GRUNDFOS IN CHENNAI

Water pumps are the last thing on your mind or the least of your worries. According to N.K.Ranganath, CEO, Grundfos Pumps India Pvt Ltd, few of us actually go out to buy pumps. We take a lot of care when we buy Televisions, Washing machines and Music systems, but pumps are something that we relegate to the background, only remembered when it goes out of order. Grundfos is about to change all that in the Indian pump market. Grundfos pumps are reputed not only for their trouble- free performance and quality, but also for constant innovation in design and standards. Chennaibest.com speaks to N.K.Ranganath, about the pumps market.

The market size depends on the number of high-rise buildings that come up at any point of time. Right now, we are into hydro pneumatic boosters, its largely a BMS (Building Management System) application pump, used in large buildings, hotels, hospitals and the IT industry. Wipro and Infosys are our clients.  These pumps basically ensure that, no matter which floor of the building you are on, when you open the tap, the same level of pressure is maintained. Its computer controlled, with variable speed. It runs based on the volume of water. Smaller versions of these pumps are being sold to residences. Its so small, it can be installed inside the shower. About 50% of Chennai can use these pumps.

We are planning to invest around Rs 56 crore in the manufacturing facility. What we plan to do is manufacture pumps that are not manufactured in any of the other Grundfos manufacturing facilities, and market it all over the world. Apart from the hydro pneumatic pumps, we have pumps that sense the water level, we are bringing in soft-start pumps that do not consume excess power when switched on (typically most pumps, need more power at the time of starting, and slowly the consumption level peters away to a steady level). What we are planning to bring is something that will eliminate the initial excess consumption.

We are also bringing in the wire-to-water efficiency concept. Is the water output equivalent to the power consumption? Over a period of five years, what have you spent and what have you got? The initial cost, maintenance cost, resale value and the running cost. Grundfos pumps save up to 85% of your running cost.

Right from the beginning we have been placing strong emphasis on developing a good network and on training. Training is mainly for the sales and services staff. We have been training our own people, the distributors, OEMs (Original Equipment Manufacturers), franchisees and the end-users. Good servicing is very important in this area. However, it’s generally found that Grundfos pumps have a very low failure rate.

Extremely competitive. There are a few major players and a large pool of minor players. There is a huge unorganised sector, particularly in Coimbatore and Gujarat. In some places in Gujarat, they manufacture them from their homes. But it’s a low efficiency, low investment market. For the same pump there is a price variance from Rs 1,000/- to Rs 10,000/- depending on whom you buy it from.

Technology and logistics are the major areas where the battle for market share is fought on. In India, purchasing a pump is not as important as say buying a Television or a Washing machine. Grundfos is planning to change all that. We make our pumps aesthetically appealing. It is no longer something you ask someone else to buy. Also, people are accepting the fact that you can pay more for good quality. Logistics in terms of speed of delivery is very important. If somebody wants a pump today, you can’t possibly ask him to wait for a week. What will he do in the meantime? Also, after-sales-service is very important. When there is a problem with any of our pumps, we replace it first, particularly in cases such as a dialysis unit of a hospital. Only later do we get into questions like what seems to be the defect, and where it lies? So, its not just the manufacturing and selling process that counts, what’s most important is maintenance and servicing.

Right now they are nervous, because they know Grundfos as a great innovator and they have a healthy respect for that. In all other countries, Grundfos companies are 100% subsidiaries of Grundfos, Holland. So they did not want to come in here with any partnerships or JVs, and also they did not want to acquire any company in India.

Yes, it has to be, as we are looking at speed of delivery, which is the key in this business. Any special application pump should not take more than three or four days, so automation is very important. We are talking about stainless steel pumps, not cast iron pumps, which take a very long time. The regular Grundfos pumps are available at any of the Grundfos outlets, anywhere in the world.

Innovation, quality, technology….

We can never be low priced but what we can assure is saving in lifecycle cost. We are trying to build a partnership concept. We treat our customers as an external associate. Because, we believe in ploughing the profits we make back into business for development of technology. And the ultimate beneficiary of this is going to be the customer.

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