Danish pump manufacturer Grundfos has restructured its regional operations as part of a strategy to drive growth across the Asia Pacific.
Announcing the restructure, Grundfos said the aim is to improve customer service, enhance organisational efficiency, and drive the next phase of growth in the Asia Pacific.
“Given that Asia Pacific accounts for the bulk of the world’s population and some of the fastest growing economies, the new structure aims to reinforce our market position for sustainable and profitable growth in the region,” the statement said.
Asia Pacific operations will now come under four geographical clusters including East Asia, South Asia, Oceania, and Indochina providing a stronger focus on local requirements.
Each cluster will report to Grundfos’ regional managing director for APREG and Indochina, Okay Barutçu, who is also in charge of emerging markets such as Bangladesh, Bhutan, Cambodia, Laos, Maldives, Myanmar, Nepal and Sri Lanka.
Grundfos’ regional managing director for APREG, Okay Barutçu, said the new structure considers the commonalities in technological requirements, as well as cultural, demographical profiles that exist within each geographical cluster.
He said it allows Grundfos to concentrate on opportunities and challenges that are unique to each cluster.
“In Japan, Korea and Taiwan for example, where pumps run on 60Hz electric motors, it makes sense to localise the engineering expertise for our 60Hz product range to reap better operational synergies and deliver more agile technical support to our East Asian customers,” Barutcu said.
With resources dedicated to the needs of each geographic cluster, Grundfos is expecting to do more in the region, for the region, by increasing assembly and production facilities for local requirements.
“What this means is better availability of product and information, improved support and service, swifter response times and a deeper understanding of local challenges that will translate into pump systems and water solutions that are relevant to our customers,” he said.
As part of the restructure back office functions such as finance, accounting and HR will be centralised for improved resource allocation.
It will also optimise supply chain management, secure its cost base and foster collaboration across functions and geographies.
Barutcu believes the new structure will encourage employees to expand their horizons in terms of roles and responsibilities and acquire new competencies.
“To execute our strategies and drive the next lap of growth, strong and experienced teams are extremely critical,” he said. This is why managing diectors were appointed to lead each cluster.
“People development and capable leadership are important focus areas,” he added. Grundfos also plans to offer a wider range of solutions to broaden revenue streams in each cluster.
Barutcu said Grundfos will be focusing on the emerging middle class and commercial and domestic building segments, while intensifying its drive on energy efficient products and water utilities for flood control and water treatment applications.
He said there are also plans to elevate after-sales services into a business in its own right where maintenance service contracts, pump audits and energy checks, replacement, upgrading and commissioning services offer fresh opportunities for business growth.
Grundfos is looking to double revenues in APREG over the next five years. This will include a new sales office in Sri Lanka as well as a local presence in Bangladesh and Cambodia.
Grundfos operates 12 sales companies, 13 production facilities, and local offices in 22 countries across APREG.
“With 70 years of global expertise and experience behind us, and the stronger organisational alignment that’s now in place, I am confident that we will ride the opportunities and challenges to achieve continued growth,” Barutçu said.