Hyva identifies India as critical growth engine in global roadmap

Marco Mazzu first helps me get the name right as we get ready for the interview.

“It’s hee-vaa which is the original Dutch pronunciation. After all, this is a company that was founded in the Netherlands,” says the Chief Executive Officer of Hyva, the manufacturer of tippers and cranes.

Mazzu is visiting India, which has been home to the company for two decades now. Hyva is twice as old, going back to 1979, and gradually expanded its presence beyond the Netherlands to Europe and other parts of the world with its core business of front-end tipping systems used in trucks.

“Hyva’s DNA is about being close to its customers and focussing on product innovation. When you are a leader, you have to be ahead of the game,” says its CEO who has had stints with Fiat, Case New Holland and Iveco before he came onboard four years ago.

Good market share

Hyva is the world leader in front-end tipping systems with a market share of over 40 per cent, which puts it comfortably ahead of competition. It has now entered other key businesses related to the commercial vehicle and construction industries. These include truck-mounted cranes and container handling comprising hook loaders and skip loaders.

Additionally is the environmental line that encompasses waste handling equipment. Hyva started the business in China and is confident that India will also play an important role. As Mazzu says, it is important for the company to protect its core business of tipping systems and be the best both in product and services.

Marco Mazzu

This year will see the launch of a new generation called Alpha, which is basically lighter and faster while being more environment-friendly since it consumes lesser oil.

Beyond tipping systems, continues Mazzu, Hyva’s presence in industry and proximity to customers allows “a kind of global platform” which has paved the way for some of is other new businesses. “The second part of the strategy is to leverage our presence in our operational/design capability and grow the other lines of business,” he says.

This is where growth potential is even bigger simply because it is on a share which is relatively lower in relation to the core business. “This is the second area of strategic priority where we need to grow our other businesses by leveraging our capabilities,” adds Mazzu.

To put this in context, when another player enters the business of truck-mounted cranes, they have “many, many things to build while we have a presence already”. This is borne out by the “solid and consistent” growth in cranes.

“Over the last three-four years, we have been reinforcing our capabilities by introducing more sophisticated processes. We have invested in resources to increase capacity and bring new products to the market,” says Mazzu.

In the key core range between nine and 21 tonne-metres, Hyva is coming out with a new range of cranes. The pace of launches has been quite brisk with more than 19 different models in just two years. As the CEO says, a few years ago, the norm was to introduce between five to 10 new products in the market for different lines. Compare it to this year which will see more than 25 launches.

“This is what we are focussing on in terms of leveraging our potential and making ourselves stronger in the process,” says Mazzu. During 2017 and 2018, growth has been over 20 per cent each year and the idea is to stay ahead of competition.

Investing in India

India, which is home to Hyva in facilities spread across Navi Mumbai, Bengaluru, Jamshedpur, Pune and Pithampur, has also been a focal point of investment and capacity expansion for tipping systems and tipper bodies. Last year saw the commissioning of a second unit in Pune for production of refuse collection vehicles. This will also be a hub for global sourcing and Mazzu believes waste handing is an important industry to be in.

“We have been investing in India and will continue to do so since it is very important to us,” he adds. India accounts for nearly 20 per cent of Hyva’s global revenues and comes in third place after China and Europe.

“For a global company like Hyva, India has a special place,” reiterates Mazzu. There is a fair degree of R&D happening here in addition to part of the development for waste/container handling. India is also one of the four global facilities for hydraulic cylinders (the others being Germany, Brazil and China) which translates into synergies and economies of scale.

“This means that global suppliers can cater to India while those here can meet worldwide requirements elsewhere. We have found very good suppliers here and sourcing could increase in the coming years,” says Mazzu.

In Asia, Hyva’s presence extends to Indonesia, Malaysia and Thailand apart from China and India. Oddly enough, the one large market where it is not relatively big is the US. “We went from a very small market share four years ago to 30 per cent and are confident of growing further,” says Mazzu.

There are a host of interesting challenges ahead especially with the truck industry going through important changes relating to emissions and connectivity. “We have been working and investing in these two areas,” he adds.

Among some of these initiatives are deployment of electric cranes as well as e-applications in waste handling. From Hyva’s point of view, it is imperative to keep pace with these changes and even endeavour to stay ahead of the race.

Electronics in trucks

The other important area is electronics since trucks are increasingly becoming more intelligent. As Mazzu says, the levels of electronics and the need for interconnectivity is becoming “more and more”. For greater compatibility with the truck industry, Hyva has been working and developing sensors which give out important information on safety of operations, maintenance, etc. These are then displayed on a truck or transmitted online to a fleet owner’s control centre.

“Anyone in this industry has to evolve and we definitely do not want to stay behind,” says Mazzu. Hyva’s smart systems will also be tested in India “sooner than later” in applications like mining. The country will also participate in the development of a slew of products for Hyva worldwide.

“Some have been launched recently, some will happen in the future and some I cannot talk to you about,” he laughingly adds. From his point of view, tackling acoustic pollution is as critical as reducing air pollution. This essentially means that the crane should be operated without the need to have the truck engine on.

“We have had to develop capabilities in terms of electronics, going beyond engineering to the procurement process and discovering a new set of suppliers. We believe this will help us keep our competitive advantage intact,” says Mazzu.

The CEO also believes that a new chapter is underway in bringing this kind of know-how to the development team at Hyva. The base created could then pave the way for forging new partnerships in the future. “However, we first need to bring the knowledge inside first for different lines of business, be it tipping systems, cranes, waste, etc,” he emphasises.

Mazzu says he would like to see “all of Hyva grow” in these changing times. “When you are a leader, you need to continue innovating because the others will catch up otherwise,” he cautions. He then points out the case of the Alpha crane, which is lighter and faster with work now underway on the new generation.

Likewise, India will see a lighter tipper body as part of the innovation cycle. The challenge, says Mazzu, is to keep staying ahead in a world which is changing fast and “there is no traditional industry anymore”. In his view, any industry needs to be dynamic and this is precisely what Hyva is attempting to do.

“In terms of opportunities, we have a clear strategic frame where we know the customer, understand the market and have our DNA. The platform is key because when you think of trucks, construction and mining, you already have different lines of business and it is certainly not impossible not to think of others,” says Mazzu.

Essentially, this means serving the wider world of customers in these segments while looking at more value in the future. “The secret is to have a good, energetic and enthusiastic team,” declares the Hyva CEO.

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