Pump manufacturing major CRI Pumps has completed acquisition of Fabbrica Italiana Pompe Sommergibili Srl (FIPS), an Italian company engaged in manufacture of waste water pump technology.

This is the second acquisition for CRI Pumps after the recent acquisition of Pumps & Process Systems Ltd, in UK. This company is engaged in manufacture of industrial pump range, said Soundararajan, the Vice-Chairman of CRI Pumps .

Without divulging the acquisition cost, Soundararajan told Business Line that CRI Pumps would continue to invest further on capacity building and research and development.

“We will look to acquire value added pump manufacturing companies in the developed countries and take both — the inorganic and organic route to grow. We took this decision almost four years back, as the initial investment cost for developing value added pump range is far higher than acquiring an existing unit,” he said, when asked if there were more acquisitions in the pipeline.

Independent entity FIPS is a Milan-based family-owned enterprise embracing technologies in sewage, effluent, drainage and waste water handling solutions for municipal, industrial, residential and building applications. Its annual production is around 18,000 pumps.

“It has an exclusive design team. The company is at present engaged in manufacture of pumps that range from 0.5 HP to 250 HP. We want to take to 500 HP,” he said. “FIPS will continue to function as an independent entity and its current management team would continue to manage the operations of the company. We have, by this acquisition, entered into technology transfer agreement from FIPS to CRI Pumps (India).”

Citing a report, he said the waste water pump market is valued at $8 billion globally and growing at a CAGR of 5.7 per cent for the period 2011-16. Municipal waste water plants contribute to 23 per cent of the end-user market followed by chemical, power and refining industries.

In India, nearly 3,800 crore litres of waste water is generated of which only a marginal quantity is treated. By 2030, the water demand in India is expected to grow to 1.5 trillion cu m with supply limited to only 740 billion cu m, leading to a shortage of nearly 50 per cent. The demand for waste water pumps and treatment products is therefore expected to soar, he said.

On performance, he said CRI Pumps clocked a turnover of ₹1,025 cr last year. ‘We are targeting to reach ₹2,000 cr in three years.’’

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