How is the temporary cooling market evolving in India compared to the global market?
The market in India is opening up as many industries and end users become increasingly aware of the benefits of renting cooling equipment from a specialist temperature control provider. Sectors like manufacturing, petrochemical and refining, food & beverage, pharma, fertilizers, mining, events, and facilities management are among those that have reaped the rewards of rental.
In mature markets customers realise that renting helps them retain their capital for much-needed operational activities, as there it doesn’t need the heavy upfront investment for the outright purchase of equipment. They can also get their operations up and running much quicker, often within weeks or even days, which helps start generating profits earlier, and maintains production. And there is a safety aspect too. In mines, for instance, we can get temperature control equipment where it is needed fast, so miners can work in controlled conditions.
We are turn-key providers so we take care of everything – from planning, through installation, operating, monitoring, maintenance and finally decommissioning, so we give that peace of mind. We also generate power, using a variety of available fuels, so we can also provide the power for cooling equipment, if needed. Our equipment is made to our own specifications, and owned by us, so we know exactly what it can do, which means we can create bespoke solutions for customers, based on their unique needs.
India has leaned towards outright purchase and it will take time to change this tendency, but many are already seeing that tying up their capital and waiting months for their own equipment to arrive and then for it to perhaps spend time sitting idle and taking up space on their property, is all unnecessary.
What are the temporary cooling solutions offered by the company?
At Aggreko we have a global team of temperature control (TC) experts and an extensive portfolio of state-of-the-art equipment. We have been providing power and TC for more than 50 years and have operations in more than 100 countries, around the world.
We have chillers, cooling towers, air-conditioners, air handling units, heat exchangers and accessories, in a range of sizes, for an enviable breadth of applications. All are owned and operated by us. In India, at present we have about 10,000 TR of cooling capacity, which can be offered for various process cooling or space cooling applications. This equipment is modular and mobile, which means it is purpose-built for rental, so it is easy to transport, and quick to install and commission.. These solutions are crucial during turnarounds, seasonal spikes in temperature, performance improvement, pilot testing, maintenance outages, seasonal demands, emergency failures in permanent set-ups, early project commissioning, delay in delivery of permanent cooling equipment, etc.
We stepped in when there was severe flooding that damaged gas generators at one of our customers in Chennai in late 2015, for example. This meant that one of India’s largest commercial complexes was unable to operate their VAM chillers and we quickly provided power and about 1000 TR of cooling to ensure that operations could continue.
The Government of India launched 100 Smart Cities project. What opportunities do you look forward for your company?
The Smart Cities programme will definitely create opportunities both for India and for us as the promised investments start to materialise in commercial and infrastructure segments. Our TC packages totally support industry and growth, by maintaining production, minimising downtime, creating controlled working and maximising capital expenditure.
We are well placed to provide customised cooling solutions, thanks to our world-class fleet and service capability, as well as the power generating capacity we also have available. We can support anything from a small production facility to a power gap in a major grid. We have the experience, the expertise, the local knowledge that is backed up by global reach, best-in-class equipment, and network of depots and service centres that mean we can get the job done cost-effectively, efficiently, safely and quickly.
What are the USPs and growth drivers of your temperature control business? Which sectors generate the maximum demand for your services?
There are so many differentiators, many of which I have already discussed. They include our best-in-class equipment that is designed and built to fit our rental model, to our exacting standards. We own and maintain our fleet, which runs on a variety of fuels. We employ and train experts in their fields, who operate and monitor our fleet. We also employ a local workforce wherever we can. We have an extensive network of depots and service centres around the world. Our people are knowledgeable and passionate about what they do and how they do it. We pay attention to detail and work in partnership with our customers to understand their business and their challenges, however unique they may be. And we never stand still, which means we are constantly innovating, bringing in new equipment and looking at way to bring power in the most cost-effective and efficient ways.
All of these things have helped us become the global market leader. As far as sectors are concerned, we deal with many. We helped one of India’s leading underground coal mines with a flexible cooling package so the company could continue extraction, after high temperatures kept tripping its coal cutting shearer machines. And when a smelter company needed interim cooling towers urgently to supplement their faulty existing ones, our team worked round the clock to engineer a complete cooling tower system within eight days. Data centres are a current growth area where TC and power are needed. This sector is growing quickly and it may take time to address such additional demands.
What stumbling blocks/ challenges are faced by the company during providing your solutions? How do you overcome the same?
The biggest challenge for us in India is reversing the mindset that outright ownership is better than rental. This is really the most effective option for customers and we will work hard to illustrate that. We want to help organisations to maximise their potential for growth, production and profit.
Why Aggreko is considered as a first option when it comes to process cooling applications or commercial segments?
Aggreko believes in building sustainable partnerships with customers based on knowledge, transparency, reliability, safety and cost efficiencies. We partner with them not only when they are coming up with new or expansion plants or projects for construction power or cooling needs, but once their plants are operational we also help during production and operation. We are proud to see how positively customers respond to our successful implementation of projects.
Aggreko has capable teams, who not only understand cooling load calculations but also unique industrial applications in a range of sectors, including those we have already mentioned. By supporting them, through understanding their challenges, and working with them as a team, we create an effective solution that lets them get on with their operation and process improvements.
As far as commercial segments are concerned, we undertake almost all major events not only in India but also worldwide.We have supported too many projects to mention for commercial complexes. For us it is all about customers, understanding their needs and implementing the best solution to answer their challenges.
What is your outlook for HVAC industry for 2017-18?
The HVAC industry in India is still unorganised. However, we anticipate growth in end markets, such as construction, manufacturing and services. This gives us scope to bring in our rental model as rental frees businesses from the heavy CAPEX commitments needed for outright purchase and helps retain liquidity in their business.
We will continue to support India and the world with power and temperature control. We know that nothing happens without this. We know that our rental model works and brings real benefits, so we will continue to bring those benefits. We will continue to innovate and research new products, and support communities.
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