Grundfos has reported a 14 per cent growth in India in 2023 and aims to maintain double-digit growth going forward as the Denmark-based leading pump maker sees promising opportunities to expand its business across its four divisions in the country.

“We had a good year in 2023 and India was one of the few countries that performed well for the group. Our revenue touched ₹900 crore. We believe that there is a lot of potential to grow across our business segments,” Usha Subramaniam, Country President – India, Grundfos Pumps India Pvt Ltd, Indian arm of the $4.6 billion Grundfos.

Revenue breakdown

The company offers energy-efficient pumps, motors and related products in four business categories - industrial solutions, commercial building services, domestic or residential building services and water utilities.

With water conservation becoming a priority for industries, commercial buildings and governments, Grundfos sees promising opportunities to provide its water and energy-saving solutions.

Currently, the industrial solutions segment contributes about 52 per cent to the company’s revenue. “Sectors like mobility, food and beverages and pharmaceuticals contribute more than 50 per cent to this segment’s business, with renewables showing potential,” said Shankar Rajaram, Sales Director - Industry, Grundfos Pumps India.

The company’s growth is being driven by Tier-2 and Tier-3 towns, with future prospects strong due to urbanisation in major cities.

Grundfos’ Indian operations have evolved from assembly and sales to include design and assembly. Also, now a significant portion of embedded software that goes into the company’s pumps is done out of the software division, which has grown to a strong 90-member team in the past few years, located inside the Chennai complex.

Grundfos Indian operations also pledge to continue its efforts to increase localisation significantly in its products to remain cost-competitive in the Indian market. “Right now, the overall localisation level is about 40 per cent, up from sub-30 per cent in 2019. The ambition is to take it to about 60 per cent level in the next 3-5 years. However, in some products like motors, the localisation level is 85-90 per cent,” she said.

Rajaram said though the group has factories across the globe, the management was also contemplating making India an export hub for some products. To start with, Indian operations could look at shipping machine castings to other production units of the group. “This is the long-term dream of Grundfos in India,” he added.

Direct outreach strategy

The company’s iTruck, where a truck displays the company’s intelligent and energy-efficient pumping solutions directly to industries across India, has now reached Chennai. The iTruck campaign, launched on September 25, 2023, from Gurgaon, has covered over 12,500 km and visited over 90 cities across Haryana, Uttar Pradesh, Punjab, Rajasthan, Gujarat, Maharashtra and Karnataka. The vehicle will continue its journey towards the East and North, reaching more cities by July 2024.

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