Grundfos Pumps India today said its assembly plant at Ahmedabad, its third facility in India, will start operations from June 1 which will help it expedite supplies to north and west parts of the country.
The company, which is a wholly-owned subsidiary of Denmark-based Grundfos Holdings, has its main assembly facility in Chennai and another unit in a special economic zone near Kalpakkam, Tamil Nadu.
Grundfos India Managing Director N K Ranganath said the Ahmedabad unit will start functioning from June 1 on a 50,000 square feet leased property.
"We want to do more in west (region). We want to replicate what we have been doing in Chennai," he told reporters here.
North and west parts of the country contribute about 40 per cent to its business, the company said.
Ranganath said the new facility will help the company reduce inventory at Chennai by four days and lead time by 2-3 days.
He further said the company is also looking to increase localisation for its products from the current 24-25 per cent. Grundfos sources steel castings for pumps from Gujarat.
The company will supply 12,000-14,000 pumps annually from the upcoming facility at Ahmedabad.
The company had registered a turnover of about Rs 475 crore in 2016 and is targeting a turnover of Rs 500 crore in 2017, Ranganath said.
When asked about the company's plan regarding its Sriperumbadur land, Rangnath said Grundfos plans to hold on the land, which was bought as part of its growth strategy.
Grundfos Pumps India provides pumping solutions for various applications -- heating and hot water service systems, cooling and air-conditioning systems, industrial applications, groundwater supply and pumps running on renewable energy.
Grundfos India sells products in India, Bangladesh, Bhutan and Maldives. The company has 200 distributors and dealers with 14 offices across India.
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