Bussines Line reported that the CRI Pumps Private Ltd will soon manufacture and market steel valves. The company is setting up a 500 tonne dedicated steel foundry and valves manufacturing unit.
Mr G Soundararajan vice chairman of CRI on the sidelines of a seminar organized by the Hosur Chapter of Madras Management Association said that the company’s the company recently started making butterfly valves as a forward integration initiative. He said that from the Q2 next year it will introduce ball and check valves manufactured at the new facility.
Mr Soundararajan said that the new foundry will also support the existing steel pump manufacturing division of CRI, which now out sources steel castings. It has also ventured into industrial applications such as sewerage and in line pumps, which are made of steel castings. This has increased the demand for steel castings.
He said that the industrial segment is alright now but it may be hit by the recession soon. He further added that on the export front, the company gets equal share of revenue from all the three segments agriculture, residential and industrial. It exports to over 70 countries and plans to improve the share of business from the US.
As per report, the INR 400 crore company has a 1,000 tonne grey iron foundry for captive consumption. CRI makes about 60,000 pumps a month and expects to grow 25% after commissioning the new plant. This year, its turnover is set to cross INR 500 crore. The company’s revenue from exports will double to 20% of its turnover this year. In the domestic market, revenue from agriculture constitutes about 50% of its business, residential segment 35% and the balance is from industry. Agriculture continues to be good but the residential market has dropped in the last three months due to slowdown in the economy.