Sidwal Refrigeration Industries Ltd. is the most visible brand, particularly in the north Indian market. The company keeps expanding with more firm inquiries flowing from leading bus makers. Soon, its air-conditioning units will be fitted on all inter-city buses too. This and other details of the company expansion programme were disclosed by Mr. S.S. Sidhu, Chairman, Sidwal Refrigeration, in an exclusive interview to MOTORINDIA.
Excerpts:
Question: How has the current year been so far for Sidwal. How was the performance of the company last year?
Answer: The effects of global slowdown have had some impact in our unitary and mobile air-conditioning business. However, during the same period, our other business divisions such as Railways, DMRC, Package AC and Defence made considerable progress and we achieved 22 per cent growth in overall sales revenue.
Q: What about the product range you currently offer for the bus segment? Are you planning to launch any new products, specifically for the city and inter-city bus segments?
A: Sidwal has the largest range of air-conditioning products for the bus industry to meet the diversified needs of customers, starting from trucks, Defence combat vehicles, military ambulances, free flow units for city ambulances and low-roof mini-buses, and roof top units for small, mid and large buses having seating capacities from 10 to 72 seaters.
We have already launched a new series of air-conditioners having low height as minimum as 170 mm with aerodynamic features for smaller and mid-segment buses. Similar models which are undergoing final testing will be offered to our valued customers within this financial year.
Q: Has there been any significant or notable achievement or landmark achieved by Sidwal in the recent period, which you would like to highlight?
A: Sidwal has been part of many prestigious projects, including design and development of air-conditioning system of “Palace on Wheels for Cox & Kings, air-conditioning of missile launching vehicle for BROMOS”. We are the only Indian company supplying air-conditioning units to the Delhi Metro Rail Corporation. Recently, we have signed an MoU for transfer of technology with DRDO for the development of air-conditioning units for Military Combat Vehicles (Tanks).
Q: What is the manufacturing capacity for bus ACs you have established and are you planning to establish additional capacity?
A: At preset, our annual manufacturing capacity of bus air-conditioners is 1,500 units, which will be raised to 3,000 units within this financial year. In the next 5 years, we will have an installed manufacturing capacity of 10,000 units for large-sized bus air-conditioning units.
Q: The JNNURM order for 15,000 buses has given a boost to the bus segment. Have you received any new orders under the project?
A: We are already working with OEMs for the JNNURM project. At this juncture, it will not be possible for us to disclose it further.
Q: Have you made any important breakthrough with the OEMs like Tata Motors, Ashok Leyland, Swaraj Mazda or Eicher?
A: We are regularly supplying bus ACs to coach-builders having chassis from Tata Motors, Ashok Leyland, Eicher, Force Motors and Swaraj Mazda. We are also working with leading OEMs for design and development of new vehicles.
Q: In the transportation segment, apart from the bus segment, the refrigerated truck business is also growing fast in line with the growth of the organised retail sector? Do you plan to launch your products for the truck segment as well?
A: We are having strong presence in domestic air-conditioning and industrial refrigeration business. We are also expanding in the area of transport refrigeration, apart from walk in cold rooms, supermarket refrigerated display cases, refrigerated commercial kitchen equipments and ice machines already in line up managed by core focused team of Climatrol corporation associate company of Sidwal.
We are also having business inquiries from Tata Motors for the design, development and supply of refrigeration units for small and medium-size vehicles.
Q: What was the turnover for 2008-09 and what is the target for the current year? Are there any short-term or long-term targets you have set for your company?
A: During the last financial year, our group achieved a sales turnover of Rs. 112 crores. We are having firm orders in hand and are expecting to achieve sales revenue of Rs. 175 crores in the current financial year. Further, in short term, we will achieve sales revenue of Rs. 350 crores, which is based on constant demand for our specialized air-conditioning and refrigerated products.
Q: Is Sidwal also exporting its products? If yes, how is the export business?
A: At this moment, our group is not exporting any air-conditioning and/or refrigeration products. However, exports will be our thrust area in the near future for unitary products (water coolers, package and domestic ACs, etc.).
Q: It is rumoured that the bus ACs offered by Sidwal are imported from China and branded as Sidwal. How do you react to this?
A: Sidwal is the only Indian company having no imports of bus ACs and/or sub-assemblies from China. The information is baseless, and such rumors are made by certain importers / trading companies to dilute our emerging presence in this growing business.
We have made it open to our valued customers to visit our premises any time and witness the manufacturing, testing and evaluation of quality products made under the brand image of Sidwal with quality components imported from SPAL - Italy, Prestolite – UK, Bitzer – Germany, Denfos, Parker / Minoli, Valeo – Japan, and many more.
Q: How do you see the transport air-conditioning business growing in the future and what are the future growth plans for Sidwal in this segment? Are you looking for technology partners to grow further?
It is estimated that the domestic market size of Indian bus air-conditioning and truck refrigeration industries is about 15 per cent of the existing Chinese market. The growth rate and economic condition in India and China are more or less similar. With this, we are expecting an appreciable growth in this industry in the near future.
Besides, the key economic indicators such as infrastructure development, sharp rise in income of the Indian middle class, change in life-style, and Government support to SRTCs and the tourism industry will definitely make this industry more appealing than before.
Excerpts:
Question: How has the current year been so far for Sidwal. How was the performance of the company last year?
Answer: The effects of global slowdown have had some impact in our unitary and mobile air-conditioning business. However, during the same period, our other business divisions such as Railways, DMRC, Package AC and Defence made considerable progress and we achieved 22 per cent growth in overall sales revenue.
Q: What about the product range you currently offer for the bus segment? Are you planning to launch any new products, specifically for the city and inter-city bus segments?
A: Sidwal has the largest range of air-conditioning products for the bus industry to meet the diversified needs of customers, starting from trucks, Defence combat vehicles, military ambulances, free flow units for city ambulances and low-roof mini-buses, and roof top units for small, mid and large buses having seating capacities from 10 to 72 seaters.
We have already launched a new series of air-conditioners having low height as minimum as 170 mm with aerodynamic features for smaller and mid-segment buses. Similar models which are undergoing final testing will be offered to our valued customers within this financial year.
Q: Has there been any significant or notable achievement or landmark achieved by Sidwal in the recent period, which you would like to highlight?
A: Sidwal has been part of many prestigious projects, including design and development of air-conditioning system of “Palace on Wheels for Cox & Kings, air-conditioning of missile launching vehicle for BROMOS”. We are the only Indian company supplying air-conditioning units to the Delhi Metro Rail Corporation. Recently, we have signed an MoU for transfer of technology with DRDO for the development of air-conditioning units for Military Combat Vehicles (Tanks).
Q: What is the manufacturing capacity for bus ACs you have established and are you planning to establish additional capacity?
A: At preset, our annual manufacturing capacity of bus air-conditioners is 1,500 units, which will be raised to 3,000 units within this financial year. In the next 5 years, we will have an installed manufacturing capacity of 10,000 units for large-sized bus air-conditioning units.
Q: The JNNURM order for 15,000 buses has given a boost to the bus segment. Have you received any new orders under the project?
A: We are already working with OEMs for the JNNURM project. At this juncture, it will not be possible for us to disclose it further.
Q: Have you made any important breakthrough with the OEMs like Tata Motors, Ashok Leyland, Swaraj Mazda or Eicher?
A: We are regularly supplying bus ACs to coach-builders having chassis from Tata Motors, Ashok Leyland, Eicher, Force Motors and Swaraj Mazda. We are also working with leading OEMs for design and development of new vehicles.
Q: In the transportation segment, apart from the bus segment, the refrigerated truck business is also growing fast in line with the growth of the organised retail sector? Do you plan to launch your products for the truck segment as well? A: We are having strong presence in domestic air-conditioning and industrial refrigeration business. We are also expanding in the area of transport refrigeration, apart from walk in cold rooms, supermarket refrigerated display cases, refrigerated commercial kitchen equipments and ice machines already in line up managed by core focused team of Climatrol corporation associate company of Sidwal.
We are also having business inquiries from Tata Motors for the design, development and supply of refrigeration units for small and medium-size vehicles.
Q: What was the turnover for 2008-09 and what is the target for the current year? Are there any short-term or long-term targets you have set for your company?
A: During the last financial year, our group achieved a sales turnover of Rs. 112 crores. We are having firm orders in hand and are expecting to achieve sales revenue of Rs. 175 crores in the current financial year. Further, in short term, we will achieve sales revenue of Rs. 350 crores, which is based on constant demand for our specialized air-conditioning and refrigerated products.
Q: Is Sidwal also exporting its products? If yes, how is the export business?
A: At this moment, our group is not exporting any air-conditioning and/or refrigeration products. However, exports will be our thrust area in the near future for unitary products (water coolers, package and domestic ACs, etc.).
Q: It is rumoured that the bus ACs offered by Sidwal are imported from China and branded as Sidwal. How do you react to this?
A: Sidwal is the only Indian company having no imports of bus ACs and/or sub-assemblies from China. The information is baseless, and such rumors are made by certain importers / trading companies to dilute our emerging presence in this growing business.
We have made it open to our valued customers to visit our premises any time and witness the manufacturing, testing and evaluation of quality products made under the brand image of Sidwal with quality components imported from SPAL - Italy, Prestolite – UK, Bitzer – Germany, Denfos, Parker / Minoli, Valeo – Japan, and many more.
Q: How do you see the transport air-conditioning business growing in the future and what are the future growth plans for Sidwal in this segment? Are you looking for technology partners to grow further?
It is estimated that the domestic market size of Indian bus air-conditioning and truck refrigeration industries is about 15 per cent of the existing Chinese market. The growth rate and economic condition in India and China are more or less similar. With this, we are expecting an appreciable growth in this industry in the near future.
Besides, the key economic indicators such as infrastructure development, sharp rise in income of the Indian middle class, change in life-style, and Government support to SRTCs and the tourism industry will definitely make this industry more appealing than before.
Sidwal is currently a 100 per cent Indian company with zero debts. We are open to offshore tie-ups provided the potential partners are equally keen on offering export market for our products.
