Bjerringbro (Denmark): Considered one of the largest pump manufacturers in the world, Grundfos Pumps is aiming to double sales to Euro 100 million through its Indian subsidiary in the next three to five years.
This includes setting up of an additional facility near Pune, according to a top company official.
“India is a potential market. We want to double our sales in terms of revenue by two to three years. Currently it is Euro 50 million”, Grundfos Management A/S, Group Senior Vice President, Carlo Prola told visiting Indian journalists here.
Stating there was “plenty of opportunities” from India for Grundfos, he said, “we want to increase production in India. We get one of the three big tenders in India.”
According to him, 40 per cent of Grundfos production was still in low cost markets, including India and the company was following a strategy of “Think Globally, produce locally”.
To a query on how the company was looking at a market like India, he said Grundfos planned to ramp up local content by increasing sourcing of the components.
“Our focus is on local manufacturing and sourcing of local components. We want to focus on developing products specifically for Indian market”, he pointed out.
Grundfos Group, Denmark with a turnover of more than Euro four billion, has a presence in 55 countries. It has 11 sales companies in emerging markets, two in China and 26 sales companies in Europe.
The company has more than 50 per cent market share in circulator pump markets, he said.
To a query on future plans in India, Prola said : “We are thinking more and more about prefabricated pumping stations and sewage pumps for Indian market”.
On investment plans, he said about Euro 40-50 million investments would be undertaken in the next five years in India.
This would include setting up a new factory near Pune apart from the existing one in Chennai. The company also has a warehouse unit at Sriperumbudur near Chennai.
Prola said Grundfos allocates five per cent of global sales for Research and Development and less than two per cent for marketing and branding purposes.
Grundfos India, Managing Director N K Ranganath said the company has been growing by 32 per cent Year-on-Year since the last 16 years and uses the Sriperumbudur facility for export. “We just started exporting components back to Europe”,he said.
He said Grundfos India was generating revenues of Rs 360 crore annually and had sold over 9,000 solar pumps across the country. The company has installed solar pumps in Maharashtra, Bihar, Chhattisgarh, Madhya Pradesh, Gujarat, Uttar Pradesh,
Andhra Pradesh and Tamil Nadu.
On the solar driven pumps manufactured by Grundfos, he said the company has been witnessing a “constant increase” in demand for such pumps.
Grundfos Pumps India, a subsidiary of Grundfos Denmark, was established in 1998. Besides in India, it also looks after the company sales in Bangladesh, Bhutan and Maldives. Grundfos India has more than 250 employees and works with 200 distributors and dealers with 20 offices across the country.