Elofic Industries Ltd., specialising in automotive lubricants and filters, is looking at making rapid strides in the off-highway vehicle applications. The Faridabad-based company, which currently manufactures oil, air, hydraulic and fuel filters, in addition to lubricants, greases, coolants and gaskets for all automotive applications, recently introduced some products for industrial, earth-moving and construction equipment segments at bauma Con Expo 2014. Having grown at a CAGR of 20 per cent over the last few years, the company has now set an ambitious target of crossing a topline of Rs. 500 crores by 2017 from Rs. 250 crores clocked in the preceding fiscal. Out of the projected turnover, nearly 10 per cent will be derived from the afore-mentioned off-highway vehicle segments.
“We are now spreading our wings by maximising our presence in the two-wheeler market, as well as foraying into the off-the-road vehicle market. Recently, we have entered the earthmoving and construction segments by unveiling our filters and lubes specifically for them. We have spent around Rs. 40 crores for setting up manufacturing facilities to serve the needs of this segment. We will be aiming for a Rs. 100 crores turnover with this vertical in the next three year through a network of 50 distributors across the country. We shall also be focussing OE segment parallelly,” said Mr. Pawan Sharma, Vice President, Domestic Sales, Elofic Industries Ltd.
Talking about its presence in the CV segment, Mr. Sharma said, “for the last few years, we have been sharpening our focus on the CV industry wherein we are witnessing a sustained growth.”
Elofic has kept itself abreast of the emerging technologies and current market trends to provide customised solutions for all automobile and industrial requirements. While OEMs and aftermarket constitute 30 per cent and 40 per cent respectively of its total sales, the balance 30 per cent is generated from exports. It is the preferred vendor for all leading Indian OEMs, including Tata Motors, Maruti Suzuki, Mahindra & Mahindra, etc. It also exports its products to the US, the UK, the Middle and Far East and SAARC countries, both for direct market and aftermarket. It has a wholly-owned subsidiary, Elofic USA LLC in Wisconsin, to cater to the American market.
Meanwhile, Elofic is churning out 80 kl of lubricants per month for serving all segments of the automotive industry. “We have a capacity 400 kl per month expandable to 800 kl per month,” said Mr. Sharma.
Floated in 1951 by Mr. M.S. Sahni, the auto component major has 14 marketing offices, supported by a network of about 1,000 distributors and 30,000 retailers spread across the country. Elofic has been a pioneer in the quality movement, beginning with the ISO: 9002 certification in 1995. It now has the TS 16949:2002 certificate for manufacturing and the ISO: 9001 certificate for all its marketing offices.
Mr. Sharma further highlighted: “We have a very deep reach. Going forward, we will get into a consolidation mode. We will be having a dedicated network for two wheelers, four-wheelers, and industrial segments. Once those are in place, our network will attain an overall strength of 1,500 distributors.”
At present, Elofic rolls out its products from its five manufacturing facilities, with three at Faridabad near New Delhi; one each at Nalagarh in Himachal Pradesh and Hosur near Bangalore. The company has a capacity to produce nearly 70 million units of filters suitable for automotive, agricultural, industrial and earthmoving applications. It is now gearing up to set up its sixth plant on a 20-acre site near Mehsana district in Gujarat where Maruti Suzuki is already setting up shop.
“We will be serving numerous OEMs setting up their greenfield facilities there. We are also planning to export from here since it is close to the Mundra port,” revealed Mr. Sharma.
Spelling out the long-term vision of the company, he concluded by saying, “we are consolidating ourselves as a global leader in filtration solutions.”