Chennai, July 23 (IANS) Danish pump manufacturer Grundfos is planning to make India its global research and development (R&D) base, a top company official said Friday.
The $4.5 billion-turnover company is also setting up a new facility at Sriperumbudur near here to cater to neighbouring country markets.
"We have 16 acres of land at Sriperumbudur where we plan to build a bigger facility and move in there by 2012. However, details about the capital expenditure, the products to be made and the markets to be served are being discussed," Grundfos India Managing Director N.K. Ranganath told reporters here.
The 12-year-old, Rs.208-crore Grundfos India is responsible for markets in Bangladesh, Bhutan and the Maldives.
Launching a new range of water pumps targeting the domestic residential segment under the DAB brand belonging to group company DWT, Italy, he said Grundfos is planning to convert Grundfos India's Thoraipakkam facility here into a R&D centre to house around 300 engineers over the next five years.
"Recently a small R&D division with 30 engineers has been set up to develop software to be embedded in water pumps. This is being done on an experimental basis as the group's global R&D is based out of Denmark now," he added.
Meanwhile, Grundfos India has taken up a small space at Marg Special Economic Zone (SEZ) to start exports of water pump components.
Speaking about the DAB range of water pumps, he said: "Our Grundfos pumps are targeted at institutional segment and it is premium priced. However we found there is a latent demand for our energy efficient pumps at mid market segment. But in order to tap that segment effectively this new range is added."
Though belonging to the same group globally the Grundfos and DAB range of products were sold by different marketing channels and only in India both the brands will be sold by one company, Grundfos.
"The total Indian pump market (including industrial) is estimated to be around Rs.4,500 crore. The size of residential segment is estimated to be around Rs.900 crore," V.V. Ramanan, senior manager (Marketing) said.
According to Ranganath, the DAB range of pumps now imported from Italy and China are cheaper than Grundfos pumps as it uses materials like engineering plastics.
The DAB pumps will be sold by the Grundfos India's existing distributors and the range includes monobloc, drainer, borewell submersible, swimming pool pumps and water pressure boosters.
"We also have a water pump that eliminates the need for an overhead tank for bungalows. The pump will supply the water as and when a tap is opened," he said.
Ranganath hoped the DAB range of products would contribute around seven percent of the company's turnover in a year's time.