We try to cut power consumption to address climate change challenges: Mads Nipper

NEW DELHI:  After working with toymaker Lego for 23 years, Mads Nipper made a surprise move to Danish pump manufacturer Grundfos in 2014, taking over as its Group President and CEO. In an interview, Nipper shares his plans to make Grundfos a leading provider of green solutions in the water and waste management space:

You seemed to be focused on energy consumption. What are the potential risks?

The world’s two biggest potential risks right now are climate change and water challenges. Being a small company of only $4 billion, it is fascinating to think how we have good chances to be one of the world’s most important firms in addressing water and climate change challenges.

With the existing technology, we can help reduce 50 per cent of the energy consumed by water pumps globally. Electrical pumps account for 10 per cent of global electricity consumption. We aim to bring it down to five per cent. We are on the path to making Grundfos act a catalyst for other companies to follow suit. 

Where do you see Grundfos in the next five years from now?

I don’t dare to come up with predictions that stretch that far. The world economy is moving way too fast for that. The future, of course, is all about strengthening the current business of pumps. Undoubtedly, India is one of the countries that has a fantastic innovation power, not only on the mechanical engineering and innovation side but also on digital innovations.

So, we are investing more and more in innovation to bring intelligent products with a high degree of connectivity, water management and water treatment, and new materials that prolong the lifetime of our products and increase performance.

However, we are aware that India is a price-sensitive market. We too are keen to have a broader presence than only in the premium market. But unfortunately, we will never be able to compete on prices in the country as we will never sell something that is not strongly differentiated. Because if we don’t differentiate we are competing on others’ term and then we will lose. There will always be an Indian and Chinese player who can make a good pump, not a great pump, at an affordable price. Even though we build factories in these countries, we will probably be more expensive but sustainable.

How is India more attractive than China, or the other way round?

I really don’t believe either India and China is more attractive than the other. Both the nations are very very similar in terms of market behaviour, competition and population.