Chennai, NFA Post: Coimbatore- based Elgi Equipments, manufacturer of air compressors, has signed a technical licensing agreement with DVP Vacuum Technology SPA of Italy, to acquire from the latter the know-how, technical information and assistance to assemble, manufacture and sell the vacuum products in India.
DVP will provide an exclusive, non-transferable right to Elgi to manufacture and sell the vacuum products that comprise oil-free and oil-lubricated rotary vane type vacuum pumps with possibility to add other types in due course, with mutual consent. For geographies other than India, DVP and the company will discuss the manner and method of engaging with each other.
Elgi will pay DVP a lumpsum fee towards transfer of technical information and training. Further, a royalty will be paid to DVP for usage of DVP’s patents, other industrial and intellectual property rights and technical Information as per the terms and conditions in the agreement.
DVP is prepared to provide assistance to the company with regard to problems of import substitution, production techniques, engineering developments, variation in designs, etc. to manufacture the vacuum products suitable for the specific requirements of the Indian market, Elgi said in disclosure to the stock exchanges[RC1] .
Elgi Equipments recorded a consolidated profit after tax (PAT) for the third of FY24 of Rs 83.9 crore as compared to Rs 80.1 crore in the same period in FY23. Consolidated sales of the company stood at Rs 822 crore as against Rs 772 crore.
According to the company. the demand continues to be moderate across all geographies. The automotive business is continuing to grow, albeit at a slower pace than the annual plan. As for outlook for Q4 24, it expects the performance to be better as it normally is, on the back of year- end demand.
