The Hindu Business Line : CRI Pumps eyes growth in global market

The company’s products largely catered to the agricultural sector with domestic pumps constituting about 35 per cent. It intends to confine itself to its core strength — manufacture of pumps and related products like valves.

R.Y. Narayanan

Coimbatore, June 28 The Rs 400-crore Coimbatore-based CRI Pumps Pvt Ltd is preparing a blueprint for its future growth, to expand into a global player in pumpsets manufacture.

The business plan is expected to be finalised before the end of the current fiscal; the company has, however, ruled out going public in the next two years.

Mr G. Rajendran, Managing Director, CRI Pumps, told Business Line that some leading pump manufacturers in Coimbatore have received enquiries from abroad for investment and even outright purchase of the company. The enquiries were mainly from Europe.

Asked about the size of investment offered by foreign investors, he replied that “they are ready to invest, even it may be Rs 500 crore”. But the Coimbatore companies are largely family-owned and unwilling to entertain such proposals. He said his company receives enquiries from international brands to “supply double our capacity in their brand names”. But the company is intent on marketing its products under the ‘made in India’ tag and with its own brand name, and does not want to job-work for others, he said.

Ten-year plan

The company’s business plan would chalk out strategies for the next five or ten years. Stating that the company intends to expand its product profile, he said it would look beyond the domestic market.

The global pumpset market was estimated at about Rs 1.36 lakh crore and “we do not want to concentrate on Rs 3,500 crore” (which is the size of the Indian market) where we have to jostle for space with the unorganised sector, tax evading people and other things,” he said.

Although there may be less profit in the beginning, the company wants to focus on global business opportunities for which plans would be finalised by April next, he said. Already the six manufacturing units under the CRI group have been merged into a single entity.

Asked whether he looked for infusion of technology or capital or both, Mr Rajendran replied “both”.

Slowdown

Mr Rajendran said the company achieved turnover of about Rs 400 crore in 2007-08.

In the last two years it did not show much growth due to various reasons such as trade union issues and loss of some export orders due to delays.

But the company is “very positive” about this year, he said adding that in its category of pumps it was “No 1 in India in terms of size” over the past four years and the largest exporter.

Stating that the company was exploring various funding options, he said it does not want to go for a public issue straightaway and “it is not the right time to go public also”. Once the business plan is ready, the company would have an idea of the capital required, based on which it could come to a decision. He said there were no plans to go public for the next two years.

Asked whether he would like CRI Pumps to remain a Coimbatore-based company or expand to other locations closer to its markets, Mr Rajendran said, “if we want to open (a plant), we want to open only outside India” before adding however that the company has no plans to do so in the next two years.

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