Grundfos India to set up new facility

Danish pump manufacturer Grundfos is planning to set up a new facility at Sriperumbudur, near Chennai. Company officials declined to comment on proposed investment into the facility. The company has said the facility will cater to neighbouring countries.

Speaking to reporters after launching new range of water pumps targeting the domestic residential segment under the DAB brand belonging to group company DWT, Italy at Chennai today N K Ranganath, managing director, Grundfos India said that the company has acquired 16 acre of land and planning to move in to the new facility by 2012. He declined to comment on proposed investment and products to be manufactured in the facility.

The Rs 208 crore Grundfos India is also responsible for markets in Bangladesh, Maldives and Bhutan.

The company has also taken up a space at Marg Special Economic Zone (SEZ) to start exports of water pump components after putting up a machine shop there.

He added, Grundfos is also planning to convert its Thoraipakkam facility, which spread over 10,000 sq metres, into a R&D centre to house around 300 engineers over the next five years.

“Recently a small R&D division with 30 engineers has been set up to develop software to be embedded in water pumps. This is being done on an experimental basis as the group’s global R&D is based out of Denmark now,” he added.

Commenting on DAB range of water pumps he said, “These are targeted at institutional segment and it is premium priced. However we found there is a latent demand for our energy efficient pumps at mid market segment. But in order to tap that segment effectively this new range is added.”

The total Indian pump market (including industrial) is estimated to be around Rs 4,500 crore. The size of residential segment is estimated to be around Rs 900 crore, added V V Ramanan, senior manager (Marketing), Grundfos India.

Presently DAB range of pumps imported from Italy and China The DAB pumps will be sold by the Grundfos India’s existing distributors and the range includes monobloc, drainer, borewell submersible, swimming pool pumps and water pressure boosters.