70 per cent localization achieved
There is greater need in an agriculture-based economy like India for an effective and economically viable cold chain system that well 
integrates supply of commodities from production to consumption centres, thereby reducing physical waste and loss of value of perishable commodities. An appropriate refrigeration technology to improve storage and transport of harvested food is indispensable for reducing food wastage. Here it is but natural that there is growing acceptance and demand for HLM’s products in the Indian market.
HLM is a world leader in reefer vans, reefer trailers and the insulated panels industry, with operations in Holland, Turkey and India. HLM India Pvt. Ltd. was established in 2009 as a 50:50 joint venture between HLM Holland BV and Transport Solutions of India (TSI). The joint venture is focused on addressing the needs of the cold chain industry for the rapidly growing Indian market. In less than half a decade, the company has gained the acceptance of leading OEMs in the country, including BharatBenz, MAN, Mahindra, Hino Motors and Ashok Leyland.
HLM has made quite a number of changes to the product which was initially imported, with a view to ‘indianizing’ it to bring down the cost, but without compromising on product quality. Mr. Siddharth Mishra, CEO & Director, HLM India Pvt. Ltd., has been committed to the reefer business and also owns a stake in the company. He says: “We brought the European GRP (glass reinforced plastic) panel technology to India and were keen on revolutionizing the Indian market. The Indian conditions were not conducive for European containers due to a number of reasons such as poor infrastructure and drivers’ negligence. We have worked on customizing the containers to suit the local conditions and requirements and have made nearly 35 changes to the European container, localizing many parts in the process. We have localized almost 70 per cent of our containers today, which until a few months back had 50 per cent imported parts.”
The localization drive has happened at the right time for HLM, with many of its customers coming back with repeat orders, including orders from some of the big names in the industry including RK Foodland, Snowman and Ecofresh. The local sourcing would help HLM offer more competitive rates and better service support for the expanding customer base.
“Many of our customers have tried the containers for over two years and are very happy with the results. Now they are beginning to place repeat orders, some of them have plans to order in triple digit numbers as well, which goes to show the kind of confidence they have in our products”, adds Mr. Mishra.
HLM containers have become customers’ first choice, in just two years, clearly indicating the product prospects ahead. Steel containers need for new flooring every four years unlike GRP containers which could be carried over from one chassis to another even after seven to eight years of use. At present, the organized reefer market in India is around 3,000 units, while the unorganized sector is equally large.
HLM currently makes 35 to 40 containers a month at its Pune facility which has an installed annual capacity of around 1,500 containers in two shifts. The fast-growing reefer maker is targeting a market share of 30 per cent in the next three years when the plant is likely to achieve 100 per cent capacity utilization.
The company expects to end FY14 with a sales turnover of Rs. 15 crores with the figure expected to exceed Rs. 50 crores by FY17.