Rinnai UK faces a challenge – getting the domestic market to embrace an instantaneous water heater when condensing combis are in vogue. HVR spoke to managing director Geoff Hobbs and lent an ear to his cunning plan
Rinnai UK is introducing its Infinity instantaneous water heater to the UK domestic market.

Geoff Hobbs, managing director of Rinnai, acknowledges that the market is focused on condensing combis - but he has a cunning plan.

That is because Rinnai has identified that there are a couple of situations in which a condensing combi will not do the job well.

'Many houses have three, or even four, bathrooms or shower rooms. A condensing combi often struggles if more than two are being used at the same time,' Hobbs argues.

His company is about to offer a package - a condensing boiler in tandem with an Infinity 26i (or a larger one for more bathrooms) instantaneous water heater. This means flow rates are maintained even if all the bathrooms are being used at the same time.

'It is a case of three pipes and a plug,' says Hobbs. 'The package is supplied with all the fittings. All that is needed is the copper pipe.'

He adds that this system is about 30% cheaper than some alternatives.

Although a newcomer to the UK, Rinnai makes about 14M gas appliances worldwide and employs 18,000 people, which, Hobbs suggests, makes it the largest manufacturer of gas appliances in the world.

Across the world - although not necessarily for the British market - it makes gas cookers, rice cookers, fan convectors (3kW-15kW), and a gas clothes-dryer.

For instance, the company that makes sushi for Marks & Spencer has about 15 Rinnai rice cookers on its production line, each of which make 52 portions at a time.

'Further, the Japanese restaurant sector is one of the largest growth areas in the UK.'

Companies that supply LPG have also contacted Rinnai about the gas clothes-dryer. Hobbs says: 'Apparently, it is the only gas dryer that works with LPG.'

The dryer is presently in the test house. The rice cooker is sold by catering specialists across Europe.

Rinnai's research and development (R&D) budget is 3% of net sales and about 450 people work in the department - a figure Hobbs is proud of.

'Most companies spend nothing like this budget on R&D,' he says.

Rinnai has a large hurricane simulation room, which blasts units with strong winds and rain to ensure they stand up to a battering when they are mounted externally.

On the top of Rinnai's building, heaters are laid out and pressurised salt water is sprayed at them for 365 days a year to test them for longevity because in Japan, and indeed many other parts of the world, gas appliances - such as instantaneous boilers - are mounted outdoors.

Even in the UK, some 40% of Rinnai sales are for external units.

'The Japanese, and most other nationalities, cannot understand why anyone would put a gas appliance in the office or home when they don't need to,' says Hobbs.

'And it is up to 30% cheaper because the flueing for the external unit is integral.'

Think about it, says Hobbs. The owner of a caravan park that has five or six of these boilers on the premises could save a packet by mounting them outside.

And why should a hairdresser have a boiler or two on the wall, Hobbs continues, when there is a yard outside? It would save space in a restaurant kitchen too.

So, has Hobbs ever suggested a unit that has been taken up by Rinnai? Yes, he says modestly. Now in the late stages of testing is a control panel with an integral television. It could be used in the kitchen, or even a shower room - the unit is waterproof.

The unit is on show at head office: a prototype unit is working, even though it has been submerged in a fish tank.

In fact, the Japanese R&D department has added other functions - such as the ability to see who is at the front door, or answer the phone when you are having a bath or taking a shower. Fortunately, the video is one way.

Also under test is a wireless controller.

'These are ideas that have come from the Western Committee, where all the managing directors of the Western companies come together to discuss ideas to put to the Japanese parent.'

As well as a number of Japanese manufacturing plants, there are plenty in other countries. The

parent company has a policy of not only supplying the products, but also making the parts for the units.

'What this means is that no one can hold the company to ransom. Rinnai controls its own supply chain.'

The company also has ISO: 14001, which is an internationally accredited environmental management system designed to ensure best environmental practice at every stage of product life cycle. Rinnai is ranked about 420th in the world and is working hard to reach the top 50. Hobbs, who was previously managing director of Drugasar, admits the going is tough.

'If you ask other companies in the market they will say most of their business is in the replacement market.

'We had a new concept, we didn't have a replacement market. Nevertheless, we spent time and money promoting the Infinity product and we have captured a fair proportion of the water-

heating market.'

So why is the Infinity special? 'Depending on the size of the showerhead, the Infinity will produce enough hot water to run three showers continuously. Further, a controller will allow you to set a temperature, and the unit will supply you water at this temperature within one degree.'

And, Hobbs adds, if someone elsewhere in the building flushes a toilet, the temperature will not vary. 'The water pressure may go down a little, but the temperature will stay the same.'

Plus, a number of Infinity units can be linked to run six, nine or even 23 showers, or however many are needed. 'The Hilton Hotel in Melbourne runs 26 Infinity 26i (54kW) units to power its showers and baths. They are all lined up on the roof, alongside the air conditioners.

'Think of the benefits. Plant for an alternative method of heating the water, and storage, would have to be craned on to the roof. If it goes wrong, there is no hot water. With the Infinity, if one goes wrong, the rest will cope until it is fixed. Plus, there is no storage needed - so no wasted energy. And they can be configured so that they turn on in various combinations.'

There are three sizes of Infinity: the 16i (for two to three showers), 26i (54kW for three to four showers) and the 32i (70kW for five to six showers).

Hobbs refers to the 16i as 'the best multipoint heater in the world'.

Take the competition, he insists. Most multipoints have 30-year-old technology and manual controls.

Rinnai's move into the UK and Europe must be working well. The UK and the European business - run from the offices in Runcorn, Cheshire - began in 2003. Five years later it has a multi-million pound turnover.

And this, in spite of the fact that an Italian operation has grown so spectacularly that it is now a separate operation, having split off last year.

During the next three years, Hobbs has set himself a fierce target of doubling turnover - and profit too. He also has the job of developing Hungary, Latvia, France and Germany.

He already has distributors up and running in Holland, Belgium, Portugal, Norway, Spain, Ireland and Malta. 'As far as I am concerned, the European market is in the bag,' he says confidently.

This leaves Rinnai UK with two areas of development - renewables and domestic.

The UK company has started selling solar packages, and the Japanese parent is so happy with sales progress it has given Hobbs the go-ahead to buy a solar company in the UK.

Rinnai has already bought an Australian company that makes solar panels.

Hobbs has surveyed the UK market and sees two areas where he wants to invest. First, he estimates the multipoint market in the UK is 60,000-80,000 units, which, he says, is enough to be getting on with.

Plus there is a larger-house sector - worth around 200,000 units - where he can also make inroads. In fact, 10% of these two would, he insists, still be a nice little earner.

Put like that, and considering how quickly the company has grown to date, there is every reason to assume he will succeed.