After creating a space for itself in the domestic pump market over 15 years, Grundfos India — the local unit of Denmark-based water pump manufacturer Grundfos — is looking to benefit from the NDA government’s focus on infrastructure development while maintaining its global trail of robust CSR practices.
The Chennai-based company that has laid down plans to double its revenue in India to $100 million over the next five years recently announced a project, along with the Grundfos Foundation and Sunlit future, to bring clean water to 100 villages across India.
The first phase of the project that is to be co-sponsored by the Grundfos Foundation aims to cover 28 villages across states like Odisha, Maharashtra, Madhya Pradesh and Uttar Pradesh. The Grudnfos Ffoundation is the trust created by founder Poul Due Jensen in 1975 and holds close to 88% of ownership in the Danish company.
Grundfos regards solar energy and access to clean drinking water in India as both a challenge and an opportunity for its India business. The local unit has sold close to 9,000 solar pumps and has already set up solar solutions in Maharashtra, Madhya Pradesh, Bihar and Chhattisgarh.
It estimates the sales of its solar pumps to stand at 6,000 pumps in 2014 and with an expected sales growth of 20-25% for 2015, the category is considered the fastest growing business segment.
Although India is predominantly an industrial pump market for the company as it accounts for more than half of the sales, the water utility segment is also a focus area given that currently on average only 7% of India’s sewage systems is being treated currently. Grundfos wants to tap opportunities around government’s plans to develop 100 smart cities and have already started providing some products for the DMIC project in Gujarat.
As part of its growth strategy , the Indian subsidiary of the Danish company may see investment of close to 40-50 million euros in the coming years also as it plans to set up a new plant near Pune. Currently, the company which clocks in annual revenue of close to Rs 360 crore .
Besides a production unit at Thoraipakkam, Chennai, Grundfos also has SEZ facility about 70 km from the plant that is used for exporting some components to Europe and assembled products to its sister companies in Africa. Indian operations also take responsibility of selling to adjacent markets like Bangladesh, Bhutan and Maldives.
(The writer was in Bjerringbro at the invitation of Grundfos)