CRI Pump, one of leading pump manufacturer has opened its sixth foreign subsidiary company CRI Pumps Shanghai Co, Ltd’ , in China, The new company would be fully operational from December 2014. The company said it is planning to invest around $6 million in China in near future.
With the acceleration of China's industrialisation and urbanisation process as well as the introduction of its new water, electricity and industry related policies, as per Mcilvaine estimates the pump market in China will be worth $8.4 billion by 2015, said the company.
It was further stated that around 13.5 million units of various types of pumps are sold in a year in China for various applications and segments. Penetration of international pump companies since many years has introduced a new dynamic to the competitive environment in the country, and the Chinese pump market is undergoing a major transition as a result. Conversely majority of Chinese customers still focus more on the pump’s initial cost than its long-term energy-savings potential. However International players having high efficiency products will be well positioned to increase their share in China when broader energy efficiency mandates which is expected to be introduced by the China Government come into force for implementation.
To grab the opportunity, CRI Pumps would manufacture and also market its select range of products in China and aim for a considerable market share backed by its strong manufacturing and advanced technology. CRI. is the first pump manufacturer from India to have its 100% wholly owned subsidiary company in China intended for manufacturing and marketing specific products. CRI will manufacture few select ranges of High end energy efficient pumps in its China Facility.
Besides this company will also market CRI’s flag ship products, manufactured and developed in India such as most energy efficient, “five star rated Pumps in China. CRI china will follow regional wise distributorship policy to cater all its potential customers.
G.Soundararajan, vice chairman CRI Pumps said, “CRI is planning to do an investment of about $6 million in China in near future. CRI China would mainly focus on Industrial, Mining, Process Industries, Pressure boosting Systems, Building Services segments and Projects in the first phase. Recently CRI has acquired the Industrial pumps business of UK Based, pumps &process systems Ltd and has launched in India, the energy efficient industrial pumps which cater to Mining, Metal processing, Chemical, Paper & pulp".
CRI is also planning to leverage this acquisition in entering China.
The company has forecasted a turnover of around $3 Million in the first full fiscal year and are expecting a Year on Year growth of around 40-50 per cent in the years to come for the next 4 years.
CRI. Pumps Shanghai Co., Ltd would continue to use the R&D resources from the Indian parent company. “Fludyn Advanced Technology Centre” is the CRI’s state of the art R&D wing having more than 100 Engineers .
Though China is fraught with home grown pump companies and many other foreign pump companies have set up their manufacturing facilities in China, CRI with its vast experience in innovation and design is all geared up to enter the Chinese Market with its vast energy efficient / low life cycle cost Product Range.
