Don’t miss the latest developments in business and finance.

Grunfos sets up Rs 16-crore facility

Eyes Rs 75-crore turnover this year

Image
Our Regional Bureau Chennai
Last Updated : Feb 06 2013 | 8:07 AM IST
Grunfos Pumps India, a wholly-owned subsidiary of Denmark-based Grunfos Holdings, expects to achieve a turnover of Rs 75 crore by the end of this calender year. The company clocked a turnover of Rs 51.8 crore in 2004.
 
Addressing mediapersons after the inauguration of the company's new manufacturing facility in Chennai, Niel Due Jensen, chairman of Grunfos, said that the company will gradually expand to the local contents for which sub suppliers will have to adhere to strict material specifications.
 
Local production will enable Grunfos to deliver its pumps solutions quickly and with a high degree of adaptation to local conditions, he added.
 
The investment into the new manufacturing facility in Chennai, spanning over seven acres, is about Rs 16 crore excluding the land value.
 
K N Ranganath, CEO of Grunfos Pumps India Private Limited, said that the company would have a cost-saving of 40 per cent if the product was entirely localised.
 
At present, the content of localisation was about 10 to 12 per cent of the turnover. Ranganath said that the Indian subsidiary need to 'build the volume' for stain steel pumps so as to justify the import of machineries which will be required for the manufacture of stain steel pumps.
 
The company expects to double its net profits during the current calender year which was about Rs 3.5 crore for the year ending December 31, 2004.
 
The company provides pumps and pumping solution predominantly for industrial applications among others applications.

 
 

Also Read

First Published: Mar 25 2005 | 12:00 AM IST

Next Story