Point Pumps ties up with Bajaj Allianz

Offers insurance cover to pump buyers

With customer satisfaction becoming the buzzword among companies and industries, new strategies are being mulled to gain more customers.

The new marketing strategy of Point Pumps, the pump division of Coimbatore - based Sharp Industries Private Limited, is a case in point. The company has tied up with Bajaj Allianz General Insurance Corporation to provide insurance cover for its customers.

Speaking to Business Standard, Kannan Ramachandran, chief executive officer, Point Pumps, said that its product would come with a personal insurance cover up to Rs 2 lakh.

The insurance cover comes with only two variants - submersible pumps, with an insurance cover of Rs 2 lakh, and mini monoblocks that are entitled for a cover of Rs 1 lakh.

The premium would be paid by the company and the claims can be made throughout the country, irrespective of the place of purchase. However, the insurance option loses its validity if the buyer sells the pump to another individual, he added.

Elaborating on this, Kannan said, "With customer relations management gaining importance by the day in almost all the spheres, we wanted to offer something different, other than the usual discounts and freebies. Our strategy may be called a 'customer driven marketing'".

Though the offer is introduced across the nation, the offer of insurance cover varies in different states.

In Tamil Nadu, it offers insurance for submersible and mini monoblocks that are fast moving in the state, whereas in the neighbouring Kerala, buyers of centrifugal pumps (which are largely sold there) would get the offer.

Outlining the future plans of the company, Kannan said that Point Pumps has lined up a new product launch of 45-50 variants of pumps in the next two months.

"We have been involved in the new product development for the last one year. The capacity of these pumps would range from 1 HP (Horse Power) to 15 HP and are designed for their application in various sectors viz., agriculture, domestic and industrial," he added.

The price of the products starts from Rs 6,500. Initially, they will be priced at least 20 per cent lesser than the competitor products, in order to boost sales.

The company exports its products to Sri Lanka, Australia and South Africa, besides the Middle East countries. Around 15 per cent of its total production caters to overseas market.

The company invests around 10 per cent of its revenue in R&D activities. With new schemes and launches lined up for the current fiscal year, the company hopes to achieve a 40 - 50 per cent growth in its income and volume, Kannan said.