The Indian arm of Denmark-based pump manufacturer Grundfos, which reported revenue of ₹1,000 crore for CY24, aims to grow by 10-12 per cent annually over the next three years. Despite a global decline of 2 per cent, India has maintained an 11 per cent growth rate, said Saravanan Panneer Selvam, Senior Regional Sales Director, Commercial Building Services (CBS), Grundfos India.
According to Selvam, the Indian pump industry has been growing at a CAGR of 6.5-7.5 per cent over the past three years. He expects India to continue growing at a slightly faster pace than the overall market, indicating that Grundfos is capturing additional market share in the country.
“Globally, the group has experienced dampened growth due to weak economic conditions in Europe and China, leading to a 2 per cent decline, while India, in contrast, recorded 11 per cent growth,” he stated. “Over the next decade, India will play a significant role in Grundfos’ global revenue.”
Increasing localisation, and manufacturing
Grundfos India, which currently has 95 distributors, is increasing its localisation efforts, with 40 per cent of its production now taking place in India. The company aims to increase local production by a few percentage points each year, targeting a 50 per cent localisation milestone in the near future. The company operates two manufacturing plants, each in Ahmedabad, and Chennai. “Both plants contribute not only to the Indian market but also export components to other regions,” he added.
Expanding footprint in multiple countries
To mitigate global supply chain risks, chain disruptions, Grundfos is expanding its manufacturing footprint in multiple countries. With 17 manufacturing plants globally, the company relies on supplies from Europe, which has been impacted by ongoing conflicts.
“The Red Sea conflict significantly disrupted our supply chain, delaying deliveries to India and the Far East. Although the situation has improved, such geopolitical risks remain a major concern,” he said. “This is why we are exploring new locations for expansion.”
Grundfos is also observing growth in its data centres cooling and expects the this to contribute double digits within the next one to two years. “Last year, data centers accounted for 1 per cent of our business, which has now grown to 4 per cent. We expect this to reach double digits within the next one to two years,” he noted.
