Elgi Equipments inks technical agreement with Italy-based DVP Vacuum Technology

Elgi Equipments said that it has signed a technical licensing agreement with D.V.P. Vacuum Technology S.P.A., Italy, to acquire the know-how, technical information and assistance to assemble, manufacture and sell 'vacuum products' in India.

For geographies other than India, DVP and company will discuss the manner and method of engaging with each other.

DVP has provided the company with an exclusive, non-transferable right to the Company to manufacture and sell the Vacuum Products in India.

Vacuum Products comprise of oil-free and oil-lubricated rotary vane type vacuum pumps with possibility to add other types in due course, with mutual consent.

The company would pay DVP a lumpsum fee towards transfer of technical information and training. Further, a royalty will be paid to DVP for usage of DVPs patents, other industrial and intellectual property rights and technical information, as per the terms and conditions mentioned in the agreement.

 

The term of the agreement shall be maximum period of eight years from the effective date of the agreement. The collaboration gives us the opportunity to expand our offering to include vacuum products, Elgi Equipments stated in an exchange filing.

Elgi Equipments is engaged in manufacturing of air compressors.

The company has reported 4.77% rise in consolidated net profit to Rs 83.88 crore on a 6.39% increase in sales to Rs 821.83 crore in Q3 FY24 over Q3 FY23.

The scrip shed 0.89% to currently trade at Rs 643 on the BSE.

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