Business model

Customer focus is the leading principal for HMS Group. All our businesses — from product development to after-sales services — are tailored to solve our customers’ challenges. The deep understanding of our customers and markets, the ability to engineer products to meet customers’ specific needs and our strong expertise in manufacturing helps us secure further mutually beneficial partnerships.

Research & development

Continuous research and development play an essential role in the sustained success of HMS Group. We view R&D as the cornerstone for achieving technological leadership in the markets where we operate. Turning the technical requirements of our customers into innovatively engineered products strengthens our competitive position and helps to increase our commercial success.

HMS operates a wide corporate R&D network. It includes: 5 leading R&D centres in Russia and the CIS; 3 leading project and design institutes dedicated to strengthening our core competencies in oilfield design (GTNG), water facilities (RVKP) and compressor equipment (NIITK); and one foreign innovative technology centre - complying with offshore and oil refinery API standards (Apollo). The Group coordinates the whole innovation cycle through its headquarter in Moscow.

Our research and development activities are primarily directed at improving existing products and services, the design of products to meet specific customer needs and the development of new products, solutions and services.

Our highly qualified and experienced R&D team, combined with sophisticated computer technologies, enables us to create reliable, energy-effective, efficient pumping and compressor equipment which conforms to the requirements of Russian and foreign customers within tight schedules.

Manufacturing

Manufacturing is the core activity of HMS Group. We have built our leading industrial group through a number of acquisitions of the best producers of pumps, compressors and oil and gas equipment in Russia and the CIS. At present 16 plants operate under the HMS brand, most of which are considered flagship enterprises in their regions.

We continuously update our production facilities and technological processes to offer modern and competitive equipment for our clients. In our manufacturing process, we primarily focus on the energy efficiency, robustness, reliability and cost of our products.

HMS Group manufactures both standard and customised equipment. We purposefully target the segment of high margin products tailored for specific customer needs and based on our in-house R&D design, which secures our future sales growth. Our commitment to high quality, our solid track record and our strong expertise make HMS the partner of choice for participating in complex and challenging projects in the oil and gas, energy and water utilities markets.

Marketing and sales

In the majority of cases, the Group is awarded contracts following participation in tenders. The Group builds and maintains customer relationships at the board level, senior manager level and local level. The negotiation of large-scale projects typically involves the Group’s directors, senior managers, senior R&D personnel, technical specialists, and their counterparts at the customer’s head office. R&D personnel support the sales process by providing input at each stage.

Customised and modular equipment is sold directly to the customers. Contract terms vary depending on a number of factors, including client industry, size of the order and the scope of types of equipment.

Standard pumps are sold mainly through an extensive trading network of dealers and distributors accounting for over 100 partner companies across Russia. The central sales office, Hydromashservice, is located in Moscow. There are also 11 branches and representatives offices in Russia and the CIS and 3 outside of the CIS — in Milan, Dubai and Baghdad.

Equipment sales are made by professionals with strong practical knowledge and the ambition to offer the best solution for the customer’s specific application.

We have a well-diversified client base of around 6,000 names. A significant share of the Group’s revenue comes from “Blue-chip” clients, which include the largest O&G and energy companies in Russia. A stable revenue growth comes from small-to-medium-sized clients with annual purchases below 200 million rubles.

The improvement of our sales process and further extension of the effective distribution system are the priorities for HMS Group.

After-sales services

When customers enter into a partnership with HMS Group, their experience is not limited to the mere procurement of industrial equipment. We also provide a wide range of after-sales services, which include:

  • energy audit and optimization of energy efficiency of pumping and compressing systems;
  • warranty and post-warranty maintenance;
  • supply of spare parts, equipment repairs and upgrades;
  • consulting and training.

We run over 20 service centres in Russia and the CIS and are seeking to further extend this network.

In addition to carrying out the energy efficiency optimisation of pumping / compressing systems, our team of product managers and engineers selects tailored pumps and compressors for every type of hydro / gas technical system. Our team works in close collaboration with the client and provides necessary consulting services in order to identify and prioritize all the factors which influence equipment selection and secure the most efficient operations of pumping and compressor system.

HMS Group provides further training programmes and technical consulting services for the client’s operating personnel to enable the correct, failure-free and energy-efficient use of supplied equipment and to increase the professional qualifications of personnel.

We are currently developing a programme to expand our maintenance services to cover all types of supplied equipment.

HMS Group is anticipating a growing demand for after-market services in the oil and gas, energy and utilities sectors in Russia and the CIS in line with global long-term industry trends.

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