Elgi Equipments Ltd, a top Indian air compressor manufacturer with a strong global presence, has introduced a groundbreaking stabilizer technology for industrial air compressors. This new system helps eliminate pressure fluctuations, improves reliability, and saves up to 15% in energy costs. With this innovation, Elgi is strengthening its position in the global air compressor market, where it currently ranks 6th, with ambitions to break into the top 3 by 2035-36.
The new stabilizer system competes directly with Variable Frequency Drives (VFDs), a more expensive technology used by competitors. Unlike VFDs, which adjust compressor speed but can lead to instability and failures, Elgi’s stabilizer system ensures continuous operation, even if there’s a malfunction. This makes it a more reliable and cost-effective alternative.
“This is a first-of-its-kind technology,” said Jairam Varadaraj, Managing Director of Elgi Equipments Ltd. “A patent search confirmed that no similar invention exists apart from our own previous patent. Our system allows variable airflow at a constant speed, reducing frequent start-stop cycles that wear out compressors, extending their lifespan.”
If implemented worldwide, Elgi’s stabilizer technology could save up to 19 trillion units of electricity. Despite its massive energy-saving potential, the cost for customers remains low, making it an attractive alternative to VFDs. “Compared to a VFD-equipped compressor, our stabilizer system cuts costs by 30% while offering better reliability,” Varadaraj added.
Early users have already seen significant savings. One company using a 45-kilowatt machine reported saving ₹3.86 lakh in just six months. “With this level of energy efficiency, the entire machine pays for itself within two years,” said Venu Madhav, Director of Technology at Elgi Equipments Ltd.
The stabilizer system is compatible with all rotary screw compressors and, with some modifications, can also work with positive displacement compressors. Since screw compressors account for 85-90% of the global market, this technology can be widely applied. For existing compressors—both Elgi’s and competitors’—the company offers two retrofitting options.
Elgi is now ready to roll out the stabilizer system for commercial production, with a global launch planned over the next 6-7 months. The technology meets international standards and will become a standard feature in all future Elgi compressors.
The company has set an ambitious goal of reaching $2 billion in revenue by FY35-36. In the near term, it aims to hit $450 million by FY25-26, with the stabilizer system playing a key role in accelerating growth. With a team of 180 R&D professionals, Elgi invests 2-3% of its revenue in research and development each year. “If our team were based in Europe, our R&D spend would be 8% of revenue. But because we operate in India, the cost appears lower. What matters is the depth of innovation and the scale of technological advancements we’re driving,” Varadaraj explained.