Manufacturer of air compressors, ELGi Equipments has entered into a technical licensing agreement with Italy-based DVP Vacuum Technology SpA to assemble, manufacture, and sell vacuum products. The company envisages it as a separate vertical.

As part of the collaboration, ELGi will invest in engineering resources to absorb the DVP technology and localise them for the Indian market. The company will manufacture vacuum products out of its unit in Coimbatore. Investment is planned over the next two years for an assembly line, and for a sales and service organisation. 

The entry into the vacuum product segment is part of the company’s long-term growth strategy, under which it has identified a USD 20-21 billion global business opportunity, comprising multiple products such as compressors, vacuum products, aftermarket accessories and others.

The firm will allocate some of the resources towards the vacuum products, incubate this business in India, and then expand globally. Across manufacturing, technology, there are a lot of synergies between compressors and vacuum. The global vacuum pump market is estimated at USD six to seven billion in 2024.

Over the last 10-15 years, the company has established its compressor business in some of the largest geographies, and witnessed good traction in the business. Its overseas footprint includes subsidiaries in Europe, US, Brazil, UAE, Australia and Indonesia.