The Coimbatore-based Elgi Equipments Ltd, leading manufacturers of air compressors and automotive equipment, has entered into an agreement with CompAir UK Ltd, one of the world's leading manufacturers of compressed air and gas sytems.

The agreement would expand the range of Elgi, and help enhance exports. It would also widen its sphere of product application and technology and offer complete air solutions in the oil-free compressor segment, company sources in Coimbatore said.

Elgi already has signed a technical collaboration with MAHA of Germany, a premium Workshop Equipment manufacturing company.

Under this agreement, the company would be manufacturing high-end electronically synchronised two-post lifts. "These will be manufactured and sold in the Indian market under the ATS ELGI-MAHA name and exported to other Asian countries under the name of MAHA. The project is already under way and the products will be rolled out in early 2008:, sources said.

Elgi Equipments posted 100% increase in profits after tax to Rs 21.6 crore for teh first half year of 2007-08, against Rs 11 crore during the same period of 2006-07.

During the period, sales grew by 35% from Rs 175.5 crore to Rs 237.2 crore. Profit grew by almost 100% for the same period.The results were approved at the board meeting held recently.

Compressor business continues to post robust growth. Almost all segments of the business have grown healthily. Margins are under pressure; however operational leverage will continue to support the bottom line.

Though the automotive equipment business has been sluggish due to lower sales of cars and two wheelers, performance during the second quarter has shown an improvement over the same period last year.

This business has been spun off into a wholly owned subsidiary ATS ELGI Ltd., effective August 1, 2007.