ELGI Sauer Compressors Ltd, a joint venture between Elgi Equipments Ltd and the Sauer Compressors Group of Germany, has established a manufacturing plant with an investment of approximately Rs 400 million. Officials claimed the 50,000-square-foot factory in Kallapalayam, close here, will build cutting-edge high-pressure compressors, pressure-reducing stations, and portable breathing air compressors for industrial, shipping, marine, and off-shore industries.

The manufacturing plant would include an engineering centre that would give global support to the Sauer Compressors Group.

"This is an important milestone in our journey towards market leadership and sustained business growth for ELGI Sauer Compressors in India," stated ELGI Sauer Compressors Ltd chief executive officer Satish Kini in a company press statement.

"This factory, with expanded manufacturing capacity, will help us further consolidate the engineering, indigenisation, and product support capabilities of both constituent entities, as well as create a strong aftermarket network," he said.

According to Jairam Varadaraj, managing director of Elgi Equipments Ltd, "the ELGI Sauer joint venture, established in 2008, brought advanced technology, a wide range of products, increased availability due to indigenisation, and better product support to the Navy, marine, and related special applications."

"Over 14 years of collaboration, we have created a niche identity in the high pressure market in India and neighbouring countries," he continued. Today, ELGI Sauer Compressors has strong local market knowledge, chances for indigenisation to become more competitive, and opportunities to supply tailored solutions."

ELGI Sauer is "well positioned" to service new markets and achieve long-term commercial goals with its "world class facility," he added.