Bitzer bullish on growth prospects in Indian market

Bitzer, the world’s leading manufacturer of compressors for transport air-conditioners, is bullish on its growth prospects in the Indian market. The company has already bagged major orders from Indian OEMs. In a recent interview to MOTORINDIA, Mr. Robert Dee Bruyn, Managing Director, Bitzer India Private Ltd., said, “The impetus given by the Government will keep demand for air-conditioned buses very strong, and this will in turn keep demand for Bitzer compressors very high”.

Excerpts:

Question: How is the overall business for Bitzer worldwide and how has been the business in India?

Answer: Bitzer International is the largest manufacturer of transport compressors in the world. Bitzer sold 58,000 bus compressors in China alone in 2008. In India, the transport compressor business grew 351 per cent in calendar year 2008 over 2007. Even with the ongoing global slowdown in business, Bitzer India will grow the transport compressor business by at least 50 per cent in 2009. In calendar years 2010 and 2011, the growth rates will be again in three digits.

Q: What is the product range you offer in the Indian market and which are the major segments (verticals) you are targeting?

A: In India, Bitzer offers compressors for bus air-conditioning, truck refrigeration and railway air-conditioning. The major growth in the past year has been in the bus air-conditioning segment due to the exponential rise in demand for air-conditioned buses. We will continue to accord top priority to the bus-air-conditioning market in India.

Q: What is your impression of the market for bus compressors in India? How do you see the future potential in Indian market?

A: The bus compressor market in India will grow at an annualized rate of about 35 per cent in the next few years due to the under-penetration of air-conditioned buses in India and the growing demand for this mode of travel. The impetus given by the Government will keep demand for our air-conditioned buses very strong, and this will in turn keep demand for Bitzer compressors very high.

Q: Do you have a manufacturing facility in India?

A: At present, we do not have any manufacturing facility in India. All our OEMs are supplied compressors from our plant in Germany.

Q: How many compressors units have been sold so far in the bus segment and which are the major contracts won by Bitzer in the Indian market?

A: Bitzer India has sold more than 2,500 bus compressors in India in the past three years. Bitzer has been a major supplier of compressors for the Delhi Transport Corporation (DTC) expansion project. In addition, the demand from hospitality industry for air-conditioned buses gave lot of impetus to growth. Going forward, the increase in grants for the JNNURM scheme announced by the Indian Government in the Budget will ensure that demand for bus air-conditioning compressors will continue to remain strong going forward. From 2010, Bitzer India will also increase the supply of compressors for the truck refrigeration segment. Railways is another segment being worked upon by us. In addition, Bitzer has introduced some patented products like a 24 vDC battery operated compressor for air-conditioning of truck drivers cabin that will see increase demand in the future.

Q: Who are the major Bus AC manufacturers you are working with in the Indian market. Are you 100 per cent supplier to any of the manufacturers?

A: Today, Bitzer India caters to the compressor requirement of all major OEMs in India like Spheros Motherson, Sidwal Refrigeration, Thermoking India, Carrier Transicold, Trans ACNR to name a few. We are 100 per cent supplier to most of these manufacturers for the range of compressors manufactured by us.

Q: What are the specific features of a Bitzer compressor, which is superior to other products available in the market?

A: Bitzer has launched the F400 & F600 series of compressors which are the most efficient compressors in their class. These compressors have housing mounted clutches which eliminate the stress caused on the shaft seals, as is the case with other compressor brands available in the market. In addition, they are upto 20 per cent lesser in weight and dimensions.
Q: What are the short-term and long-term targets both in terms of revenues and numbers?

A: The short-term goal in the next months is to open a new engineering and sales office in New Delhi, this office will cater to the expanding transport and well as commercial refrigeration OEM market. The long-term goal for Bitzer is to grow the market share of its products in India. Typically, Bitzer achieves up to 70 per cent market share in its class in countries around the globe. We envisage that this share will even surpassed in India, due to the comprehensive sales and after market support systems that we have developed here. Bitzer India has a staff strength of 14 people.

Q: What is the sales and service infrastructure created in India for Bitzer products?

A: Today, Bitzer has a comprehensive service network placed around the country. A very competent and dedicated service team is available at our office in Mumbai. We have three authorized service centres at Bangalore, New Delhi and Mumbai. In addition, authorized service providers are being appointed in ten cities across India. These service providers will be available to provide immediate service support to our esteemed customers.