Buses cross through different climates like deserts and arctic regions and toil on scheduled routes through megacities on all continents. Demand for ventilation and air-conditioning systems is much higher in the case of buses than in any other transport system. For many years the Spheros Group of Germany has been a global trend-setter in the production of economical, eco-friendly and reliable heating, ventilation and air-conditioning systems for buses. Directed from its company headquarters in Gilching near Munich, Spheros guarantees customer proximity and service at currently 21 sites all over the world. Recently, we had the opportunity to talk to Mr. Helmut Zanker, Chief Executive Officer, Spheros Group, who was very optimistic about his company’s fortunes in the Indian market.
As a development partner, Spheros works together with major automotive manufacturers all over the world to create individual air-conditioning concepts for city bus to 5-star luxury coaches. In India, Spheros Motherson Thermal System Ltd. (SMTL), a 51:49 joint venture between Spheros GmbH and the Samvardhana Motherson Group, manufactures bus air-conditioners and hatches and also undertakes sales and service of Spheros products in the SAARC region.
Set up in 2006, SMTL has grown into a leading air-conditioning brand in the Indian market. The company holds nearly 30 per cent share of the country’s bus air-conditioning market with over 50 per cent share in the city bus segment.
Mr. Zanker feels there is a lot more to come from his company. “India is one of the big growth markets for us for the next five to 10 years. With a huge middle class population of over 110 million people and improving infrastructure in its major cities, India will move into better quality public transport systems which will include air-conditioned buses. We know there will be ups and downs in the Indian market, but we have the patience to stay and compete”, he says.
India, as a growth market, has grown into a highly influential one for Spheros’ plans at the global level. Following its success in the domestic market, the company has also started making use of its local suppliers for overseas operations, which is clear reflection of the world-class capabilities of the Indian supplier community. “We have started making products specifically for the Indian market, while on the supplier side, India has evolved tremendously over the last five years. Now we have begun sourcing components from our suppliers in India for our global requirements as well. The first set of suppliers have already started supplying to our plant in Brazil”, adds Mr. Zanker.
While most air-conditioning manufacturers offer products across different segments, Spheros is one of the few companies to focus exclusively on the bus segment. The one-pointed focus enables the company to exert all its efforts to consistently bringing out world-class products and technologies tailor made for different customer requirements and also back it up with excellent aftersales support.
In India, SMTL’s workforce, including its top management, has regular interactions with its fleet owner customers to clearly understand their expectations and needs. One of the results of such dedicated customer service was the placement of a big order by the Delhi Transport Corporation (DTC) during the first phase of JnNurm in 2008-09. More recently, Spheros has bagged a large order involving supply of over 300 units per month as part of the second JnNurm scheme now in progress.
Spheros, though technologically-strong, has been facing stiff competition from many of its cost-focused competitors, especially from China. Coming from the world’s largest bus market, the Chinese AC manufacturers market their products at extremely low prices making it tough for their European counterparts to compete with. Spheros, typical of the German approach, believes its focus on quality, technology and long-term engagement with its customers will help it stay on top in any market.
“We design our air-conditioning units on a cost-down basis but it can go only to certain limits due to safety concerns – there are no compromises. Customers in developing markets such as India have understood the benefits of a reliable product and a long-term association backed by good service support. We at Spheros would like to grow in a trustworthy way and have our customers with us even after 10 years, that’s our approach”, he concludes on an optimistic note.
Business expansion in China with new plant at Suzhou
The Spheros Group inaugurated its new plant at Suzhou in China at a festive ceremony. Suzhou is one of China’s most modern industrial zones. With its close proximity to the business centre Shanghai, it offers multiple advantages for co-operation with bus manufacturers, partners and suppliers, as well as personnel recruiting. The new plant has a production area of 3,500 sq. metres and offers 100 jobs, covering development, sales and administration. Currently Spheros has a workforce of 50 in China.
With the opening of the new plant, Spheros has set the course for the future in the Far East. Besides expanded production of the air-conditioner range, the prerequisites have been met for the manufacture of heaters and pumps, sales of which have considerably in China.
Optimising production network
In accordance with the high Spheros quality standards, up to 20 air-conditioning units of the CC and Aerosphere series for city and inter-city buses, tour coaches and minibuses can be manufactured at Suzhou daily. Besides supplying the domestic market, including the growing export business, production for other Spheros locations – Latin America, Australia, South Africa and the Middle East – is to be stepped up in future, with the aim of reducing manufacturing costs, inventory and delivery times. Spheros China is thus playing a pivotal role in the Spheros production network.
In addition to its portfolio of high-performance air-conditioners, the Thermo series of heating systems and water pumps is also available from Spheros China. Until now these products were supplied by Spheros’ Neubrandenburg plant and installed on site. In response to strong demand, Spheros has decided to establish a separate heater production facility at Suzhou by early 2015.
Mr. Helmut Scheid, CTO, Spheros Group, extremely satisfied with the current developments in China, says: “After a hesitant start and a consolidation phase, our business in China has gained considerable growth momentum. In 2013 sales began to soar, so that we can already announce a record year. And a glance at our order books promises positive returns for 2014!”
Massive order to equip 850 buses with AC systems for Winter Olympics
Spheros has received a contract worth about €5.5 million to install heating and air-conditioning on a total of 850 GOLAZ and MAZ buses for the Olympic Winter Games in Sochi.
Preparations for this major project have been underway since 2011 when the Russian GAZ Group and the Belarusian MAZ Group were declared official bus suppliers to the Olympic Winter Games. The Olympic dream thus also came true for the bus air-conditioning manufacturer. In the past few months the company has installed climate control systems in 400 GOLAZ and 450 MAZ buses, not only, as one may expect, heaters and water pumps but also series-manufactured air-conditioning units.
REVO 250: First series deployment
Depending on the type of bus, the Aerosphere Tropical 350, REVO 350 and REVO 250 rooftop units were installed. This was the first time they have been deployed in Russia. The air-conditioning units were delivered for implementation directly from the Spheros plant in Turkey to the bus plants at Golyzino near Moscow and Minsk. The heaters (Thermo E) and water pumps (Aquavent 5000S) were manufactured at the Spheros plants in Neubrandenburg and Lviv.
Spheros is also guaranteeing effective service during the Olympic Winter Games. A team of 14 service technicians will be available round the clock to ensure smooth operations in Sochi. After the Olympic Games the majority of buses will be transferred to the vehicle fleet of Moscow transport undertaking Mostransavto for operation on regional routes in the Moscow area.
Mr. Helmut Zanker, CEO, Spheros Group, says: “We are very proud to participate in an important project of this kind and to have won a major contract in Russia. Spheros has once again demonstrated its international competence in a major sporting event.”