Launching of new products and models is part of the strategy to deal with the changed business environment, KSB Pumps managing director Bernd Langebartels said. The launching of world products from India is a follow-up to the strategic meeting held by the parent company, KSB AG in India. This was the first time that such a meeting was held outside Germany.

India was chosen as a strategic market with best potential in Asia with the Indian plant being the prime source of supply to both the regional and European markets for some products.

The Indian plants in Chinchwad, Pimpri and Coimbatore are the competency centre for these new products with responsibility from designing,engineering to manufacturing and supply. The export orders will help bring in volumes to the business, which has been affected by the slump in industry and delay in project realisation.

These problems had led to the shrinking of the market pie. Fierce competition has further put heavy pressure on margins. In additional the the unorganised players are muscling their way up into the market.

"We have become more goal oriented," says Langerbartels. Normally it would have taken years for completing projects but now the speed of implementation has increased, he says. The boiler feed pumps will be the second world product to come out this year. Last month KSB launched `Multitec' the high pressure multi-stage ring section pumps. This product took less than 13 months from developing to introduction in the market, says Langerbartels.

The was possible due to the restructuring exercise carried out by KSB. It was able to achieve considerable cost reduction, increasing plant productivity and cut in delivery timesfrom four to six weeks to less than four weeks.

The distribution system was changed and more factory outlets opened. Dealer network is expanding from from 350 to 400 by end of this year. Fresh investments to the tune of Rs 10 crore was pumped in during last year and another Rs 9 crore will be pumped in this year.

This helped KSB to gain substantially during last year in the standard business segment, which accounts for 50 per cent of the company's business. These are products sold through the dealer network. However the specialised engineered pumps business has not performed as well. As a result there is no substantial difference expected in the the overall performance. Last year the turnover was close to Rs 200 crores.