CRI Pumps opens its 6th foreign subsidiary in China

December 12, 2013 8:34 am

“CRI is planning to do an investment of about $ 6 million in China in near future,” said G. Soundararajan, Vice Chairman, CRI Pumps
Pump manufacturing major CRI Pumps has opened its sixth foreign subsidiary company CRI. Pumps Shanghai Co. Ltd. in China. The new company would be fully operational from December 2013.
With the acceleration of China’s industrialisation and urbanisation process as well as the introduction of its new water, electricity and industry related policies, as per Mcilvaine estimates the pump market in China will be worth $8.4 billion by 2015. Around 13.5 million units of various types of pumps are sold in a year in China for various applications and segments. Penetration of international pump companies since many years has introduced a new dynamic to the competitive environment in the country, and the Chinese pump market is undergoing a major transition as a result. Conversely majority of Chinese customers still focus more on the pump’s initial cost than its long-term energy-savings potential. However, CRI Pumps feels international players having high-efficiency products will be well positioned to increase their share in China when broader energy efficiency mandates which is expected to be introduced by the China government come into force for implementation.
Utilising this opportunity, CRI Pumps would manufacture and also market its select range of products in China and aim for a considerable market share backed by its strong manufacturing and advanced technology, the company said issuing a statement. CRI. is the first pump manufacturer from India to have its 100 per cent wholly-owned subsidiary company in China intended for manufacturing and marketing specific products. CRI will manufacture few select ranges of high-end energy efficient pumps in its China facility. Besides, it company will also market CRI’s flagship products, manufactured and developed in India such as most energy efficient, 5-Star rated pumps in China.  CRI China would follow regional wise distributorship policy to cater all its potential customers.
Speaking on the expansion plans in China, G. Soundararajan, Vice Chairman, CRI Pumps said, “CRI is planning to do an investment of about $ 6 million in China in near future. CRI China would mainly focus on industrial, mining, process industries, pressure boosting systems, building services segments and projects in the first phase. Recently CRI has acquired the industrial pumps business of UK-based, Pumps & Process Systems Ltd. and has launched in India, the energy efficient industrial pumps which cater to mining, metal processing, chemical, paper and pulp. CRI is also planning to leverage this acquisition in entering China.  We forecast a turnover of around $ 3 million in the first full fiscal year and are expecting a year-on-year growth of around 40 per cent to 50 per cent in the years to come for the next 4 years.”