The heating equipment industry is anticipated to show an upward graph, considering its prime role and application in most of the process industries. HRS Process Systems is a one of the companies in this segment who have registered good growth in the recent years. V Gokul Das, Managing Director, HRS Process Systems talks about his company, its role in the industry, future plans and more, in a discussion with Usha Sharma
Tell us about the journey of HRS PSL from its inception.
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| V Gokul Das |
HRS Process Systems is a part of HRS Group, which operates at the forefront of thermal processing technology. The company established its base in Pune in 2003, beginning with a modest turnover of Rs 24 million, today HRS PSL is a Rs 300 million company. Pioneers in the revolutionary corrugated tube technology for the process industry, we offer innovative technology of international standard for thermal processing like corrugated tube heat exchangers, plate heat exchangers, hot water systems, evaporators, systems for food/fruit/beverage processing with modern pumping and filling technologies. Truly a one stop shop for all heat exchange requirements!
Which industries are you offering your services to and which sectors do you consider more profitable. Why?
HRS caters to a spectrum of industry verticals like organic and inorganic chemicals, petrochemical, pharmaceuticals, agrochemicals, pesticides, fertiliser, steel and allied, power, oil and gas, paper and pulp, effluent treatment, automotive, cement, edible oil, etc. Our range of products for this industry includes ECOFLUX corrugated tube heat exchangers (CTHE), ECOFLUX smooth tube heat exchangers, Plate heat exchangers (PHE), heat exchanger based hot water systems, ASME ‘U’ stamp heat exchangers, condensers, etc. HRS also caters to food/fruit pulp and fruit-based beverages market and offers the innovative UNICUS scraped surface heat exchangers, hygienic piston pump, aseptic fillers and sterilisers, pre-heaters, pasteurisers, evaporators and integrated process lines for food/ fruit/ beverage processing.
Heating equipment industry is definitely anticipated to grow, considering its prime role and application in most process industries. Many new companies are being set up to address the growing demands of various intermediates that make up for a host of consumer durables. With buoyant growth in pharma and allied sectors, demand is going to build up all kind of process equipment. Other sectors growing at a steady pace are chemicals/petrochemicals, edible oil, cement, steel, power etc. Changing lifestyles and standard of living, have enhanced the demand for packaged and processed . Increasing populations and concurrent need for more will boost growth of processing machinery.
What is the importance of heat exchanger in the pharma industry?
In pharma sector, heat exchanger is an important equipment used for recovering organic solvents coming out of reactors in various process. Applications like condensation, cooling, heating etc., is carried out in the heat exchanger. Apart from this, heat exchangers are also used to minimise the solvent losses through storage tanks. Accurately designed heat exchanger will help in reducing solvent losses, improving the overall production and help in smooth operation. Our ECOFLUX CTHE has prime application as primary/secondary condensers, vent condensers, reboilers, sub- coolers and heating and cooling applications. HRS Funke PHE offer versatile heat transfer solutions for various instant hot water applications required for the pharma industry. We also offer CTHE and PHE based hot water systems for AHU, HVAC, FFE, VTD, AFD, reactor heating and such other applications. Our expertise at manufacturing heat exchangers in stainless steel grade and exotic materials like C276, C22, titanium and various other materials, give us an edge in this industry.
How large is the heat exchanger business market in India and how fast is it growing?
Heat exchangers are basically the heart of all processing applications and hence in demand due to growth in the process industry. Energy savings is a key requirement worldwide, and this global trend towards reducing heat energy costs, will lead to a boom in heat exchanger business. HRS has sold more than 8000 heat exchangers in a decade and has worked with top companies, engineering consultants, EPC contractors and process licensors. We estimates the market potential of Rs 300-400 crore for our specific innovative products like ECOFLUX corrugated tube heat exchangers, shell and tube heat exchangers and plate heat exchangers.
What cost effective solutions do you offer to your existing customers and why it is called as cost effective?
Our major USP has been our innovative technology, timely service support and quality as per international standards, which is of utmost importance to our customers. We have designed our product/process lines to be fail proof and such that processing can start at full capacity immediately on installation. Our customers have appreciated our design capability and service backup and we have many success stories to second that. Our innovative ECOFLUX corrugated tube technology minimises fouling and reduces production downtime and maintenance costs thus making the process cost effective.
Whom do you consider as a competitor and why?
We face competition from both international and domestic players and our primary competition is with the top players in this segment. However, we are our own competitors since we supply the two major heat exchangers required in process industry (STHE and PHE) and the third technology edge product ECOFLUX CTHE. This helps the customer to make a better evaluation for the process requirement and in turn we get business. We have been able to make a dent in this market based on our innovative technology and service backup. Our innovative products backed by strong management, design and service team and sales network give us a winning combination. Our products and their applications are customised to not only give price advantage to the customer but also a technological edge over competition.
What challenges have you faced so far and how do you overcome these?
The heating equipment industry segment needs to address two key areas. One, energy efficiency vis-à-vis cost of the equipment and secondly reducing or eliminating down time for maintenance which can be due to fouling or wrong selection of equipment. This is possible by good interaction between the user and the equipment manufacturer. HRS is a “one stop solution” provider for all heat exchange solutions for the process industry. Another issue that also needs focus is educating the industry on advancements in the existing technology and availability of new technology. At HRS, we offer a clinical approach in evaluating study report on plant/process for energy efficiency and optimum production through our heat transfer solutions.
Which are the new technologies in the pipeline and when is it expected to reach the market?
We have recently introduced the HRS Hot Water System, a versatile and compact hot water generation system which provides a solution for instantaneous hot water generation using energy efficient heat exchangers (Funke Brazed or Gasketed PHE or Ecoflux CTHE). They find applications in industries like pharma, food, HVAC, hotels, hospitals, brewery etc. We have received an overwhelming response and hope to generate good business through the same. Evaporation, environment and energy recovery are some of our other focus areas that we wish to invest in near future.
How strong is your international presence and which are the new countries that you are eyeing?
Our group companies are located in UK, Spain, US, Peru, UAE and Malaysia. We operate with a network of agents in different countries. We anticipate growth in other South East Asian countries, Africa and South America. We are strategising to target these future growth markets.
Who are your customers from the life sciences sector and in the coming financial year, do you think your existing client numbers will increase?
We can boast of major blue chip pharma companies of India being on our client list namely Cipla, Dr Reddy’s Laboratories., Hetero, Mylan, Lupin, Jubilant LifeSciences, Apotex Pharma, Eisai Pharmaceuticals, Hikal, Wockhardt, Biocon, Ranbaxy, Cadila Pharmaceuticals, IndSwift Laboratories, Sun Pharmaceuticals, Unimarck pharmaceuticals, Unichem Laboratories, NecLife Sciences, Suven Life Sciences, Sartorius. We have built a solid premise of trust and technical competence with our clients through our association. Our excellent customer track record has enabled us to establish a footprint in this industry, and with a vibrant growth in pharma sector we definitely foresee a significant increase in our client numbers.
How many manufacturing plants do you have and where?
We have our group manufacturing facility in Koregaon-Bhima near Pune. Our manufacturing facility is spread over four acres having a covered area of 40,000 sq ft. Our other global facilities are in UK and Spain.
Do you plan to upgrade and expand or set up new plants in the near future?
We have recently undertaken the expansion of our factory premises and completed the first stage. The expansion plan is projected to increase the production capacity of the new plant and will also increase HRS PSL’s contribution to the global turnover up to 35 per cent.
How many people are associated with the company?
HRS Process Systems started with seven people in 2003 and today we are a strong team of 90. With growth in business opportunities we anticipate the number to increase.
What was your turnover during the last fiscal and what are your expectations from the current fiscal?
During the financial year 2011-12, our turnover touched Rs 295 million and the projected turnover for 2012-13 is Rs 350 million.
