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“Fluctuating RM prices are barrier to growth of heat exchanger market”

New Dahej plant has more than doubled Godrej and Boyce’s capacity to manufacture heat exchangers. In this interview, Allen Antao, Executive Vice President & Business Head, Godrej Process Equipment, highlights trends in the market and the company’s growth plans.
What types of heat exchangers do you offer and how is the demand?
We have been manufacturing highly critical shell & tube heat exchangers. Moreover, we have also been manufacturing vessels, reactors and columns for more than 42 years. We also manufacture high pressure feedwater heaters and condensers for super critical power plants. Godrej has further strengthened its position as a technology and innovation driven company through the acquisition of Yuba and Ecolaire brands and design technologies from SPX Heat Transfer LLC, a subsidiary of SPX Corporation, USA. This acquisition has positioned Godrej Process Equipment as a significant player in the power sector as well as an independent, global player providing critical equipment to thermal, geothermal, solar and nuclear power plants. 
Heat exchangers market is primarily driven by the increase in consumption of petroleum products (which drives demand), stricter environmental norms (which drives the upgradation of refineries), and new technologies like waste-to-energy (which drives newer plants). Also, focus on improving plant efficiencies of the existing plants calls for replacements of heat exchangers with better metallurgy and technology.
How is the market for heat exchangers in India? Which end-user industries are the major users of heat exchangers? 
According to a study by Allied Market Research, the global heat exchangers market was valued at $12,611 million in 2015, and is expected to reach $20,118 million by 2022, registering a CAGR of 6.9 per cent from 2016 to 2022. The shell & tube type exchanger takes about one fourth of this share. India too has shown a good potential in this segment with an approximate current opportunity of $ 200 million per annum, which is growing. The heat exchanger market is segmented based on the type, end-user industry, material of construction, and geography. The market is further divided into oil & gas, petrochemicals, fertilisers and power generation.
Environment and energy efficiency concerns are rising across industries. What are heat exchanger manufacturers reacting to it?
There is evidence that the emerging trends have a direct impact on the dynamics of the industry such as the expansion of waste heat recovery heat exchangers and the launch of exhaust gas re-circulation coolers. However, fluctuating prices of raw material (RM) to manufacture heat exchangers is acting as major barrier for the growth of the heat exchanger market. To mitigate this trend, we have been investing heavily in automation on the shop-floor to bring in productivity and efficiencies, and be competitive.
What is driving the heat exchangers sector?
According to a study conducted by Market Research Future, the global market for heat exchangers is likely to grow at a CAGR of around 6.9 per cent. The upsurge in demand for heat exchangers coupled with the power requirements for commercial and non-commercial purposes, along with the surge in population and economic growth in the emerging nations are some of the prominent factors which are propelling the market growth. 
What are your growth plans for the heat exchangers business?
Godrej and Boyce (G&B) has made substantial investments in its new world class Dahej plant with state-of-the-art machinery and infrastructure. This more than doubles G&B’s capacity to manufacture heat exchangers. New, advanced home-grown processes, low cost automations and modernised plants have been developed and deployed that enhance our capacity to manufacture heat exchangers. 

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