Energy Profile: Coimbatore Compressor Cluster

ENERGY PROFILE

COIMBATORE
COMPRESSOR
CLUSTER

i
ENERGY PROFILE

COIMBATORE
COMPRESSOR
CLUSTER
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Original work of TERI done under the project “Advancing Energy Efficiency in the Micro, Small and Medium
Enterprise (MSME) sector in India”.

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Suggested format for citation

TERI. 2018
Energy Profile: Coimbatore Compressor Cluster
New Delhi: The Energy and Resources Institute; 24pp.
[Project Report No. 2017IE03]

Disclaimer
This document is an output of a research exercise undertaken by TERI supported by The Shakti Sustainable Energy
Foundation (SSEF) for the benefit of MSME sector. While every effort has been made to avoid any mistakes or
omissions, TERI and SSEF would not be in any way liable to any persons/organizations by reason of any mistake/
omission in the publication.

The views/analysis expressed in this report/document do not necessarily reflect the views of SSEF. The Foundation
also does not guarantee the accuracy of any data included in this publication nor does it accept any responsibility
for the consequences of its use.

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 Contents
ABBREVIATIONS

ACKNOWLEDGEMENTS

COIMBATORE COMPRESSOR CLUSTER

Overview of the cluster..............................................................................................................1

Products, market a and production capacities.......................................................................1

Product categories......................................................................................................................3

Production process.....................................................................................................................3

Technologies employed..............................................................................................................4

Energy scenario in the cluster...................................................................................................6

Energy consumption..................................................................................................................6

Potential energy efficient technologies....................................................................................8

Major cluster actors and cluster development activities......................................................13

 Abbreviations
Abbreviation Full form
CFM Cubic Feet per Minute
CNC Computer Numerical Control
COCIA Coimbatore Compressor Industries Association
DI Development Institute
DIC District Industries Centre
GHG Greenhouse Gas
HT High Tension
kVA kilo volt ampere
kW kilo watt
kWh kilowatt-hour
LT Low Tension
MSME Micro, Small and Medium Enterprises
PLC Programmable Logic Controller
pmsm Permanent Magnet Syncronous Motors
SEC Specific Energy Consumption
SSEF Shakti Sustainable Energy Foundation
t tonne
TANGENDCO Tamil Nadu Generation and Distribution Company Limited
toe tonne of oil equivalent
tpd tonne per day
tph tonne per hour
VFD Variable Frequency Drive
 Acknowledgements
Shakti Sustainable Energy Foundation (SSEF) works to strengthen India’s energy security by aiding the design and
implementation of policies that support renewable energy, energy efficiency and sustainable transport solutions.
TERI places on record its sincere thanks to SSEF for supporting the project on Advancing Energy Efficiency in the
Micro, Small, and Medium Enterprise (MSME) sector in India.
TERI team is indebted to Coimbatore Compressor Industries Association (COCIA) for providing support and
information related to air compressors and component units in the Coimbatore cluster. TERI extends its sincere
thanks to Mr M Raveendran President, COCIA for organizing field visits and interactions with unit members
during the study for the preparation of this cluster profile report. TERI would also thank Mrs G Krithiha and Mr
Devendran for sharing information on the process of manufacturing air compressors.
Last but not least, our sincere thanks to MSME entrepreneurs and other key stakeholders in the cluster for
providing valuable data and inputs that helped in the cluster analysis.
 Energy Profile: Coimbatore Compressor Cluster

Coimbatore Compressor Cluster

Overview of the cluster
Coimbatore, located in the state of Tamil Nadu, is an important industrial cluster in India. Coimbatore is a well-
known hub of small-scale-engineering industry. There are an estimated 50,000 MSMEs in Coimbatore. The
industries are spread within Coimbatore and neighbouring industrial estates. The engineering industry is diverse
in nature. Some of the major engineering segments
include foundries, pumpsets and reciprocating air
compressors, forgings, auto components, and diesel
engines.
Coimbatore is one of the largest producers of
conventional reciprocating compressors in India. The
manufacture of air compressor components started
in the cluster in the 1960s when some units started
supplying ancillaries to ELGi Equipments. EFCO was
the first company to start manufacture of entire air
compressors in the small scale sector in Coimbatore.
At present, there are about 300 manufacturers of Location of Coimbatore (Source: Google Map)

reciprocating compressors and allied components.

The major concentration of compressor industries
in Coimbatore units are in Peelamedu and Pappanaickenpalayam. Most of the small-scale units manufacture
compressors’ upto 5 hp capacity, while the medium-scale units make produce compressors upto 20 hp.

Products, market, and

production capacities
A large number of castings, forgings, and engineering Compressor
components are used in the manufacturing of air manufacturing
units, 33%
compressors. Some of the major components include
foundation plates, engine cases, pistons, air receivers, Components
sheet metal components, and connecting rods. manufacturing
units, 67%
The compressors manufactured in the cluster are
used in bore well pumps, automobile garages, paint
shops, railways, paper cup manufacturing machines, Types of units in the cluster
blow moulding machines, packaging units, dairy
units, and several small industries. Two major types of units, those manufacturing the air compressors and those
manufacturing air compressor components, can be found in the cluster as given in the following table.

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 Energy Profile: Coimbatore Compressor Cluster

Categorization of units
Category Number of units

Air compressor manufacturers 100

Compressor components manufacturers 200

Total 300

The air compressor manufacturers can be categorized further based on their production as shown in the following table.

Categorization of air compressor manufacturing units

Category No. of units Production, Total production, Annual production,
compressors/month compressors/month compressors/yr (nos.)
(nos.) (nos.)
Medium 10 250 2,500 30,000
Small 60 30 1,800 21,600
Micro 30 15 450 5,400
Total 100 295 4,750 57,000

The air compressor component manufacturers can be categorized further as has been shown in the following table.

Categorization of air compressor components manufacturing units

Category No. of units Production Total production, Annual production,
(tonne/month) (tonne/month) tonnes
Small 100 180 18,000 216,000
Micro 100 60 6,000 72,000
Total 200 240 24,000 288,000

The cast and forged components required by the compressor manufacturers are sourced from foundries and forging
industries. The linkaged between air compressor
manufacturing industries and the associated
industries are shown in the given figure.
All manufacturers in the cluster are engaged in Casng/forging Air compressor Other component
the production of conventional reciprocating air manufacturers manufacturers manufacturers

compressors. None of the MSME industries are

manufacturing screw air compressors, which is the
latest technology. Linkages of air compressor manufacturers

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 Energy Profile: Coimbatore Compressor Cluster

Product categories
Reciprocating air compressors ranging from 0.75 hp to 20 hp are produced in the cluster. A wide range of
components for the air compressors, such as connecting rods, receivers, and so on are also manufactured in the cluster.

Reciprocating air compressors and components

Production process
The manufacturing of air compressors encompass a number of steps starting with production planning based on
customer requirements and design and the development of the product to raw material procurement (castings
and accessories), machining of components, painting sub-assembly and assembly, inspection and testing, packing,
and dispatching. The major process steps followed are summarized below. A simplified process flow diagram of a
typical compressor manufacturing unit is given in the following section.

Assessment of customer requirements

Based on detailed discussions with customers, information such as specifications and capacity are prepared and
forwarded to-the design and development department in medium-sized units. Most of the micro-and small-sized units
directly manufacture standard air compressors based on designs which, through years experience they have developed.

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 Energy Profile: Coimbatore Compressor Cluster

Design and development

Based on demand, standard air compressor designs are used or design customization/ modification is done to suit
the specific customer requirements. A bill of material is prepared as per the design.

Raw material procurement

Raw material cost accounts for about 60–80% of the total production cost of air the compressors. The major raw
materials include cast components, such as engine case, forged components such as connecting rods, sheet metal
components such as receivers and other materials such as bearings, shafts, belts, fasteners, motors, starter control
panels and so on. Most of the raw materials are procured from the external suppliers and vendors.

Machining and heat treatment Raw material

procurement
Machining of castings and other parts, such as shafts, bushes, and pulleys are
outsourced. Finishing the operation of critical components is done in-house
to ensure accuracy and close tolerance. Some of the components require heat Machining
treatment, such as like normalizing, hardening, and stress relieving. Heat treatment
is also outsourced as these units do not have the facility in-house.
Drilling/tapping
Painting, sub-assembly, and assembly
After the machining of the components, painting is done using spray guns. Sub-
assembly of the metal components is done separately. Once all the components Milling
are assembled and electrical components such as motor, starter control panel, and
proper cabling and complete lubrication systems have been fitted, the compressor is
ready for inspection and testing. Surface grinding
and honing

Inspection and testing

Assembly
Inspection of the ‘fully assembled’ machine is done to ensure quality. Testing of the
machine is carried out as per the standards. In-house tests such as free air delivery
and receiver leakage are carried out before final dispatch of the machines. Checks
are also carried out on the outsourced machining jobs to check their precision Tesng
and accuracy.

Packing and despatch Packing and dispatch

The inspected and tested machine is packed and sent for dispatch. Component
Typical manufacturing process
manufacturing industries carry out usual machining jobs like honing, grinding, of Air Compressors
drilling, chemical testing and painting. These components are sourced by the
compressor manufacturing units.

Technologies employed
Some of the major processes/equipment used in the compressor manufacturing units are described below.

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 Energy Profile: Coimbatore Compressor Cluster

Conventional machining
Conventional machines are used by compressor units as well as components manufacturing units.
The common conventional machines include lathe, milling, shaping, planning, grinding, and drilling machines.
These machines are used for rough as well as finish machining of components, such as engine cases, shafts, key
ways, pulleys, saddles, etc.

Conventional machines

CNC machining
Some component manufacturing units use Computer Numerical Control (CNC)
machines. CNC machines help to reduce costs and improve the quality and productivity.
CNC comes in different orientations - horizontal and vertical. The selection and use
of CNC is based on the type of applications.
CNC Machine

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 Energy Profile: Coimbatore Compressor Cluster

Manual assembly
Most units in the cluster adopt the manual assembly process. The assembly work is
modified depending on the machine and customization requirements. In some cases,
electronic components such as PLC and CNC panels are added. The duration of
assembly depends upon on the type of machine and nature of customization.

Ovens Manual assembly

Ovens are used after spray painting components for solidifying the paint applied. Batch
type LPG or diesel-fired ovens are commonly used. Some units have electric resistance-based ovens. Batch time is
around 45–60 minutes. The capacity of these ovens range from 500 kg to 5 tonne per batch.

Energy scenario in the cluster

Electricity is the major source of energy used in the cluster. Small quantities of LPG and
diesel are also used. Electricity is supplied by Tamil Nadu Generation and Distribution
Company Limited (TANGENDCO). Diesel is used in ovens and as well as in DG sets
to generate electricity during unscheduled power outage. Diesel is procured from
the local market. As power outage is minimal in the cluster, diesel consumption in
DG sets is insignificant. The details of the major energy sources and their tariffs are
Oven
given in table.

Prices of major energy sources

Source Remarks Price
Electricity TANGENDCO Rs 7.5 per kWh (inclusive of energy, demand charges, other penalty/rebate
and electricity duty)
Diesel From local market Rs 69 per litre (price subjected to market fluctuations)
LPG BPCL, HPCL, IOCL Rs. 55 /kg (price subjected to market fluctuations)

Energy consumption
Unit level consumption
Electricity is used to run all machinery. Most of the units in
Micro units 23%
the cluster have LT connections. HT connections, the power is
supplied at 11 kV and is stepped down to 433 V using a common Small units 77%
transformer of TANGENDCO and fed to the respective power
distribution board (PDB) through an LT switchgear located at
the main distribution. Diesel is mainly used in DG sets which are
operated in the case of unscheduled power outages.
Share of energy consumption in
The major energy-consuming areas in compressor manufacturing component-manufacturing units

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 Energy Profile: Coimbatore Compressor Cluster

are motors used in various applications, such as lathe, CNC,

drilling, honing machines, cranes, etc. Machining account for Micro-scale compressor
about 80% of the total energy consumption, followed by welding manufacturers 17%

machines (10%), and air compressors (5–10%). The motor Medium-scale compressor
-driven presses in most units are operated without any control manufacturers 16%

mechanism. The share of energy consumption in air compressor Small-scale compressor

manufacturers 67%
-manufacturing and component manufacturing units are shown
in the figures.
The specific energy consumption (SEC) of the units vary Share of energy consumption
in manufacturing units
considerably depending on the type of products being
manufactured. The typical unit level energy consumption is given in table.

Typical energy consumption at unit level

Type of unit Electricity LPG Diesel Total energy Equivalent Annual

consumption consumption, consumption, toe/year CO2 emission. energy bill,
kWh/year kg/year litres/year tCO2/year Million Rs

Air compressor 28,800 0 0 2.5 23.6 0.2

manufacturing units

Air compressor 26,000 16,364 13,043 33.4 103.4 1.1

components units

Cluster level consumption

The overall energy consumption of the cluster is about 2,255 tonne of oil equivalent (toe) per annum leading to
carbon emissions of 10,730 tonnes of CO2. The overall energy bill of the cluster is estimated to be Rs. 151 million.

Energy consumption of the compressor cluster (2017-18)

Industry Electricity Total LPG Total diesel Total energy Annual

consumption, consumption, consumption, (toe/year) energy bill
kWh/year kg/year litre/year (million Rs)

Air compressor manufacturing units 2,880,000 0 0 247 21.6

Air compressor components units 5,200,000 818,182 652,174 2,008 129

Total 8,080,000 818,182 652,174 2,255 151

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 Energy Profile: Coimbatore Compressor Cluster

Potential-energy-efficient technologies
Some of the major energy-efficient technologies relevant for the air compressor units and component manufacturing
units in the cluster are discussed below.

Energy efficient IE3 standard motors

All the units in the cluster are using lathe machines, honing machines, drilling machines, etc. which use electrical
motors. The rating of the motors vary from 0.5–5 hp depending on the capacity of the machine and the operation
it performs. Most of the motors operate on low loads except during cutting or drilling operations. The power factor
of these motors was observed to be generally lower than 0.85. Energy saving of upto 3% can be achieved by the
replacement of old IE2 motor with IE3 motor, as is shown in the following table. The energy savings can go upto
7% by replacing the old IE1 motors with IE3 motors.
Due to the presence of significant variables and jerk-loading patterns in machines, failure rates of motors are
high. Further, no load losses of these motors are high which increases the overall energy consumption. There is a
lack of awareness about efficiency standards of motors. It was observed that most of the units use low efficiency
standard motors. There is a significant potential for energy savings by replacing low efficiency motors with energy
efficient IE3 motors. Depending on the operation period of the machines, the payback period for EE motors can
vary between 10 months to 2 years.

Cost benefit analysis for IE3 motors

Parameter Unit 3 hp motor 5 hp motor

Power consumption of the existing lathe motor kW/hr 2.4 4.1

Efficiency of the existing motor % 79.7 82.7

Efficiency of an IE3 motor % 85.9 87.8

Power consumption of an IE3 motor kW/hr 2.22 3.86

Annual energy cost savings (12 hr/day 350 days/year) Rs /yr 4,956 6,480

Investment Rs 7,500 12,500

Payback period yr 1.5 1.9

Inverter-based welding machines

Inverter-based power sources allow delivering of more power output from new power electronics technology,
resulting in a better performance-to-size ratio. These models also deliver a smooth operation with greater efficiency
than the conventional welding power sources. Old transformer rectifier-based welding machines have-efficiency
a 67% while inverter-based machines have 87% efficiency with better power factor. Inverter-based welding power
sources offer the following advantages:
• Lightweight and portable

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 Energy Profile: Coimbatore Compressor Cluster

Energy inefficient IE1 motor IE3 motor

• Able to obtain superior stick welding performance with all electrode types
• Multi-process welding output without sacrificing arc performance in any mode
• Quick response to changing arc conditions (e.g., maintains, a steady welding, output)
• Superior control over pulsed welding processes
• Line voltage independent uses a single or a three phase input power and multiple input voltages without any
manual relinking mechanism
• Better power factor (more efficient use of power from the utility)
• Less susceptibility to primary voltage fluctuations

Inverter-based welding power sources can perform high as well as low amperage flux cored, stick, TIG, and MIG
welding. The inverter-based models deliver multi-process welding capabilities, offer faster a arc response, smoother
arc action, and a more consistent bead appearance.

Cost benefit analysis for inverter-based welding machines

Parameter Unit Value

Power consumption of transformer rectifier welding machine (for 160 Amps) kW/hr 4.04

Power consumption of inverter welding machine kW/hr 3.1

Annual energy cost savings (7 hours/day, 350 days/year) Rs/yr 15,200

Investment Rs 20,000

Payback period yr 1.3

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 Energy Profile: Coimbatore Compressor Cluster

Air compressor
Units in the cluster use compressed air for various pneumatic utilities and cleaning purposes. Larger units use screw
compressors whereas smaller units use reciprocating compressors. Screw compressors are designed to operate on
more than 80% load for efficient performance. There is a huge potential for energy saving by adopting VFDs-based
screw air compressors and Permanent Magnet Syncronous Motor (PMSM)-based air compressors having higher
CFM to power ratio. Energy savings can range from 15% to 40% as compared with the existing system.

Reciprocating compressor Screw compressor with VFD

(in smaller units) (in larger units)

Cost benefit of VFD screw air compressor

Parameter Unit Value

Power consumption kW/CFM 0.23

Power consumption of PMSM based screw air compressors kW/CFM 0.15

Annual energy cost savings (5800 hours/year) Rs/yr 2,96,000

Investment required Rs 5,00,000

Simple payback period yr 1.7

Cranes and hoists

Cranes and hoists are used to move heavy parts and components. Cranes and hoists have two motors for horizontal
and vertical movement with rating of 7.5 hp to 75 hp depending on crane capacity. As these motors go under
frequent on/off cycles along with jerk loading, application of Variable Frequency Drive (VFD) in crane operation

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 Energy Profile: Coimbatore Compressor Cluster

may lead to an energy saving of about 15%. VFDs will also facilitate soft starting thereby avoiding jerk starts, which
will further help in increasing motor life.

VFDs installed in cranes and hoists

Cost benefit of VFDs in cranes

Particular Unit Value

Power consumption of conventional hoist motor kW/hr 22

Power consumption of hoist motor with VFD kW/hr 18

Annual energy cost savings (1700 hours/year) Rs/yr 43,200

Investment required Rs 75,000

Payback period yr 1.7

Lighting
T-12 tube lights (52W, including choke) and halogen lamps (150W and 250W) are generally used by
compressor- manufacturing units in the cluster. These inefficient lightings can be replaced with energy-efficient
LED lighting (10W and 20W LED tube lights) and flood type and high bay-type induction lamps (20W, 40W and
80 W) which would provide better illumination and energy savings. Since a large number of lamps are used in the
units, the existing lighting may be replaced with EE lighting in a phased manner.

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 Energy Profile: Coimbatore Compressor Cluster

Cost benefit analysis of energy-efficient lighting

Particular Unit Value

Power consumption with 52W T-12 FTLs Watt/hr 52

Power consumption with EE LED tube light of 20W Watt/hr 20

Annual energy cost savings (3600 hours/year) Rs/year 750

Investment required Rs 350

Payback period year 0.5

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 Energy Profile: Coimbatore Compressor Cluster

Ovens
Some of the components manufacturing-units in the cluster use paint ovens. The oven uses LPG or diesel as the
fuel. The operating temperature for the ovens is 200 oC. Usually, the installed furnaces are bigger in size which
end up being under loaded, thus consuming more fuel. Insulation improvement and reducing the heating volume
could result in significant fuel savings.

Use of cogged V-belts

The drive motors generally use flat V-belts. The transmission efficiency of flat V-belts is around 90%–92%. Cogged
V-belts use a trapezoidal cross section to create a wedging action on the pulleys to increase friction and the power
transfer capability of belts. V-belt drives can have a peak efficiency of 95%–98%. They play a dynamic role in
allowing for heat dissipation and better contact with the pulley. There are several other potential benefits of using
cog belts which include (i) less slippage at high torque, (ii) low maintenance and re-tensioning and (iii) suitable
for wet or oily environments.
It is recommended to use cogged V-belt instead of a flat V-belt. The transmission efficiency of a cogged V-belt is
3%–5% higher than a flat belt. Reciprocating compressors using flat V-belts can be replaced with vcogged V-belts.

Flat V-Belt Cogged V-Belt

Major cluster actors and cluster-developmental activities

Industry associations
There are several industry associations in Coimbatore. The major industry association representing the small-scale
compressor manufacturers is the Coimbatore Compressor Industries Association (COCIA). The association has
around 300 members and is involved with activities related to addressing the common issues of industries and
making representations in government platforms.

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 Energy Profile: Coimbatore Compressor Cluster

The District Industries Centre (DIC), Coimbatore, provides several incentives to MSMEs, such as capital
investment subsidy, interest subsidy, venture capital quality, certification, energy and water audits, and so on.
The DIC also promotes, awareness regarding trade information, import export and financial rules and regulations
for the local MSMEs.

Cluster development-activities
There has been no major cluster developmental activities in the Coimbatore compressor cluster.

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About TERI
A dynamic and flexible not-for-profit organization with a global vision and a local focus, TERI (The
Energy and Resources Institute) is deeply committed to every aspect of sustainable development.
From providing environment-friendly solutions to rural energy problems to tackling issues
of global climate change across many continents and advancing solutions to growing urban
transport and air pollution problems, TERI’s activities range from formulating local and national
level strategies to suggesting global solutions to critical energy and environmental issues.

The Industrial Energy Efficiency Division of TERI works closely with both large industries and
energy intensive Micro Small and Medium Enterprises (MSMEs) to improve their energy and
environmental performance.

About SSEF
Shakti Sustainable Energy Foundation established in 2009, is a section-25 not-for-profit
company that works to strengthen the energy security of the country by aiding the design and
implementation of policies that encourage renewable energy, energy efficiency and sustainable
transport solutions. Based on both energy savings and carbon mitigation potential, Shakti focuses
on four broad sectors: Power, Transport, Energy Efficiency and Climate Policy. Shakti act as a
systems integrator, bringing together key stakeholders including government, civil society and
business in strategic ways, to enable clean energy policies in these sectors.

About SAMEEEKSHA
SAMEEEKSHA (Small and Medium Enterprises: Energy Efficiency Knowledge Sharing) is a
collaborative platform set up with the aim of pooling knowledge and synergizing the efforts of
various organizations and institutions - Indian and international, public and private - that are
working towards the development of the MSME sector in India through the promotion and
adoption of clean, energy-efficient technologies and practices. The key partners of SAMEEEKSHA
platform are (1) Swiss Agency for Development and Cooperation (2) Bureau of Energy Efficiency
(3) Ministry of MSME, Government of India (4) Shakti Sustainable Energy Foundation, and
(5) The Energy and Resources Institute.

As part of its activities, SAMEEEKSHA collates energy consumption and related information from
various energy intensive MSME sub-sectors in India. For further details about SAMEEEKSHA,
visit http://www.sameeeksha.org