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Water pump maker taps growing high-rise market |
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The Danish water pump manufacturer Grundfos (Thailand) plans to tap into the residential market and hopes to become the fourth biggest player domestically with 20% sales growth this year, said sales director Somnuk Sirijarusvong. ''Our focus is the high-rise building market, which has a business cycle of a few up years and a few down years. The high-rise building market is quite limited,'' he said. As a result, the company aims to offer more mass-market products. Last year it expanded its office to tap the new market. Target buyers would be new residential projects and existing homes that needs to change their water pump, he said. The company will spend 30 million baht on advertising and marketing this year. It has also introduced low-cost units that are 40-50% cheaper. Though the new price remains 20-25% higher than those of major competitors, the company is confident in its industrial-grade materials that are less noisy and more energy-efficient. ''Many people, even the Metropolitan Electricity Authority, want their air-conditioning systems, refrigerators and electrical fans to be number-five energy saving appliances. But water pumps consume 20-30% of the energy used in a house,'' Mr. Somnuk said. During the first four months of the year, Grundfos achieved sales of 260 million baht, 20% higher than targeted, after it expanded its marketing. It expects to have 800 million baht in sales from 14,000 water pumps, up from 7,000 pumps sold last year with a sales value of 700 million baht. Last year 200,000 water pumps were sold in Thailand – 100,000 units from the market leader and 70,000 from the number two company. Grundfos ranked number eight in the market but expected to become one of the top three next year, said Mr. Somnuk.
Mr.
Somnuk said the company was focusing on the Hua Hin market
due to its popularity as a resort destination. |
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Bangkok Post, 06.06.2008 |
