New products to hit market soon
The Indian container industry has been clocking impressive growth rates in recent times. Factors such as gradually improving economic scenario in Europe and Latin America, the growing trade relations with African countries and policy initiatives like the roll-out of the GST regime have been among the leading factors for the impressive growth in containerized transportation. Cool-Tech Containers Pvt. Ltd. of Coimbatore is a company that has made a distinct name for itself through its containers. Established in 2013, the company has made rapid inroads into the market.
In an exclusive interview, Mr. P.K. Santhoshkumar, Managing Director of the company, spoke at length about Cool-Tech’s inception, the USP of its containers, the specialty of its reefer containers, the state of the container industry in India and its future plans.
In a short span, Cool-Tech has become a well-known name in the market. Its busy yard bears testimony to its growth story. The facility is spread over sprawling 7 acres of land on the outskirts of Coimbatore. Mr. Santhosh, who has over two decades of hands-on experience in the field, is having a busy day as usual, helping out technicians, giving them ideas and last-minute instructions. As he settled down in his cabin, we began by asking him about the origin of the company.
“Cool-Tech was started in Surat by one of my distant relatives in 2013. I was earlier working in a big company as a Director (Production). I came out and joined this business. I started the Coimbatore branch in 2015. Production in Surat was completely stopped and the facility was shifted to Delhi”, he started off.
Asked about the reason for choosing Coimbatore as the base, Mr. Santhosh explained that the city offers the perfect mix required for manufacturing containers. “Skilled workforce is available here. Political stability is another factor. The climatic conditions here are ideally suited. Since there is rainfall only for about a couple of months, work in the yard is not much affected. Plus, all the material required is easily available here.”
Different segments
According to Mr. Santhosh, there are two market segments for container makers. Elaborating on the point, he said: “The first one is the point-to-point market where you transport goods from one city to another, say, from Chennai to Mumbai or Mumbai to Delhi. For this segment containers above 19 ft are the preferred choice. The next segment is distribution. Here short distances such as Delhi to Noida or Gurgaon are preferred and 14ft – 19ft containers are favored.”
He added: “The entire market is growing like anything. In the second type of market segment, there is growing demand for temperature-controlled transportation. Medicines, for example, need to be transported under controlled temperature. Now new rules have come where even the raw materials needed for producing medicines are supposed to be transported only in reefer containers.”
Positive about reefer containers
Giving another example for the growth of the reefer container market, he said: “Take the case of a food item like a cola drink, which you will be drinking at 16 degrees temperature. The cola is manufactured at a place with 45 degrees temperature. Now, the temperature needs to be literally pulled down. This is not an economically viable option. Maintenance would be difficult. For the taste to be at its best, it has to be manufactured at 16 degrees, stored at 16 degrees, transported at 16 degrees and should be available at the store at 16 degrees. The awareness about this kind of a cycle is increasing in our country and subsequently the demand for reefer containers.”
Citing yet another example of the growth of the temperature-controlled transportation segment, he pointed to the fish transport sector. In India fish is available throughout the year. When there is monsoon on the western coast, fish is transported from the eastern coast and vice-versa. “Demand for minus temperature transport is growing higher in this sector.”
Highlighting a key fact as to how important quality is for a reefer container, he explained: “There are basically 3 key parts in a reefer container- the chassis, container and the machine. In case of the vehicle’s failure the machine and container will take care of the load. Similarly, if the machine fails, then the container and the chassis will take care off the goods. What if the container fails? Well, there is no solution. Quality is therefore of paramount importance for the container. For long distance transportation the container should be in good condition. A leak out would mean running and maintenance costs would go up exponentially.”
Cool-Tech’s specialties
Replying to a query on what makes Cool-Tech’s containers different from others, Mr. Santhosh stated that dependability is the differentiating factor. “Rectification of small things is possible whether in Delhi, Bangalore, Kolkata, Jabalpur, etc. The MS-based container is coated with a special material imported from Japan, which, according to him, makes the container body both strong and lightweight. “Imagine if you can reduce the gross weight by 500 kg. It would mean that much more load the container can carry. In fact, in the case of 32 ft container I have been successful in reducing the gross weight by about one ton,” he added.
People often tend to ignore the fact that maximum heat enters the container through the floor which in technical terms is known as the ‘running heat’. The solution once again is an imported floor coating material from Japan that is used in the company’s containers to ensure that the running heat doesn’t affect the temperature inside the reefer container.
Exciting future ahead
The future looks all exciting for Cool-Tech as it has a few innovative products in the pipeline. “For a big chassis, if you want someone to send his vehicle to Coimbatore for fitting it with a container, it doesn’t make economic sense. I am targeting this market. Good containers are not available in several parts of India. We already have offices in Delhi, Kolkata, Mumbai, Bangalore and Jabalpur. They receive their supplies from our Coimbatore branch. We will be hopefully launching the new product by April 1. This container will be lightweight and more durable, and the price will also be competitive. With the new product, around 20% of the work will be done here (Coimbatore), while the rest can be done anywhere else. I have already taken this product to Oman where people are showing great interest,” he explained.
Going into details of another product that will be launched in the near future, Mr. Santhosh observed that ice melting is an issue often faced by transporters. “Supposing you are transporting fish, you will have the fish, then you will put ice on that, then again fish, and so on and so forth. This is how it is stacked. In trucks covering thousands of kilometers, some part of the ice will begin to melt during the journey. This water leaking onto the road is very dangerous. Moreover, it also causes pollution.”
He also said: “We will be coming out with a container where runaway water will not be an issue. The ice will be in good condition for 2-3 days. We are scheduled to launch this product in March 2018.”
The company’s remarkable growth story can be gauged from the fact that it clocked a turnover of Rs. 23 crores in its very first year. Last year it was Rs. 29 crores, with the target to reach Rs. 35 crores next year. “We are confident of reaching our target. We have become the preferred choice of top players in the transportation and logistics sector. The number one player, TCI, has placed a major order with us. We are also looking for a venture capitalist. All in all, we are looking at an exciting future,” said Mr. Santhosh, rounding off the interaction on an optimistic note.