Grundfos India will open its third facility in Ahmedabad to tap the West and North markets. The factory, with an annual capacity to make about 14,000 pumps, will commence operations in June.

The subsidiary of the Danish manufacturer has invested invested ₹12 crore, which accounts for machinery and infrastructure cost. The company has leased 50,000 sq ft of land from a vendor.

Almost 30 per cent of Grundfos India business is concentrated in the western region, which also accounts for about over 50 per cent of its process pumps demand. In addition, most of the locally sourced steel comes from Gujarat, which is transported to the Chennai unit for production, from where the finished products are exported.

Addressing media persons, NK Ranganath, Managing Director, Grundfos India, said: “Having a facility in Ahmedabad will reduce the cost associated with logistics and transportation. It will bring down inventory time by four days and lead time by three days.”

The North and West account for about 40 per cent of its India operations, he added. The South accounts for about 30 per cent and the rest comes from the East and other countries such as Bangladesh and Maldives. In addition to the new facility, Grundfos India is looking to expand its distribution network and product range in line with the company’s portfolio through acquisitions.

Grundfos India, a wholly owned subsidiary of Denmark-based Grundfos Holdings, registered a turnover of ₹475 crore in calendar year 2016 and is growing at the rate of 10 per cent. Ranganath said the company is expected to end 2017 with revenues of over ₹500 crore.