Driving India’s growth with value and vision
26th January 2025
India's industrial growth is at a pivotal juncture, and navigating its challenges requires vision and determination. Dr Jairam Varadaraj, managing director of Elgi Equipments Ltd, sheds light on manufacturing hurdles, the role of businesses in shaping the economy, and the path forward for a thriving industrial landscape.
Value Over Price
India is on track to become the world's third-largest economy by GDP, but when measured by per capita income or equity, there's still a long journey ahead. The real challenge lies in shifting our focus away from gross metrics towards true measures of living standards.
To achieve this, we must prioritise technology and product quality, placing Value above price. A price-driven approach is unsustainable for the country and for businesses. Instead, we must redefine development, creating strategies that focus on genuine, long-term growth for India and its industries.
The Synergy of Technology and Quality
At ELGI, we've reoriented our- selves towards creating Value. For us, Value is about offering the best solutions to customers worldwide and pricing ourselves fairly based on that Value.
As a "Made in India" label, we've often been associated with discounts. However, we're deter- mined to change this perception by demonstrating that technology and quality are our strongest pillars. These elements will help bridge the gap until the "Made in India" label is recognised globally as a premium standard.
Driving India's growth with value and vision
Dr Jairam Varadaraj, managing director of Elgi Equipments Ltd, shares his vision for India's industrial growth, emphasising value over price, customised solutions, sustainability, and workforce development, as the company strives to redefine "Made in India" on the global stage.
Delivering Value
India has the resources and access needed to succeed globally, but it's unrealistic to expect to become number one overnight. True growth takes time-it's a long runway. While the allure of quick success is tempting. real progress demands patience and focus.
It may take a decade or two for us to achieve global leadership, but every year will bring incremental growth. What matters is staying committed to building a global presence rooted in Value, rather than chasing short-term gains through discounts.
Customised Solutions: India's Niche
India doesn't need to compete in mass production, where countries like China dominate with their massive machinery and investments. Instead, we should focus on developing customised solutions quickly and efficiently. By leveraging technology and quality, we can carve out a niche and make a significant impact globally.
Preparing India's Workforce
Ultimately, everything comes down to people. Even the best strategies and systems are meaningless with- out skilled, committed individuals. Unfortunately, our education system is outdated, with insufficient investment in teacher development.
At ELGI, we've tackled this is- sue through our Vocational Training School (EVTS). Situated on an 18,000 sq. ft. site at our Air Centre Plant in Kinathukadavu, Coimbatore, EVTS offers a three-year programme based on the German model.
We train underprivileged boys and girls in skills such as machin- ing, fitting, welding, motor winding, and foundry work, alongside phys- ics, maths, and language. Recent batches have included 50% women, and we're working towards having 30% female representation on our shop floor.
Leveraging AI And Technology
We've embraced AI at multiple levels. For instance, our Air-Alert IoT device predicts breakdowns and alerts customers in advance, ensuring their machines run at full capacity. Al also enhances our sales strategy, creating tailored presentations based on individual customer needs.
From India to the World
Our global journey began in the carly 1990s, driven by the vision of becoming a significant international player. Over nearly 30 years, we've laid strong foundations in technology, quality, and talent.
By 2036, we aspire to be among the top three air compressor companies globally. While we're well-established in India, gaining recognition on the world stage remains a challenge. Convincing global customers that "Made in India" represents superior solutions is a key focus for us.
Profitability with Purpose
For us, success isn't measured solely by financial gains but by the positive impact we create. One of our most significant CSR initiatives is the ELGI school, established in 1989 in Coimbatore. Spanning 4.2 acres, it provides transformative education for urban poor children with exceptional potential, enabling them to gain admission to top colleges.
Beyond education, we support initiatives like CANKIDS, which provides financial aid to children with cancer, and the Olympic Gold Quest (OGQ), which helps athletes from low-income backgrounds with nutrition and coaching. We also sponsor the Coimbatore Marathon, supporting cancer patients.
Sustainability and Green Technology
Sustainability is integral to our operations. Around 60-62% of our factory's energy comes from solar and wind sources, with a target to reach 100%. We've also made significant strides in water conservation, relying on rainwater harvesting and recycling while eliminating groundwater use.
Additionally, we've helped local suppliers transition to CNG or electric vehicles for material transport, reducing fuel dependency and promoting green logistics.
Contributing to India's Growth Story
Our purpose is guided by the principle: "Do unto others as you would have them do unto you." True success lies not in valuations but in the Value we create for customers, employees, suppliers, and society. By 2036, we aim to be among the top three players in the global air compressor industry, while continuing to prioritise Purpose alongside profit. This dual focus ensures we contribute meaning- fully to India's economic and industrial growth.
Focusing on Value, Not Valuation
At the end of the day, what truly matters is the real Value a company creates-not just its market Valuation. While valuations are important, it's time we return to focusing on what counts: the Value we bring to the world.
