Elofic Industries seeks European acquisitions
Elofic Industries has set an ambitious target of boosting its top line or gross sales from INR220 crore to INR350 crore in the 2015-2016 Fiscal Year. Over the next few years, its target is to reach INR500 crore.
A filter manufacturer based in Faridabad, Haryana, India, Elofic produces more than 42 million filters annually for oil, air, fuel and hydraulic applications. The company also entered the lubricant business a few years ago. It now plans to enter other segments of the filtration market, namely two-wheelers, off-highway and construction equipment.
K.D. Sanhi, joint managing director, shared that “in two-wheelers, we have finalised orders with Suzuki for whom supplies have already started; Yamaha’s is in the final stages of negotiation besides which we are working on new projects for Royal Enfield and are in discussions with other manufacturers as well for their new models.”
Looking forward, Elofic will focus on growing its filtration and lubricant businesses and looking for acquisitions in Europe, so it can grow its overseas customer base as well as product portfolio. It is in the beginning stages of talks with prospective companies.
Domestically, Elofic is also expanding its manufacturing base by building a plant in Gujarat. The region is seen as the next automotive hub in India. The company is in the process of acquiring 40 acres of land, and over the next three years, will be investing INR120 crore in setting up its lubricant and filtration businesses there. Construction will begin this year. Annual production capacity at the new plant will be 72 million units in five years. Initially, however, production capacity will be 24 million units per year. The company’s lube blending plant in Faridabad will also move to Gujarat.
Sanhi said that Elofic plans to export filtration products from the Gujarat plant to OEMs and other filter manufacturers in Europe, the United States, New Zealand and the Far East. Elofic derives about 40% of its total revenues from exports.