Pressing
concerns
The
compressor industry in India is going from strength to strength after
a period of downturn, says Kaushik Karforma
A
compressor plays a key role in developing highly efficient technologies
that create power to turn motors. Today, it is being applied in a wide
range of areas to increase efficiency and is an important element to
enhance reliability in functions like lubrication and surface treatment.
Compressor is classified into reciprocal, rotary, scroll, screw, and
others depending on the compression technology used. New types of compression
like helical have also recently been developed.
In
India, compressors find use mainly in the manufacturing industry such
as automobiles, petrochemicals, refining, fertilisers, and natural gas
and oil exploration. Hence, the demand for compressors and drilling
equipment depends on the level of manufacturing activity in the economy,
fresh investments in user industries and implementation of infrastructure
and mining projects.
After
nearly 5 years of industrial slowdown, the Indian economy has witnessed
a surge in the last 12-18 months. This has been possible largely due
to revival of the manufacturing sector. Greater capacity utilisation
more than 75 per cent and demand generated by availability of consumer
credit, are responsible for this upturn, suggest data from the Centre
for Monitoring the Indian Economy.
Exports
are driving growth in the manufacturing industry. According to research
done by Edelweiss Capital, the manufacturing sector grew at a 4 per
cent compounded annual growth rate (CAGR) during 1997-2002 and 6 per
cent in 2002-03. The growth in 2002-03 was primarily led by exports
that grew by 19 per cent, compared to a 5.4 per cent CAGR between 1997
and 2002.
Thanks
to a combination of high quality components and vehicles, high productivity
and logistics management, multi-national companies are making India
their preferred destination for outsourcing. For instance, Tecumseh
Products, a $1.4-billion engineering multinational, has invested about
$100 million in its Indian operations since it commenced operations
in 1997. Techumseh Products is going to outsource its manufacturing
requirements to Tecumseh India. Through its 100 per cent owned Indian
subsidiary, Tecumseh Products India, it owns two manufacturing facilities
for air conditioner compressors and refrigerator compressors at Hyderabad
and Ballabhgarh respectively. The company wants to develop India as
an export hub for not only compressors, but compressor components as
well. In fact, with a recession in the US economy, Tecumseh Products
has decided to relocate its compressor components plant to India, primarily
due to cost efficiencies and availability of skilled labour.
Apart
from Tecumseh, players in the market include Elgi Equipments, Atlas
Copco, Ingersoll-Rand, Kirloskar-Copeland and LG Electronics. Like Tecumseh,
these companies continue to attempt to meet the highest standards of
technical prowess.
Elgi
Equipments
This
Coimbatore-based company claims to be India’s largest manufacturer of
compressors. The compressor business accounts for 85 per cent of the
total sales of the company and 90 per cent of its profits. One of the
significant technical coups achieved by Elgi in 2002-03, claims the
company, was the development of the world’s smallest screw compressor,
the Micro Rotary Compressor. It weighs about 2.88 kg and measures 4’’
x 4’’ x 4’’, with rotors of 28 mm and 35 mm in diameter. It can deliver
an output of compressed air ranging from 1 litre per minute (lpm) to
300 lpm. The company also plans to roll out its first turbo-compressors
in the market in 2004. It is bringing this technology to India in collaboration
with Samsung Techwin.
Ingersoll-Rand
Ingersoll
Rand (India), the Indian subsidiary of Ingersoll-Rand Company, US, has
presence in three business segments: air solutions, infrastructure and
climate control. The US parent holds 74 per cent of the Indian company’s
equity.
....CONTD
