Business model

HMS Group’s business consists of two main aspects: running recurring operations (sales and production of standard and customized pumps, compressors and oil & gas equipment) and delivery of technological units for large-scale investment projects of our clients.

HMS’ main customers are large and medium-sized industrial companies. We also approach small businesses through our certified dealers, as well as independent trading companies. Our expertise in engineering is a basis for expanding relations with oil & gas and energy companies, clients in metals and mining industry and water utilities.

HMS Group’s business model reflects the whole value chain: marketing & sales, research & development, procurement and manufacturing, as well as after-sales service across all of its business units. We may also use outsourcing from specialized suppliers.

Our core competence is research & development in a broad range of disciplines of rotating equipment. We develop new products and offer state-of-the-art solutions to maintain our leading positions on the Russian and CIS markets. HMS’ expertise in engineering helps us to design efficient solutions that meet the highest customer requirements.

The Group’s production facilities consist of 12 plants in Russia, Ukraine, Belarus and Germany. We benefit from cooperation between our plants, which complement each other to shorten the lead-time and optimize costs.

We continued to implement our large-scale capital expenditures program (Rub 2.3 billion in 2018) to develop our manufacturing capacities and retain the highest level of product quality. The biggest investments include the construction of a new shop for large steel casting at Kazankompressormash and the expansion of machinery shops for new lines of water pumps (DeLium, Kordis series) at Livgidromash.

Our marketing function strengthens and promotes the HMS brand in both conventional and prospective markets. As part of our marketing strategy, we regularly present new products and solutions to our customers at leading trade exhibitions in Russia and abroad.

In 2018, HMS’ overall sales volumes reached Rub 52.6 billion (+18% YoY). Our direct client list comprised over 6,000 names in Russia and abroad. The largest growth came from HMS Compressors business unit (by 61% YoY) due to a number of implemented large projects with order backlog of Rub 21.1 billion at the end of 2018.

Outside of Russia, HMS’ sales offices are currently located in Germany the UAE, as well as in Belarus and Kazakhstan. We are also growing our presence in new markets and developing relations with oil & gas, energy and international EPC companies in Russia and abroad.