The Hindu Business Line : Elgi Equip on expansion mode

Coimbatore, Aug. 18 Coimbatore-based compressor manufacturer Elgi Equipments Ltd (EEL), which is building a factory in China, is looking at expanding its footprint to Brazil as well.

It has launched an initiative styled Elgi Business System (EBS) based on the principles of Total Quality Management (TQM) that it believes would be a platform for its leap forward.

Dr. Jairam Varadaraj, Managing Director, EEL, said that EBS was part of the company’s plan to gain a global footprint. It would help EEL integrate various functional systems the company had launched earlier and he expected this “initiative to give us an edge in terms of efficient and effective business processes that will serve as a foundation for our global expansion plans”.

Management gurus

Mr K. Sreenivasa Rao, Director (Operations), EEL, said EBS was based on the Toyota production system.

The company recently organised a training programme for the senior management team from various departments operating in different locations and handling multiple functions. Dr Noriaki Kano, the TQM guru from Japan, conducted it.

Elgi has engaged another expert, Prof Yukihiro Ando, in the implementation of EBS. Prof Ando has been helping Elgi in sharpening the problem solving skills of Elgi’s engineers for the past 18 months. Mr Mathew Kurian, General Manager (EBS), said EEL was able to improve the manufacturing flow through lean principles, which have led to shortening of lead times, reduction in inventory and improvement in productivity.

Overseas projects

Mr Sreenivasa Rao said EEL’s factory at Jiaxing in China is nearing completion. The company is also considering a proposal to set up a plant in Brazil in couple of years.

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