Enhancing the power of equipment renting with reliable air compressors

The power equipment rental business has very exacting standards. It demands 100% reliable air compressors and impeccable after-sales service. We demonstrate how ELGi is catering to this need and helping its customers grow their business at a faster pace.

Executive Summary

When a leading India-based power equipment rental company, Modern Energy Rental, discovered a considerable demand for compressed air in the construction and mining industry, it reached out to ELGi. The company has procured hundreds of exceptionally reliable air compressors to date, which has helped it grow its rental customer base across new industries.

Overview of the Industry

Construction and Mining activities form the backbone of all industries and contribute significantly to a country’s economy. However, they are prone to fluctuations due to the frequent rise and dip in demand, geopolitics, and, more recently, the impact of the ongoing pandemic. That said, sustained efforts by countries and their economic boosters ensure a steady need for machinery. According to credit rating agency ICRA,  the Mining and Construction Equipment industry is forecast to grow by 15-20% in 2021.

Though the projected growth applies primarily to manufacturers in the segment, indirect demand can drive the growth of auxiliary equipment providers as well.

The Construction and Mining industry, being labour intensive and equipment-driven, requires extremely reliable machinery which can work in harsh, demanding environments. Due to the heavy capital investment requirement, changing nature and demand for machinery, dynamic market conditions, and high need for proactive maintenance, many industry players prefer hiring or leasing equipment over the traditional ownership model.

About the Company

Modern Energy Rental, a leading provider of power and cooling equipment in India, has over 35 years of experience in the segment and more than 500 employees. The company provides a wide range of high-end equipment on rent, including generators, transformers, air conditioners, chillers, compressors, load banks, fuel tanks, etc. The company offers turnkey solutions for both short- and long-term customer needs, catering to different sectors, including construction, mining, oil and gas, and food and beverage.

Operating out of 450 locations, the company has more than 350 customers spread across India, catering to the needs of critical infrastructure development in the country. Specifically, Modern Energy Rental focuses on maintaining leadership in the energy equipment rental space. They achieve this by continuously upgrading their equipment and providing the latest, cutting-edge, ready-to-install equipment – all this while always ensuring high reliability.

Equipment provided by Modern Energy Rental plays a critical role in the operations and overall productivity of their customers, placing a high demand for perfection in the equipment being rented or leased. To achieve this aim, Modern Energy Rental must procure only the best-in-market equipment to rent to their customers. Providing quality after-sales service is also critical to maintaining their market reputation while catering to the stringent and robust customer demand.

Customer Challenge

Modern Energy Rental's construction and mining customers use heavy machinery and frequently operate in remote locations in adverse conditions. The labour-intensive nature of the industry also requires the best equipment and operations safety while ensuring peak productivity. 

Core processes like running ventilation systems, powering critical on-site pneumatic tools, lifting and handling operations, site cleaning and digging, and heavy-duty blasting require a steady, uninterrupted flow of compressed air. Operations will come to a standstill if these conditions are not met. Thus, it is imperative to provide 100% reliable air compressors as an operations and safety requirement to ensure high uptime and productivity.

Business Solution

Modern Energy Rental initially approached ELGi to procure two air compressors (ELGi PG600-230 and PG450-150) in 2018. However, as customer demand for compressed air increased, the company decided to procure hundreds of additional air compressors from ELGi over the next three years.

The exponential increase in procurement was also because ELGi provided immediate fulfillment and on-time service to Modern Energy Rental. ELGi air compressors helped the team at Modern Energy Rental satisfy compressed air demands at customer facilities while also ensuring technical and industrial compliance at application sites.

While Modern Energy Rental was pleased with the initial equipment and service quality of ELGi, this resulted in them acquiring the complete range of ELGi portable air compressors (both diesel and electric models) from 300 CFM to 1100 CFM free air delivery capacities. ELGi has also supplied two oil-free ELGi OF 275 screw air compressors for deployment at two customer sites in the food and beverages and oil and gas segments.

Business Benefits

The prompt and quick support being provided by ELGi whether for new equipment procurement or on-site maintenance at end-consumer sites across India, enabled Modern Energy Rental to satisfy its customer expectations. Here are some key benefits of choosing ELGi:

Increased Customer Demand: The reliable performance of ELGi air compressors at end-consumer sites led to more orders for air compressor rentals

Better Customer Satisfaction and Equipment reliability: With rented air compressors, Modern Energy Rental ensures higher uptime and a significant reduction in downtime for its customers

Business Growth: Due to its successful venture into the air compressor rental business in the construction and mining sectors, the company is now exploring renting out to the oil and gas, pharmaceuticals, general engineering, and food and beverage industries. The company also aims to offer oil-free air compressors to its customers.


“The rental industry is very promising and will boom once the pandemic is over. I’m confident that with ELGi’s technologically superior compressed air systems, along with our strong relationship with the ELGi team, we will be able to cater to the needs of our customers across various segments in the next few years. My mind is at peace as ELGi’s service team proactively takes care of our products at customer sites. I don’t worry about the service or downtime at all. By partnering with ELGi, I have taken the best decision at the right time,” said Raees Malim, Managing Director, Modern Energy Rental.

Ensuring a customer’s success determines its own. ELGi realises this key fact and strives to provide the best equipment in the market. Right from procurement to after-sales service, ELGi prides itself on partnering with customers to ensure maximum productivity and reliability.