CHENNAI: Global pumps major Grundfos has placed its bet on India — which it has acknowledged as its second home market — from a long-term perspective. The Danish pump manufacturer has set up its third facility in Ahmedabad to tap the East, West and North markets. The factory, with an annual capacity to produce 14,000 pumps, will commence operations in June.
“We are constantly looking for areas that are under-represented.With the new facility, we have doubled the facility to cater to states like Tripura, Manipur, Uttar Pradesh, Bihar and Northeast, among others,” said Ranganath N K, managing director, Grundfos India.
It has invested rupees 12 crore, which accounts for machinery and infrastructure cost. Most of the locally sourced steel comes from Gujarat, which is transported to its Chennai unit for production, from where the finished products are exported.
The new facility will reduce the cost associated with logistics and transportation. “It will bring down inventory time by four days and lead time by three days,” Ranganath said.