to provide products with the latest technology.
Allaying fears that global meltdown will have any impact on the new entity, Mr. Jairam said the shipping and defence businesses were not much affected by the global slowdown. In fact, defence expenditures were necessary for the security of the country and as such it is independent of market volatility.
