Grundfos to set up assembly plant in Gujarat

The wholly-owned subsidiary of the Denmark-based Grundfos Holdings, clocked a turnover of about Rs 475 crore for the calendar year ended 2016.

NK Ranganath, MD, Grundfos India said, “We are awaiting the final approvals to begin operations at the 50,000 sq ft leased facility. We have started assembling pumps at a nearby location to cater to our customers. The new plant taken on a light-asset model for a six-yearlease, is part of our efforts to reduce logistics cost and to be close to our customers. We would like to replicate what we have in Chennai to service our markets in Ahmedabad, Pune and Mumbai, where we have refurbished our offices too.” Grundfos has invested Rs 12 cr mainly on the equipment and machinery in the new facility. 

Apart from being close to its customers, the facility will enable Grundfos to cut its inventory by four days and reduce the lead time by two to three days, he said. Noting that the pump market is growing at a compounded annual growth rate of 6-7 per cent, Ranganath said Grundfos is looking to triple it in a five-year time frame.”