Diversification success VRV

DIVERSIFICATION SUCCESS

More than 50 years of hard work and a successful diversification strategy have earned VRV the position of a world leading Group supplying, through three production units, the most important engineering companies, general contractors and end-users across the globe. Filomena Nardi reports.

IN 1956 three young artisans decided to set up a small factory in the Milan area, intended for the maintenance and repairing of equipment used within the pharmaceutical industry. The trio probably never imagined that 50 years later the initials of their surnames VRV would represent a world leading Group of companies specialised in the design and manufacturing of pressure equipment for the chemical, petrochemical, pharmaceutical and power industries. Today VRV operates through three production divisions: Pressure Vessels, Cryogenic and Process and Plants.

The Pressure Vessel division designs and manufactures pressure equipment such as reactors, columns, heat exchanges and special vessels. The Cryogenic division is focused on the construction of equipment for the storage, transport and distribution of liquefied technical

gases. Process and Equipment, VRV’s third and last division, specialises in the design and manufacturing of complete units for drying, reaction and granulation of products under different forms.

Climbing towards Success

A big turning point for VRV’s small workshop took place in 1974 when Massimiliano Spada, the current President, joined the business and began looking for new opportunities outside the pharmaceutical industry. From the very beginning Mr Spada promoted a diversification strategy, directing the activities towards the design and construction of medium to high pressure equipment for the chemical, petrochemical and power sectors.

Due to its fast growth during the same year the company’s headquarters moved from Milan to Ornago, where the second generation of the Spada family now works. In Ornago’s new facilities, VRV began producing the first pressure vessel unit in1976 and over the years the company has continuously expanded its product range in order to meet the needs of some of the most prestigious leading companies across the globe. After a great amount of hard work and the implementation of effective strategies, VRV is now one of the top market leaders in its respective fields.

Cryogenic Division: the beginning

Innovation, diversification and internationalization processes have always been VRV’s main distinctive attributes. After a few years of leading the pressure vessel sector, in 1978 the Group decided to start a new production division using the expertise of one of its engineers specialised in the design of cryogenic equipment.

Based on Dewar’s flasks technology, cryogenic equipment does not need mechanical parts and does not require maintenance or power consumption with a consequently ever- increasing demand for cryogenic devices. In this scenario VRV designs and manufactures equipment for storage, transport and distribution of liquefied technical gases with the recent addition of new solutions such as portable homecare oxygen therapy units, LNG solutions and mobile storage tanks. During the course of the past 40 years this specific division has given great results to VRV which were further enhanced by the acquisition of Cryo Diffusion SA in 2001. This is a French company, established in 1965, that specialises in the manufacturing of vacuum superinsulated equipment for cryogenic gases. Its integration within the group has proven to

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be a winning tactic and has also contributed to putting in place VRV’s bigger plan of supplying a complete range of cryogenic products at national and international level.

As part of this plan, in 2010 a further division dedicated to the production of valves for the Cryogenic division and the Oil & Gas application was acquired. In fact the newly purchased company FEMA Srl has nearly 60 years of experience in the manufacturing of cryogenic, changeover and safety valves, as well as being involved in the aerospace industry.

Non-stop expansion

Operating through three production facilities, two in Italy and one in France, VRV Group has a well established distribution network covering all of Europe and also reaching Asia, America and Oceania. However, successful companies like VRV never stop aiming at growing and exploring new fields of action. Taking into consideration the effects of the globalization process and the aggressive competition coming from emerging markets like Asia, in 2008 VRV inaugurated a new production site in India in order to respond better to the increasing demand of local customers. The company - known as VRV India Cryogenic Equipment Pvt Ltd - based in Chennai (Madras, in Southern India) is focused in designing and manufacturing cryogenic equipment and is strategically located on the NH5 (the main highway in India) a few kilometers distance from the three major ports of Southern India. The company operates according to the same technology, construction procedures and quality standards applied in the rest of the group.

Geographic expansion, modern facilities, up-to-date technology, the ability to keep quality standards and to meet the demand of its customers are the vital ingredients for the success of the group.

Great Expectations

VRV currently employs 350 people and has a turnover of above €100 million, numbers that do not include the results achieved by the recently launched Indian plant or the newly entered valve sector. According to a company’s spokesman the group is expecting to double the current revenue of its business with an addition of about 400 employees to its work-force over the next three years. Works are now being carried out to improve the production plant in Ornago and to increase the size of the Chennai facilities which should both be completed within 2013. Moreover in line with the group’s diversification strategies since mid-2010, VRV has established a working group to achieve the status as a manufacturer of pressure components for the nuclear industry.

After more than 50 years of activity VRV has proven to be a very active and innovative group always searching for new solutions and new opportunities. Through its continuous investments targeted to internal reorganization, expansion and innovation, it seems like this organization can only move forward towards an even brighter future. n