1992 Joining forces

In 1991, Elco, which was owned by the Zelkind Family, bought a controlling interest in Electra from Clal Industries. The merger between the two companies was a great success and resulted in, yet another, leap forward for Electra.

In 1991, Elco, which was owned by the Zelkind Family, bought a controlling interest in Electra from Clal Industries. The merger between the two companies was a great success and resulted in, yet another, leap forward for Electra.

Prior to the merger with Electra, Elco had developed a revolutionary wall-mounted air-conditioner. After the merger, they shared their knowledge with Electra’s engineers, and the first co-produced wall-mounted, remote-controlled air-conditioner was soon ready for manufacture. This joint project introduced profound innovation and changed the way Israeli’s perceived air-conditioners.

The transition from floor units to wall-mounted, wasn’t an easy one. The Israeli market found it hard let their floor air-conditioners go, and a marketing battle between the two units soon broke out. Electra was selling both types at the same time, but in an effort to promote its new model, launched an advertising campaign which focused on the advantages of the wall-mounted units. The campaign presented the new unit as a white, highly aesthetic air-conditioner, which blends in with the wall, doesn’t take up floor space, and pushes cool air down into the room, rather than straight into people’s backs, like the floor air-conditioners did.

Gershon Zelkind’s bold decision to buy Electra proved to be a good one. It showed that a merger between two companies, between managers and engineers, would result in significant profits for years to come.