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CRI Pumps is all set to embark on the next level of growth with the setting up of a wholly-owned subsidiary in the US and Mexico.
The Coimbatore-headquartered fluid management solutions provider has hitherto been supplying its range of products in the US through distributors.
G Soundararajan, Vice-Chairman, CRI Group, told BusinessLine that the company, with a view to reducing the lead time from 120 days to less than 5, and cater to the US market requirements decided to set up its own assembly plant in the US and Mexico.
“We have been working on this for close to a decade. We now have the necessary certifications - sanitation and food and safety standards - in place; in less than six months will commence assembly of certain products in addition to supplying groundwater pumping system, waste water pumps, pressure boosting and industrial pumps. The facility will help enhance our technical and application support and cater to the new value added segments as well.
“The products launched in these markets include specialised pumps for mining applications, chemical process pumps, industrial pumps with IoT (Internet of Things) enabled health monitoring systems and encapsulated submersible motors fitted with lightning arrestor- developed by the R&D division of the company for the first time in India.”
The investment on this facility (at Houston in the US and Mexico) is estimated at around $5 million.
The company is planning to establish one more facility in California in six months. “We will be investing more going forward,” Soundararajan said.
The company is targeting an annual turnover of $10 million from these markets in the next three years.
The group currently has facilities (wholly-owned subsidiaries) in Spain, Italy, Brazil, Turkey, China, South Africa and UAE.
CRI group achieved ₹2,100-crore business in the just-concluded fiscal. Income from international business is said to have accounted for 16 per cent of the total.
It is aiming to more than double the turnover to ₹5,000-crore mark by 2022-23.
“Around that time, our export turnover could be 50 per cent higher than the domestic growth. The potential is huge,” the Group’s vice-chairman said.
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