HMS Group’s business consists of recurring operations (the manufacture of standard and customized equipment and sales across all target segments) and of large-scale projects that cover the full business cycle (from engineering and manufacturing to construction and commissioning).
HMS’ customers are mainly medium and large sized industrial companies. We also approach small businesses though our dealers and specialized independent trading companies. Participation in mega-projects allows us to maintain and strengthen partnership relations with the largest oil & gas and energy generation companies, as well as with leaders in other industries.
Our core business competence is Research & Development, which allows us to develop new products and provide state-of-the-art solutions. The development of new products is focused on innovations and efficiency in order to meet the growing requirements of our clients.
Our R&D capabilities include 3 leading R&D centers in Russia (Moscow, Kazan and Livny), 1 center in Ukraine (Sumy) and 1 in Germany (Goessnitz), as well as 2 leading Russian project and design institutes (Tyumen and Rostov-on-Don). We actively benefit from synergies between our R&D and engineering centers in terms of product development and project implementation.
Our manufacturing assets consist of 12 plants in Russia, Ukraine, Belarus and Germany. In manufacturing, we also benefit from cooperation with our production facilities, which work as one large manufacturing complex, enabling us to optimize production costs and reduce lead-time. HMS plants can perform joint supplies for large-scale projects and can relocate orders, using all available capacities.
We are also continuing to implement our large-scale capital expenditures program to increase our production capacities and achieve the highest technological level of production, in order to meet the growing demand and requirements of our clients. In 2016, the first stage of the localization project at HMS Livgidromash (the assembly, mounting and testing of the shop for the production of large industrial pumps) was completed. The second phase (the mechanical processing shop) is planned for completion in December 2017, and HMS Livgidromash will become the largest and most advanced pump manufacturing plant in Russia. We have also significantly expanded our manufacturing capacities at Kazankompressormash (with new capacities in the blanking and welding shop and the installation of new milling equipment).
In 2016, HMS’ overall sales volumes reached Rub 41.6 billion (+11% yoy) and our client list amounted to over 6,000 names in Russia and abroad (+20% yoy). We increased sales to many client groups, especially in the industries of oil & gas upstream, conventional power generation and mining. Our compressor business showed impressive results due to the increased sales of gas compression systems (6 systems shipped to our clients in 2016). We are continuing to develop our sales channels, with sales volumes in 2016 via dealers and independent trading companies doubling compared to 2015.
Outside of Russia, HMS’ sales offices are currently located in Germany, Italy, the UAE and Iraq, as well as in Belarus, Kazakhstan, Ukraine, Uzbekistan and Turkmenistan. We are also growing our presence in new markets. In 2016, we entered the prospective Iranian market, with significant contracts for API process pumps.
Our marketing function strengthens our brand in both conventional and new markets. As part of our market strategy, we regularly familiarize our customers with our latest products and solutions at leading trade fairs all around the globe.