C.R.I. Pumps, India’s leading pump manufacturer, has signed a share purchase agreement with the shareholders of Fabbrica Italiana Pompe Sommergibili Srl (FIPS) of Milan for acquisition of 100 per cent of the share capital of the company. This acquisition will enable CRI to scale new heights in embracing innovative technologies in sewage, effluent, drainage and waste water handling solutions for municipal, industrial, residential and building applications. This is the second acquisition after its recent take-over of Pumps & Process Systems Ltd. of the UK.
Founded in 1978, FIPS has an established track record of performance in waste & sewage water pumps across the globe. FIPS products have their presence in Italy, Western Europe, Eastern Europe, the Middle East, South Africa, China and several other countries. The products are known for their premium quality, high performance and efficiency and trouble-free operation.
FIPS pumps range from 0.5 hp – 250 hp with Vortex, grinder, single-channel and multi-channel impellers and discharge size of DN-50 to DN-400 mm. These pumps fully meet the demand for municipal, effluent and industrial applications and are ably supported by mixers, guide rail system and accessories to offer total solution.
As per the Mcilvaine research report, the waste water pump market is valued at $8 billion (around Rs. 48,000 crores) globally and is growing at a CAGR 5.7 per cent for 2011-16. Municipal waste water plants are the major users, contributing nearly 23 per cent of the end-user market, followed by chemical, power and refining industries witnessing huge purchase of waste water pumps. The Asia-Pacific region is the key growth market, China and India being the toppers in the list.
In India, an estimated 3800 crore litres of waste water is generated of which only a marginal quantity is treated. The per capita water supply in India is 188.73 litres a day, of which 73 per cent becomes sewage generation, demonstrating the seriousness of the problem. By 2030, Indian water demand will grow to 1.5 trillion cub.m. with supply only 740 billion cub.m. This leads to a shortage of nearly 50 per cent. India is ranked third in water pollution based on the deteriorating quality of water ranking. Waste water reuse is a more economical measure. Hence the growing demand for waste water pumps and treatment products.
C.R.I. estimates the market size of sewage & waste water pumps in India to be around Rs. 500 crores and growing at an annual rate of 15-20 per cent as the waste water treatment sector has huge opportunities.
Speaking on the acquisition, Mr. Soundararajan, Vice Chairman, CRI Pumps Pvt. Ltd., observed: “CRI has been strategically focusing on different applications through organic as well as inorganic path. With the acquisition of FIPS, CRI will be launching the complete range of sewage and waste water pump solutions in India using the technology transfer advantage from FIPS. CRI, with its strong manufacturing and R&D capability, will be able to offer world class technology to meet the growing industry demands”.
According to him, CRI is committed to develop FIPS as a strong global company in the waste water and sewage industry. The current management team of FIPS will continue to manage the operations of the company, while FIPS will continue to function as an independent company taking advantage of its brand, technology and its global reputation. CRI is also planning to invest in FIPS to strengthen its manufacturing and research capabilities. The existing customers of FIPS will also be greatly benefited by this new acquisition as the company will be able to offer better services and products.
Mr. Orfeo Agostini, FIPS Managing Director, said: “With the takeover of the company by CRI, FIPS can further invest in new product developments to grow the global business while improving profitability by reducing costs through integrating the supply chain, making the products cost effective. We are excited by the advantages we will gain by bringing together the two teams with shared values and a commitment to quality, performance and customer satisfaction.”