ELGIEQUIP — earnings call

The transcript as filed. Every paragraph is addressable: its link names the page and the position it sits at in the call.

Prepared remarks

Yeah. So yeah · Management

Good evening, Everyone, can you hear me?

All, of you at the back.

So what?

I will do is I will quickly.

We'll step back little bit to see how the overall global compressor industry has been doing where we are in this industry and where we are actually heading towards so what you see on this slide on the left-hand side is over a long term of around 11 years, how the overall global air compressor industry has been doing.

It has been growing at a CAGR of 3.5% and we are around 21 billion dollars in the size so overall industry size during the same period, ELGI actually grew around 5.8% CAGR and we are today at around $390 million so we have been growing at 1.7 extra market and how the industry configuration actually looks like?

So, what you see on this slide is the overall top ten players and the rest have been combined bottom one at in others.

So you see consolidation still happening at the top, the top two players constitute around 52% of the market.

Then you have the next three players Kaiser, Hitachi Sullair and Fu Singh, which are close to around 1 billion revenue each of them then comes ELGI at number six in FY24, the same was as well last year.

Then you have the players like Kaiser and Dusan and Estevan so overall, industry around $21.3 billion dollars, the top players have more or less remained constant Hitachi Sullair has jumped poster You know merger and of course we have also jump given our faster than market growth too By three positions to number six over the time period of last 11 years.

If you see how our trajectory has been, we are currently this year we are expected around 412 we won 390 last year.

This is including automotive component business ATS as well as ELGI compressor business.

We are on track for our 450 million which we have committed for FY-26 which means 8% cap over the period of 24 to 26 Most of it is actually being contributed by India.

Rest of the world doing it 7% and these are the key figures which also Indranil talked about.

We'll move to some of the new products that we have come up over the last year and some of which Jay and Anvar were also talked about.

So first one being the vacuum business, we had this technology partnership with DVP last year and then we went into the execution mode today where we are, you will see on the left-hand side we have actually onboarded a team.

Three people are already on board for the sales to more expected to be higher this year.

Product we are focusing on Rotary vane type vacuum pumps which represent around 70% of the market by volume when I say 70%, these are the most dominant vacuum pumps in the market.

Go to market.

We are actually targeting the OEMs both through direct sales as well as through channel partners and we are in the process of onboarding channel partners as well uh, we have already received order so far of around 55 to 60 pumps since we started, you know, commercial business in October and at the same time, while we are doing this, we are also investing in localization, so.

We are We have already started work on this.

By April, we expect to localize around 60 to 80% of the portfolio by market coverage and by August this year, we are expected to localize most of it I think you all have seen this vacuum pump we talked about last in the last meeting as well we have actually we are working on two types of vacuum pumps with DVP, Rotary vane dry as well as lubricated, and in future we may go on to other technologies as well .Anvar talked about ISSAME facing our India business facing some challenge from a low cost product imports, what we call here is Tier 4.So this is our terminology when we say Tier 4, we actually refer to Tier 1 and Tier 2 as the, you know performance driven products for those customers who actually value performance, the most Tier 3 is an optimum of performance and price and Tier 4 is what we say customers who are really determined by the driven by the price of the product.

Now this is 1 segment.

We have seen growing significantly over the last 3-4 years mostly driven by low-cost imports into the country and today they actually.

Consist, a significant volume of the overall industry size.

And so far we were not playing in this segment.

But given that the volume has been increasing, it's inevitable that we also have a presence here.

And therefore, with this regard, we have actually conceptualized the product in this segment.

We are not yet commercializing it, but it is already conceptualized and you can see how the transition has happened from EG which is our Tier 1 to EQ Tier 3 and Tier 4.

And while maintaining global standards having options for variable flow, dryer and tank bound design options.

This, product has significantly lower footprint.

Its weight is significantly lower and as well as material cost is at 60% of what a tier one would look like.

Coming onto the other products that we came up with, so the overall focus this year was really in driving energy efficiency.

It was also in expanding our product portfolio as well as integrating backward.

The first ones which I want to talk about is about oil, lubricated screw compressors.

Here we came up with Super Premium 90-160.

If you remember, last time we talked about 90-110, we have extended the range now to 160 kilowatts.

These are two stage i-4 motor driven premium products.

They offer class leading energy efficiency actually the specific power consumption is the best that you can find in industry.

These products are enabled with very advanced controllers.

Air alert as an IOT industrial IOT suite as well as possibility of having integrated a heat recovery system.

We'll talk about heat recovery system again later in the next few slides.

Another product that really is quite popular now, especially in markets where energy efficiency is very important, is EG-11 to 45 permanent magnets in synchronous motors these are in house design, developed and manufactured motors and the motor plant PG actually refer to in his talk.

Moving on to the tier 2 in EQ series, we launched high pressure 11-to-45-kilowatt product.

This product is actually targeted towards very specific laser cutting application and can operate at 15.5 bars.

In the encapsulated series, we try to develop and integrate the product here in India and export from here.

So instead of assembling tanks, the compressor and the dryer in the region, we decided to actually assemble it here in India as a result of which we are able to compact the footprint standardized offering as well as have better quality control in the process.

And this also gives a significant cost benefit.

We also added new features in terms of features.

I'll focus here on the oil free side of the portfolio.

In oil free, we added auto protection kit to 90–160-kilowatt product now this outdoor protection kit helps you, you know, protect against rains, no wind, dust and so on.

It's a bolt on design, quite modular and extremely easy to use we also offered integrated air heat recovery system in 92 kilowatt air cooled now heat recovery system actually helps you retain 95% of the heat which is generated in the process of compression and which is quite useful if you are using this heat for heating any say process water, preheating water for boilers If you have one in your facility, and so on.

Therefore, in markets where energy cost is very significant.

Heat recovery system becomes quite critical.

In, reducing the overall energy cost as well as optimizing the carbon footprint.

This year we also came up with our own integrate with our own refrigerated dryers, both as standalone option as well as integrated option.

These dryers are made in house from 20 to 500 CFM We already have the portfolio, and we'll further expand into higher CFM’s.

They have stainless steel heat exchangers and a very compact footprint for India.

It's already being sold.

In the portables, we came up with PG 250-850-290.

Now this is an offering which is available both for construction and mining as well as water well.

This is this product has dual pressure offerings.

It it's also comes with an electronic engine and what is more important is especially in the construction and mining in coal mines, it can be actually you know accommodated on an extra excavator.

So, it can be excavator mounted and that's quite convenient for the.

Customers over there this product also offers extremely efficient drill penetration.

Now this is a product we talked about Jay talked about during his talk on rail.

So, this is what we have actually developed for the railway project which we won last year.

This is under some project under slang screw compressor for real application and it while we have developed in, we are already shipping this unit to the customer 5 loco sets have already been supplied which means around 10 AGT - US now AGT-US are air generation and treatment unit.

It consists of compressor as well as desiccant dryer.

All of which have been made in House.

That’s it from my side.

I will invite Venu now.

Thank you.

VENU MADHAV (DIRECTOR -PRODUCT EXCELLENCE & INNOVATION)

Thank you, Prem.

Good evening, everyone.

My name is Venu Madhav and I represent product excellence and innovation team at LG.

My team continuously works on meeting the customers’ needs stated needs and all through regular product development and unstated ones through innovation.

So, I'll be showcasing one of such innovation, what we believe the result will revolutionize the way in which the compressor is operating in today and by the way, it is going to meet the unstated want of the customers.

I'll send the context with a simple example what we are very familiar.

Let's say we are in a room and there is an A/C standard A/C.

The A/C will be cuts in and cuts out depending upon the number of people present in the room and also the ambient changes outside the room.

So, for the solution.

So, the A/C will be continuously cuts and cuts off.

So it is a reliability issue because of it is fluctuating on this one solution.

What we can think of is an inverter A/C.

But still, it will be changing its capacity, continuously increasing and decreasing to maintain the variations with respect to number of people or that room temperature to ensure the comfort.

So the operation is efficient from a variable speed perspective.

However, still it is less reliable, so it leads to some efficiency challenges because it is unstable.

Whomever we buy this AC’s, whether it is a Daikon or Voltas or whatever it is.

This is what it is going to happen and as a customer, we all believe this is what it is going to be happen.

So, we accept it, though we don't want it.

So, in the back of our mind, we don't want this unstable operation, but we accepted it. that's called unstated want and how do we overcome the unstated want?

Is the one what we are talking.

We can relate this similar principle similar to the compressor, how it operates in an industry.

A compressor is connected to the plant and the plant has various utilities.

And each utility will deed air at different points in time that that requirement may be continuously varying.

Some utility may be at a breakdown.

So, what's happen is there is always a gap between what is the compressor is producing the capacity of the customer compressor and the demand from the plant.

So, this gap in the demand will always create supply the gap in between the supply and demand creates a fluctuation and makes the compressor to operate in, cut in and cut out.

Kind of operation similar to the A/C.

What it is so there are VFD driven compressors now.

They tend to meet the capacity balance.

They try to balance the capacity with respect to demand.

However, they are still the operation is unstable.

Let me explain in the next slide why I am take just telling it as an unstable.

Let's see how a compressor works with and without VFD in an unstable operation.

When the variation is demand is happening, this is the chart without the compressor.

Without VFD you can see how the pressure fluctuations will be happening.

So, the compressor will be cut in, cut out, cut in, cut out.

So, there is a lot of variation in the pressure is going to happen on this now once things that VFD can balance the capacity, it will be very stable.

But practically it is not because VFD it is changing the motor RPM; it is going to change the current.

In the system, so some current is changing, fluctuation is there.

It impacts the overall the current power quality in the plant also and sometimes these VFD’s will create harmonics which are very, very trivial, be dangerous for the overall power quality of the system.

They need filters to attenuate these harmonics, which are heavily expensive.

By the way, the VFD itself is 30% excessive money to handle it, so while by putting 30% excessive money.

We appeared.

There is a balance between demand and capacity, but still the operation is unstable.

So, any unstable operation is inefficient and ineffective.

So we're talking about this unstable.

So, what it means to a compressor.

Let's look here.

In a compressor, there are two types of parts.

Compressor deals with flow.

There is a flow related parts and compressor.

There are kinematic parts.

The parts are moving, so when the cuts in and cut in is happening when there is a huge amount of fluctuation is happening.

You can see there is a zero-flow inconsistent.

Then there is a maximum flow, so it is highly unstable with respect to flow that system doesn't understand what to perform, where to perform optimally, so this is always an unstable operation and look at kinematic part It is an intake.

Well, what I am showing in the compressor you can see when the machine is going to cut in and cut out.

This is becoming on and off, so in this itself there are 6 mechanisms.

Every mechanism is going to undergo stress and fluctuations that leads to reliability.

And unstable issues.

And as I repeatedly said, an unstable operation will never be efficient and effective.

We need there are such 30+20 =50 parts of such parts so combining they will impact the efficiency and reliability of the machine.

I just want to show you in practical situation how exactly it means this is a video.

What it is showing, how a compressor.

Still, I am focusing on the intake wall, you can see this here.

So, see the actuator how it is moving.

It will go such number of fluctuations.

Just to sum up any, there will always be a demand for capacity variations.

Compressor will try to operate in majority of the cases in an unstable mode leads to efficiency and reliability issues a VFD appears to balance the gap between the capacity and demand.

But it is expensive.

But it will bring additional failure modes what it is.

So, this is and whomever we buy the compressor, whether it is from ELGI or any competitor also.

This is what it is in the customer mind.

This is accepted, but he wants it better solution for this.

So, we engineered a solution which the innovative stabilizer with the way in which the system eliminates the instability while maintaining cost and without incorporating any new failure modes.

So let me explain.

How does it work?

So, the principle of stabilizer the principle is very simple.

First thing is recirculate and recover.

Recirculate the excess capacity within the system and recover the energy all possible in losses and recover energy recover this energy so this is the principle what we are doing.

So, the principle appears very simple recirculate and recover the technique and control are novel.

Here, that's what the value, what it can come to this.

Maybe I'll take you through.

Little bit mechanism how this actually works be technical.

In any compression process, primarily a rotation will happen.

Prime Mover is going to rotate, so it is going to rotate 360° per revolution first thing what happens is the volume will increase.

Even the volume will increase, suction will happen.

Compressor starts sucking air into the system and when the suction is happening, the zone is not stable pressure.

There will be a lot of fluctuations before starting compression there is a stabilization zone is required.

So we have a zone called stabilization.

Once there is a stabilization, volume starts decreasing, pressure starts increases.

So, pressure will increase.

Then after reaching the desired pressure, delivery will happen at constant pressure.

So, this is how the actual compression process will happens.

There are four zones, suction stabilization, compression and delivery.

Now our principle is recirculate and recover OK.

What are the opportunities for us to recirculate in this?

Principle is so the first thing is that suction and stabilization there is a for us to recirculate take the air back we need a pressure difference, so this is the first zone.

We have a pressure difference exist very minor increase in pressure will happen from atmosphere to here.

Here.

So very less amount of work will be done on the air but identifying the zone and we can able to connect it back to section, we can circulate re- circulate around 30% of the air, without losing any energy into this.

So, this is the first principle What we are doing and the next which zone we can do there is this is high pressure zone but unfortunately this is a unstable pressure.

Pressure is keep raising we cannot maintain the capacity by any means, so this is not the zone for us to take there so what is next?

Next thing, what is available to us is the separated tank where.

We have a constant pressure we can take the air back into the section, but by the time air reached here, we can also think that almost work is done on there.

So there, there could be a possible loss.

So, what when we are taking the air back on which work is done?

There is a loss.

How do we recover it?

Again, identifying a position there.

What we have done is we'll take the air back to suction.

We'll raise the suction pressure.

So what happens?

The net pressure ratio compressor previously working from one to seven bar.

Now it will work from two to seven bar so the net pressure ratio comes down, so the power required to compress there the 100% of the air will come down.

But we are recovering, let's say 30% of the air we lose the.

Air only on that 30%.

So, the gain is more.

The loss is reasonably less still.

There could be some inefficiency, but it will get balanced, so this is the two zones what we have identified.

This ensures the complete balance.

From the plant, even from 0-100% variation, we could able to Wellness the capacity of there so.

Anik layout perspective This is how it looks.

These are not the exact positions.

One progressive wall.

A continuous wall will be there in the air end side and one another wall will be there from air end to sorry suction to the tank side they together will operate and balance they together will operate and balance and ensure the capacity.

And the demand balance between them?

So and if we look into the compressor, the first one you can see there is a motor, compressor and controller this machine will be going into on off control and with the stabilizer system there is a new logic built into it this is very intelligent logic to ensure trigger these two walls in line with the overall capacity balance.

So this is all happens in within the internal circulation and ensures the balance of the customer.

Come compressive plan demand .Now this is what we expect.

So this is the system with compressor pressure lot of fluctuations.

Are there VFD still it brings electrical fluctuations whereas stabilizer system will ensure the stable operation in terms of pressure and in terms of motion of the motor and other systems OK. so this is what we anticipated and we did all the internal tests.

We ensure these results are there now.

Is this really true in an actual environment?

We have put so many missions in the field and I'd like to share you.

This is one site and you can see without stabilizer the these are the number of fluctuations per hour this machine used to fluctuate even 62- 62 times in an hour.

Every minute it is going cut in and cut out.

This is the site and in that site, when we put, when we just added stabilizer system the fluctuations came down to 0.

So this ensures the machine is stable.

So we talked about efficiency also correct what it is.

So it is not from our side our calculation.

This is what customer said.

So he is very happy with the way in which this machine is operated from stable and other things and he is telling he could able to save 3,86,000.

It is almost equal to the material cost of the compressor and this saving will replace are practically we can get the complete machine will be paid back in two years and the stabilizer system if somebody adopts it, will be paid in a couple of months time.It won't take more time for that.

So we are confident the way in which this is working and that the stableness what it can bring without adding additional failures and cost so let's see practically.

We saw how the unstable operation.

Now we can see how the stable will operate.

We do not yet.

So now we are seeing the unstable operation.

Now we will activate our system.

You can't see this escape.

So in the save notification package.

Just for us to see where we'll just go back and then switch off that this will go to Unstable mode again, so it clearly indicates this system will ensure the stability under various operating conditions and then It's big reservoir to be a 3D, take a couple of seconds to do that .But now it becomes .So that's what it is and we can see the stabilizer system enhances efficiency and reliability and it revolutionized the compressor.

The way in which it operates, what customer is thinking, it makes him satisfied.

Delighted with this.

This innovation delivers significant value and it positively contributes to environment also.

So this is patented because we did a patent search across the globe and it is patented.

To be test and we are working on to commercialize it progressively soon.

Thank you.

Now I request Gaurav too present on this.

ANALYST

got it and second again on Ingersoll Rand.

Just a basic question.

Their margins are like 2X of where we are.

I understand they're heavy on centrifugal.

We are heavy on screw, but if you could explain to us why there's such a huge margin differential between us and Yeah, EBITDA level.

Questions and answers

ANNUAL INVESTORS MEETING -2025

FOR ELGI EQUIPMENTS LIMITED · Research Analyst

Hi everyone.

Good evening.

I’ve joined the company 6 months back, delighted to talk to all of you.

After a super simple presentation from Venu, I'm not going to be talking about the neural network, so I'm going to be talking about something very simple.

In terms of how we are going to be looking at the digital road map for this organization.

We’ve sort of invested and looked at.

The future road map for investment into our digital capabilities.

But having said that, we've done two things.

We've broadly looked at aligning it very tightly with our overall business preference and priorities.

And secondly, we've been very mindful in terms of how we are going to go about it.

While the investments will be made and there are clear prioritizations that are being made in terms of where we invest.

When we invest and then what do we expect out of those investments?

Clearly what we are looking at is some of the achievements that have already been made in past, how can we expand build on it?

Secondly, we are also looking at stabilizing some of the instabilities that we had in our core application structures and you can see that some of them are actually driving our growth and helping us support our future growth ambitions some of them will be more focused around the productivity.

We’re looking at a fundamental change in our operating model.

We are looking at creating our global technology platforms.

We’re creating our global digital channels and hence through that we will be able to increase the overall speed of deployment, scale our applications as well as their digital capabilities across the globe, not only just here in HO and in India, but also across all the subsidiaries and that that would give us that level of confidence to meet the business priorities and the agenda’s that Indranil and Dr. Jay talked about along with Anwar.

Yup, we also been focused on how we improve our risk and compliance and there's some capabilities that we are also building for future, we've been investing in past and we will continue to invest some of the exciting capabilities for future.

Everybody’s talking about AI.

Everybody's talking about data.

The investments will start towards that as well.

But as I said.

Our priorities are threefold.

Stabilize the core, digitize our functions, and then build the capabilities for future.

In terms of the digital business models, that's how we're intending to progress more to come in this space.

First few steps, but very excited to be here.

Thank you.

Connect ask Mitesh to come up.

NITESH JAIN (CHRO)

I thought am I audible?

HI so my name is Nitesh and I lead the HR for the firm.

Very warm.

Welcome to all of you and happy to present before you.

So I think you know I'll be presenting just one slide and basically it's all about how we are thinking and really making how we manage talent as a way of life for us right now you all have seen there are various new leaders presenting here, right and that’s the intention that next time the new set of leaders should be nurtured and come from within the organization.

Rather than for us to go out and hire from, right?

So with that intent it's, you know, we started this journey roughly around two and a half , three years back, right?

And intensive work was done in terms of really reaching out to employees leadership to understand, you know, what are the competencies which are required for us as a leaders and employees to be successful in this organization and hence complete competency framework, leadership competency framework were designed.

Each and every employee in India was trained around that and also you know a development centre .We did a development centre, you know, so competency model states that, OK, this is what is expected right now to really understand each one of us, where are we, you know from that ideal state, right?

So that exercise was done.

We hired a, you know, an external partner who helped us in this, you know, gap analysis and we almost covered around roughly around 250 odd employees.

In this right, starting from a mid to sort of a senior management right now this entire work was done which led to basically, a few things right?

This analysis gave us the potential basically right, because leadership behaviour is all about potential, right?

How anyone can behave and work in a uncharted territory?

And you know, can adapt and deliver results, right?

So this gave us the potential assessment score.

We already have the performance score of an individual working with us and using that data we really worked on the NINEBOX classification for the employees, right?

Simple tool, but just a talent segmentation exercise for us to really understand.

How does a talent landscape for the firm looks like?

Right out of this entire development centre, there were lot of learnings for us, right?

We realized that there are couple of capability issues which we can really go blanket out in the organization as a capability and impart trainings through some workshop and some design methodology for all our employees, right.

So couple of things which we entertained was you know, how do we really emphasize on managerial capability, right fundamental of really looking at the, you know, talent landscape, how do we make our managers more effective, right?

Right.

Second thing was how really we imbibe that each one of us working in the firm irrespective of the department function, we are really thinking business.

Do we have that bent of mind?

Right.

So these couple of things were identified where we went all out in terms of how do we ensure all the employees are covered through these sort of programs and capability development.

Since we have done the development centre for each and every employees almost 250 all employees, there's a individual development plan for each one of us who went through the development centres right now many often we have seen that you know, IDP’s are created and you know during the time you know, you never know what happens to that Is there any rigor or needle moving, not moving?

Right.

So what we said that we have set up a process which we have termed as development Sprint.

Now this process enable us that every year, twice a year, at a certain, you know time, each employee come and present to a development Council about their progress made on their IDP’s.

Is there any challenges concerned along with their managers this this dialogue happens right?

The idea is really to enable, right?

How can we enable any support from leadership?

Everything can be, you know, given and the dialogue really is to see that whether the needle is shifting or not.

Now this is from the employee lens.

Now from a roll lens, right We also really looked at which are my key roles, which I cannot afford to be vacant, right?

Are really important of strategic important for the firm right.

We looked at also that who are my people internally who can be on the succession chart for these key roles Yeah.

Now this is one thing that I, you know, as an organization we said OK individual A can be targeted for this role.

Now the next question is individual A really wanting to get in that role right?

So there is a aspiration, career aspiration, link of that individual.

So with the dialogue, with dialogue, with almost all the people who have been identified as successors and are on our succession chart to really understand and close the loop with them, are they really aspiring?

How we are thinking, right and basis that right we there is a.

Succession development plan.

Now this is where the rubber hits the road, right?

Which we say as part of lot of talent management exercise that certain individual will be ready for a certain role.

In X number of years.

Right now we went back and said, OK, if we require four years, what exactly this four years will look like for that individual, for the targeted role, right?

Because until unless we have that clear signed off process, you know we can meet 2 years down the line the status remains the same, right?

So we did this exercise.

We are in a process of, you know, making this also a review mechanism to really enabling that things really move as per the plan.

Right.

And at the end of the day, all these things will culminate in a in a talent review discussions where as a leadership for the firm, we sit and take stock of the talent agenda, various initiatives, what results they are you know whether we are reaping the results.

Or not any supports are required.

Any course correction.

See the idea is to really make talent as a way of life.

The way we discuss numbers, we need to discuss and dialogue and have a conversation around talent Right.

So that's the intent.

And this, you know, this year we have largely covered all employees in India and you know ATS as a unit and ELGI sort of unit I think we are in a process of rolling this out to our across the locations globally, right?

And you know, next financial year, I think that's the target of really covering all our employees within this framework.

Thank you.

BHEEM SINGH MELCHISEDEC (DIRECTOR – OPERATION): Good evening to all.

I’m Bheem Singh, director of operations.

I think you are all excited with today's presentations, particularly the innovative presentation like our stabilizer and Tier 4 compressors.

And I'm also equally excited to present to pivotal initiatives.

We have launched this year.

When is ask Dr. JV mentioned the ELGI motor expansion.

This is actually a multi-faceted development.

It’s not just, you know, capacity expansion it is It includes the cutting-edge technology and number of variants, products and also the, you know, the capacity expansion.

There are three dimensions to that this PMSM motor we added to ours.

Product profile and in addition to already proven induction motor technology and we are expanding to now 160 kilowatts.

At present, we are 2.2 kilowatt to 45 kilowatt.

Now we are expanding to full range and as I mentioned, this number of variants increase will help the customers for the evolving need of the customers.

And as Dr. Jairam mentioned in his speech.

This development will insulate our company from all the supply chain risk due to any geopolitical issues as we are witnessing now and apart from that, there will be a steep reduction of inventory and steep production of lead time and makeover operations, more agile and responsive.

Right.

And second is this MK2-MK2 is Mission -K2.

And our aspiration is CK2, one of the top three players in the world in the compressor field.

And this mission is to help to reach the K2 CK2 and again doctor JV mentioned about it.

This is not just investment in creating a world class manufacturing facilities this is also our commitment to sustainability, so as you can see, 38% space is alerted for green build development.

It is a very green plant and overall the as Doctor JV mentioned, the entire phase we are going to invest around 590 crores 696 crores for five years.

Next five years and we are going to build 743,000 square feet.

Right.

And the phase one we are going to build 280 thousand square feet with the investment of 2547 million INR.

This is a first phase .This is the layout GSC layout.

This is a global support centre layout.

And this is a building and this is a layout this a U shaped layout for better efficiency and effectiveness.

And this completely automated plant with the case certain robot conveyor and AGV’s with a less number of people inside and this is a portable business, portable plant ADP SAG plant.

And this again closed loop.

You know plant with for maximum efficiency and effectiveness.

Overall, GSC 147,000 square feet.

We are going to build in the investment of 1440 million INR and portable building with 131,000 square feet with the investment of 1107 billion INR.

And here again the focus is on the automation and productivity improvement close to 50% productivity improvement we are expecting in this plant also.

It's all from, I said.

I invite Ramesh.

RAMESH PONNUSWAMI (EXECUTIVE DIRECTOR)

Thank you Prem .Good afternoon, ladies and gentlemen.

I’m Ramesh.

I look after our companies purpose.

I champion the purpose, business systems, ESG and a significant part of the ESG is CSR.

So I'll take you through.

I know you've held together very well for the last 90 slides.

I have a few more to go and hopefully I'll be quick.

So to start with, let me talk about CSR bulk of our profits, or rather the share of the profits that go into our CSR activity is invested in education.

The ELGI school is about 35 years old.

Now it's in a brand new campus.

It’s about four years old.

Next time, if you are in Coimbatore, we have some time about an hour to spare.

Please let me know.

I'd be more than happy to take you to our school and show you around and see what we are up.

There’s some exciting stuff that we are doing.

As part of our school, there's about 1332 students studying right now it's CBSE school from pre- kg to 12th Standard English medium.

And we have a fantastic track record in terms of academic performance for the last few years, we've had 100% pass rate in both board exams, the 10th and the 12th with an average score of about 85%.We want to take it to the next level.

That is something that I will talk to you about.

Giving back to society by developing good citizens through holistic education at low cost.

We’re running the school not with a profit motive, but doing good and doing, you know, very good in terms of what academic output.

So we already have about 100 students whom we are supporting through scholarships.

It’s fee free and I'm also pleased to share that there's about 14 children who are from an orphanage nearby.

Whom we support one of the girls who has passed out of 12th standard last year came from the orphanage.

Her journey was from LKG to 12th Standard.

She was the Topper in the district, and she is.

You know that's part of the trigger for us to go to Segway for us and for me to talk about the project that we are off to.

This is project seller very exciting project for us.

This is a future journey for our school.

We want to focus on bringing.

To our school identifying natively.

Brilliant but underprivileged children financially not able to afford quality education.

They are in government school’s corporation, schools right now, probably in Tamil medium We want to identify them, bring them to our school.

Put them through a holistic program focused on academic excellence, but also creating good citizens out of them allrounders in whether it's music, sports, whatever we want to give them those kind of pathway and We will screen them from at six, 5th pass.

That’s the only time that the earliest that we can catch them and screen them and test for intelligence.

So we are starting this year in June with our first batch.

We’ve already identified 1000 potential students and we have applications from at least half of them.

We have our entrance test in the 16th of March.

The process is well underway.

We’re confident we'll get at least 25 students in the first batch and the only measure of success for us that we've set ourselves is every student who's passing out through this program will get admitted or offers of admission from the top schools in India.

Whichever program they choose.

It need not be engineering or medicine the typical programs that you hear, but it can be arts, it can be finance, it can be IPS, IAS you know, a law, whichever.

Right.

So we will support them through Career guidance, counselling and various, you know, competitive exam preparation facility also.

So it's 100% free education.

We are going to build a residential facility.

We've already started the planning process in two to three years time.

It will be 100% residential, completely free.

This is the easy part.

Finding the students and bringing them.

How do you deliver the excellence you know in terms of the delivery of the curriculum, the quality of the teachers is absolutely critical.

So investing a lot in the back end of the school as well.

So 15 to one student and teacher ratio right now, we have about 30 kids in a class.

We will drop it down to about 25 to maximize impact on contact .So it's a very exciting journey.10 years from now, steady state.

Our school will only be from 6th standard to 12 standard.

We are progressively shutting down after 5th standard.

The entire school will only be these stellar students, so we expect about 900 students all studying free, all academically excellent.

So our aspiration is to be the best school, full stop.

So the next CSR activity that involved in, not just in school VR, supporting healthcare, various cancer organizations, Cancer Research, and foundations that we support for paediatric and adult cancers as well.

But the other exciting thing I want to share with you is our support for the Olympic gold quest.

Now this is a organization that was started by Geet Sethi and Prakash Padukone in 2001.The main aim is to increase the number of medals and hopefully most of them gold medals at the Olympics from India.

So in the recently concluded, just to give you a flavour in the recently concluded Paris Summer Olympics, there were six medals that India won, one of them.

Was for hockey, as most of us know, five were individual medals.

Four of them were supported by OGQ, the Paralympics did much better India got 27 medals.

If I'm right and 25 of them were supported by OGQ.

Out of that, there were 6 gold medals and 5 of them were from OGQ.

So that's the sort of credibility fantastic world class training infrastructure support for promising athletes.

So, they catch them young and support through the journey, they harness their potential.

So we're very excited and now we made a multiyear commitment up to the next Olympic Games going out to LA in three, 3- 3 1/2 years time.

So, this about OGQ.

The other exciting thing is You know, our aspiration is CK2.That is, conquer K2, the second tallest mountain and the most toughest 1 to climb Kamya is a young Mountaineer She's 16 years old.

When she came on our radar, she is the youngest Indian to climb Mount Everest, the second youngest girl in the world to Mount Everest to climb Mount Everest and the youngest in the world in any gender to climb seven peaks and seven continents.

So, she completed that feat.

Earlier in in the year, so absolutely fantastic talent we are very proud of supporting her.

So these are the kind of causes that we, you know, try and do our best to support causes that are aligned with our purpose and have very high impact.

So moving on to what we are doing internally, you know we ran the 6th edition of what's Your Finish Line challenge?

So there's about 1000 plus people participating our employees and our distributor partners, all of them.

It’s a one-week intensive fitness challenge that ran in December, so we had a very good response and participation for that ELGI’s been supporting the Coimbatore marathon since the last 12 years.

All editions the 1st edition was in 2013 ELGI this the entire proceeds go to the Cancer Foundation in Coimbatore and we've had about over the years a record part of the participation we are in the top three in terms of attendance.

Usually we are number 1 or number 2, so this year we had about 1700 plus employees and their families participating in the marathon.

So there's a second largest event in Tamil Nadu outside of Chennai is the largest.

So a roundup of key events during the year, a few of them.

You've heard from other speakers, one of the key things I want to share with you is for the very first time, we're increasingly global, as Jay said, we have about 400 employees outside, so we, had our global leadership meet this year in last year, rather in October in Coimbatore.

So, where we it's over a 2 day period we discussed deliberated Strategic plans.

The how part of you know, making it happen.

Various other discussions.

There's about seventy of us across different hierarchies from various geographies, and we intend to kind make this an annual affair.

We will continue to organize this and as Prem was talking about and this product is a very exciting product that we launched in the BAUMA Con Expo, BAUMA is an international.

Exhibition originating in Germany.

They had a presence in India as well.

State of the future art is a showcase event where 15th December every year we will have a technology day.

It’s a very multipronged in terms of participation.

We have academia, industry specialists, experts from various fields coming and talking to a team, presentations on technology and other innovations that that we do Within ELGI So this is something that we have had for about seven years in a row now a part from this, our employees are involved in various Community activities, various activities that drive overall engagement within the business, so.

With that, I'd like to wrap up the flow of the presentations now.

I think it's the next part which is a open for Q&A.

Project is on the way.