Grundfos Pumps India is setting up an assembly plant in Ahmedabad to get closer to customers in Gujarat and Maharashtra, the two big markets in western region, cut down on logistics cost and gain by reducing inventories.
For the wholly owned subsidiary of Danish major, it will be the third plant and set to begin operations on June 1.
“We want to do more in west... want to replicate what we have been doing in Chennai,” managing director N.K.Ranganath said here on Monday. Coming up on a leased land, the investment on the upcoming plant, primarily on equipment and machinery, will be around Rs.12 crore.
Interacting with a group of presspersons, ahead of their visit to Grundfos headquarters in Denmark, he said the Ahmedabad plant will supply 12,000-14,000 pumps a year. On the logistics front, he said at present stainless steel casting sourced from Gujarat were brought to Chennai, where they get converted into products before being sent to the western region markets. With the plant, there could be a reduction of four days of inventory and 2-3 days lead time.
Between them Gujarat and Maharashtra accounted for a chunk of the market in region. The plant would also benefit from the upcoming Delhi Mumbai Industrial Corridor.
Together, the western and northern regions contributed to about 40 per cent revenue of the company -- around Rs.475 crore in calender year 2016. The turnover in the current year is expected to be over Rs.500 crore.
Apart from its main plant in Chennai, , across 5.5. Acres, Grundfos India has a facility at a SEZ in Kalpakkam. Also, sometime ago it had announced plans to establish a plant in Sriperumbudur, near Chennai, and had procured 15 acres. “We will hold on to the land,” Mr.Ranganath replied when asked on the status of the project.
