Danish pump manufacturer Grundfos is betting big on e-pumps (pumps with built-in Variable Frequency Drives) to drive growth in the Indian market.
The Managing Director of Grundfos Pumps India, Ranganath Krishna, says the focus for 2020 will be to continue making products that have a positive impact on the environment and address the water-related challenges faced by our customers. “Digitization and e-pumps are the major areas of focus. We look forward to 2020 and expect it to strengthen our plans. Considering the current economic scenario we will budget growth of around 10% over 2019.”
The industry size in India is approximately 10,000-12,000 crores, within which, Grundfos holds a 4% share. “We are not the largest in the pump business in India, however, globally we are the pioneers with the largest market share of 10-11%,” says Krishna.
Alluding to the reason, Krishna says, the pump market in the country is low priced and inefficient. “We don’t want to be in that business. Thereby, A big chunk of what is being bought is out for us. For us, it’s efficiency and the best quality that matters the most, and we are not planning to compromise on that to reduce the price.” Grundfos India is growing at a CAGR of 30% in India.
Grundfos has crossed the Rs 500 crore mark in India (INDO Region) in FY18, finishing the sales at Rs 510 crore. This was a 12.5% growth over the 2017 sales. Krishna mentions that in the year 2019, the company is expecting a sales turnover of Rs 540 crores.
The company is planning to improve its presence in Bangladesh and North East India in the next couple of years.