DESMI India: contributing towards a better tomorrow

DESMI India: contributing towards a better tomorrow

DESMI India: contributing towards a better tomorrow

Pumps are essential components to transport liquid from one place to another by creating a suitable pressure head. Pumps are classified into two categories namely centrifugal pumps, and positive displacement pumps according to their working operations. Centrifugal Pumps are used to transport the large volumes of fluid and pressure heads and for wastewater purpose, and industrial liquid transportation in the power, steel, agriculture, and other domestic sectors. Positive displacement pumps are mainly utilized in the industrial sector where consistency of fluid flow matters more than volume handled during the transportation. The Centrifugal Pumps accounts for the largest market value share of 90.9% while the Positive Displacement holds the rest of the share in terms of revenue.

In the last two decades Middle East, GCC countries, India, and China have made heavy investments in infrastructure, sanitation, and water and waste-water management to support the growing regional urbanization. As more and more sectors are getting connected to the electrical grids, the electricity demand is increasing across the world and strengthening the global power sector; with pumps being an integral part of power plants, the developments in the power sector will make significant contributions in the growth of the global pumps market by 2024. Rising industrialization and large-scale construction activities are likely to fuel demand for pumps. The global sales of the industry are expected to reach $49.40 Bn by the end of 2024, at a CAGR of 4.6% during the forecast period (2016–2024) according to a report by A Ken research report states that the Indian Pump industry is growing at an annual CAGR of 17.5% in terms of revenue.

To cater to the demands of the Industrial Revolution 1.O Europe, DESMI was established in Denmark in 1834 and since inception retained a long legacy of supplying good, reliable solutions, maintaining an innovative approach and utilizing the opportunities on the global market. Due to economic liberalization and government's initiatives, the demand for quality products increased in India. Hence, DESMI India came into existence in 2014, in the form of the fourth facility of DESMI globally. The market responded overwhelmingly, and DESMI India grew with an annual growth of more than 100% for the past five years. The firm was established with the mission and vision to develop, manufacture, sell and service pumps and pumping systems, environmental equipment(s) and special products and focus on customers' needs – to generate further sustainable and viable growth in activity and profit in the group, operating as one Global Company.

There are 800 Pump Manufacturers in India producing 4.5 Mio. / Year. The exports constitute to 16% of the total sales touching over 100 countries. DESMI is into very specific segments such as Marine & Offshore – 0.5% of total Pumps Market, Industry – 15% of the total Pumps Market, Defense & Fuel – <0.1% of the total Market. In Oil Spill Response, DESMI is the only full-line manufacturer and supplier of Oil Spill Response equipment in India and has the maximum market share. DESMI is a top global brand in the Oil Spill Response equipment.

We recently caught up with AVSN Murthy, Managing Director, DESMI India LLP, for a conversation. Here are the edited excerpts.

Fruits of key management's expertise and the challenges faced

From a small cubical start in 2013, we have opened a Liaison office in 2014 and set up a Manufacturing and Assembly plant in 2017. Since the initiation of India operations, we have tripled our turnover and are the leaders in Oil Spill Response Equipment, followed by Marine and Defense Segments.

The very frequent questions by the customers in India were about local presence, delivery time, price and of course to service hem when the need arises. We addressed the issues one by one and committed ourselves to set up the factory while making no compromise on the global quality norms.

Customer base and Uniqueness

We used our global references to bag a big order from Cochin Shipyard for INS Vikrant, the first Indigenous Aircraft Carrier of India, and our team started making more Face to Face contacts with the customers and initiated several marketing campaigns like conducting Hotel Seminars, participating in Expos and other places.

We are into very specialized market segments like Marine, Offshore and Defense for Pumps, Fluid Transfer Solutions and Aircraft Refueling Systems. We supply Industrial Centrifugal, and Internal Gear Pumps to the Industrial Segment while we are global leaders in Oil Spill Response Equipment with the major market share in India as well since DESMI India's inception.

Sales model

All the quotes that we offer to our customers are solution driven, and we are proud to serve our customers with customized products which cater to their technical problems. DESMI have engineered products, and we cater direct sales as it requires a good amount of technical know-how to understand the application. However, for the Industry segment, we are looking at promoting our products through Channel Partners and distributors for a good reach to our client base.

Secret recipe behind the success

The customers are the core of our organization. We create value for them and aim to be and remain the preferred partner providing flexible and innovative solutions that support our customers' future needs. Our high-quality products and solutions offer low life-cycle cost with service as our attitude and high delivery performance. We meet our customers' expectations by listening and communicating openly. We are reliable in partnership and do what is right for the customer by providing the right solution through our expertise and trustworthiness.

Employees working together are the firm's most important asset – "the whole is greater than the individual." We welcome changes and opportunities and provide an informal and open working environment. We continuously try to improve our processes and solutions by embracing new and better ways of doing things. We make room for personal development, provide freedom with responsibility and respect diversities and cultural differences to encourage teamwork.

DESMI's shareholders are focused both on short, medium and long-term business development and value creation. We will secure sustainable development of DESMI ensuring a long-term relationship between revenue growth, shareholder value creation, and profitability and a balanced risk profile in all activities. We define it as DESMI PROMISES and is the recipe behind our success.

Indian customers approach towards the price

Of course, high-quality conscious customers expect a higher level of reliability but price is a big factor in the buyer's perspective. We, however, are doing Human Engineering to serve our customers for what they want than what they are sold.

Hitherto Journey, Learning and the biggest dream

The journey has been a quite challenging and much bigger responsibility now, not just our family but the entire fraternity of employees, stakeholders, and all our esteemed customers whom we should keep in mind and give our best all times as DESMI BRAND AMBASSADOR.

Life in itself is a big teacher, and I have learned and evolved over the years. My single point agenda since I started DESMI India operations is to make DESMI India a market leader in its own segments. We want to emerge as a very responsible company in whatever we do to serve our customers as we need to protect the image of the company which has got a huge history of 185 years so far and many more years to come. Our journey in India has just begun.

Bursting the Myth of Sisyphus

In this VUCA world, this is a real challenge, to keep all the young engineers motivated as they are very quick in everything, they need quick results, it is all about the working environment. We always believed in an open work environment allowing the entire team to come up with new ideas and cope up with the peers. We are happy to head a young and dynamic team with an average age of DESMI Indian Team being 28 years. We motivate the team through continuous training and performance improvement programs such as Focused training at Global Centers, peer-to-peer learning programs on all aspects of business and many more while working as a family.

Recognition in the market

We operate in five different segments with its own set of competitors and challenges. We do not believe in talking ill of the competition, in fact, our focus always remains on our product strength, and we welcome healthy competition which is good for us to compare and upgrade our technology.  We always accept competition so that the customers are aware of the DESMI's quality from that of our competitors.

We have proudly served the Global customers which include the Indian Armed Forces with our innovative and high-quality products. We have a huge global presence with network and clients in 100+ countries and offices in 23 locations around the globe.

In recent years we have received various awards: –

  • Entrepreneur of the Year
  • The Danish Export Association's Annual Member award
  • DESMI was identified as one of "1000 companies to inspire Europe"

The selection committees highlighted their reasons for nominating DESMI: –

  • Very quick implementation of an innovative business concept
  • High growth in export turnover
  • Strong networking, both nationally and internationally
  • Strength in showing the courage, the will, and the ability to embrace the global market

DESMI has the maximum market share in Oil Spill Equipment, and we have supplied our products to almost all the major ports after setting up our Indian Operations and also to Indian Naval & Coast Guard Fleet. We are very proud of this achievement. We have made good inroads in the industry while working with a few Pharma companies by our centrifugal and internal gear pumps.

The Road Ahead

We are dedicated to establishing a strong platform for our India operations and are prepared to fund further necessary investments to support the market and our customers in the best way possible. Currently, we are investing in developing a proof of concept together with the Indian Government for a solution that converts trash floating on rivers to energy and further we are trying to close an acquisition deal to comprise another facility in India. We have also started a facility for Manufacturing and Assembly of pumps with a clear road map or milestones. The first phase of activity with respect to Oil Spill Response Equipment Manufacturing facility is finished. We have successfully delivered products from the Indian Facility and are now getting ready with the Pumps Assembly Centre with an advance Test Bed Technology for Centrifugal and Internal Gear Pumps, also to full fill the GOI's initiative, "Make in India."

DESMI is one of the oldest and most reputed brands in the Marine & Offshore industry. We are launching our new product line by upgrading full line supplier of Fluid handling systems to meet the IMO and US Coast Guard regulations in treating Ballast Water. We proudly announce that DESMI OceanGuard's Ballast Water Treatment Systems called CompactClean are now type tested and approved by Lloyds, IMO and are expecting US Coast Guard approvals very soon.

CSR Activities

DESMI supports the agenda of UN Global Compact, which means that we operate in ways that meet the fundamental responsibilities in the human rights area, labor, environment, and anti-corruption drive. We took part in Green Ship of the Future, with the overall aim to establish a network for research, development, and innovation within technology and methods for reduction of emission from ships. We are strongly focused on bringing more energy efficiency and sustainability in our products to bring down the environmental impact, delivery of pumps, and make them leakage-free. We deliver solutions that take care of some of the big global environmental challenges as efficient protection or clean up after an oil spill, treatment of ballast water onboard ships, cleaning of ship exhaust gas for NOX and SOX and finally cleaning up plastic polluting the rivers and oceans.

"Our Green profile is targeting some of the 17 UN goals for global Compact."

A piece of advice

My advice is stay focused, be sincere, there is no short cut to success, go through the grind, and build a career. In DESMI, we give all kind of freedom to our employees with support from global management. I am happy working with a young and dynamic team that works with commitment and passion in order to excel in their own segments.

Guiding Force

Murthy AVS

Managing Director

Murthy AVS is a mechanical engineer from Andhra University and the Managing Director of DESMI India. He is responsible for DESMI Pumping Technology and DESMI Ro-Clean India Operations. Murthy's previous stints were with Grundfos Pumps India as regional manager and later the head of Paper, Mining & Key Account Management department. He also worked for various other organizations like Carborandum Universal, Johnson Pumps and Hindustan Sealol in different capacities. Murthy's key skills are Key Account Management and Business Development in the Industry.

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