Haiger commands significant share of bus AC market

There was a time when an air-conditioned car was considered a luxury. Today practically every car plying on Indian roads comes with AC as a standard fitment. But the case is entirely different with buses, only a small percentage of which are air-conditioned. This offers a huge market for bus air-conditioning systems. Currently only 4,000 such units are sold annually in India.

One of the early movers in the Indian bus AC segment is Haiger Refrigeration Private Ltd. which sells the Haiger brand of bus air-conditioning systems. Haiger was started in 2004 by Mr. Rishi Pathak who comes with more than 14 years of experience in bus air-conditioning. Haiger is the Indian arm of one of China’s leading and premium brands of bus air-conditioners selling over 22,000 bus AC units per annum, with major supplies for KingLong in China.

In the very first year of operation (2004) Haiger India sold 80 bus air-conditioning units. It closed last year with sales of 440 units and the target for the current year is 1,001 units, says Mr. Rishi Pathak, Head of Sales and Marketing, Haiger India Private Ltd.

Haiger’s products are currently manufactured at its facility in Shanghai which is equipped with advanced manufacturing and testing systems. The company manufactures large and middle-size bus air-conditioner equipments. The company which has made an aggregate investment of $30 million is the second largest group in automobile air-conditioning in China. It exports products all across the globe including Africa, Dubai, Singapore and Indonesia.

Haiger has also announced its plans to set up a manufacturing facility in India, at Baddi in Himachal Pradesh, spread across an area of about 2.5 acres. In the first phase this factory will have a capacity to manufacture 4,000 units.

Mr. Rishi says: “Although initially there was resistance buying a Chinese product, we have proved to our customers and to the market that Haiger products are in no way inferior to any other global brand being sold in India”.

Haiger was started in India with a team of just 11 people in 2004 and today the company employs close to 100 people all over India providing service support across all important towns. “The reason for such a big team is because service is a key differentiating factor in transport air-conditioning and is very critical”, Mr. Rishi says.
Haiger has a full fledged workshop and service facility in Delhi. Recently the company has taken a large space in the outskirts of Delhi in a major hub for trucks and buses. This will be an exclusive service facility for buses parked in that region. Easier access to customers. Coming up with an office in Ahmedabad, Bangalore and Kolkata.

Haiger has bagged some significant orders in the last couple of years, including a major order from UP roadways for 218 air-conditioning units. The company has in fact established nine service stations in UP alone to provide service support to UP roadways and other private customers. It has also bagged significant orders from the Government and private operators in West Bengal, Orissa and Andhra Pradesh.

In the South, Haiger’s biggest private customer is SRS Travels to which it has supplied close to 150 units till date. Similarly, in Goa, the company has established its leadership with nearly 90 per cent of the market dominated by it. The company has also supplied a few units to MSRTC and a few more private operators who operate their buses in the Mumbai-Pune route.

Haiger offers a complete product range from 11.6 KW to 50 KW, from 3.3 tonnes to 14 tonnes. It offers solutions for buses starting from 6 m long to 12 m long coaches. Haiger is an 100 per cent OEM for JCBL and Cerita Motors. The company has also supplied a few units to be fitted on Mahindra’s touristed range of buses.

Haiger is also seriously considering entry into the truck refrigeration market as also cars and rail coach air-conditioning. The company plans to enter the truck refrigeration market by 2010. Globally, the company is also exploring the possibility of offering solutions for truck driver cabin air-conditioning.

Mr. Rishi feels that there is huge market potential for bus air-conditioning systems in India. Currently there are nearly 14 players in the market and by 2010 there would be 20 players. Currently the bus AC penetration is not even one per cent of the total bus market. The growth is endless and scope is enormous. With the common wealth games it will grow exponentially and will grow even further from thereon.

Haiger India clocked a turnover of Rs. 12.5 crores in 2007-08, and for the current year the target is Rs. 22 crores.