New Grundfos CEO Outlines Company Strategy for U.S. Press

Mads Nipper, newly appointed Group President, CEO of Denmark-based pump giant Grundfos, met in Denmark on Oct. 8 with members of the U.S. trade press to discuss his plans for the company and participate in a Q&A session.

During the 45-minute meeting, Nipper revealed how he plans to leverage his 20+ years of experience as a LEGO Group executive in his position at Grundfos, one of the world’s leading pump manufacturers. He replaced former Group President, CEO Carsten Bjerg in August.

Mads Nipper, CEO of Grundfos

Acknowledging a slight flattening in Grundfos’ worldwide growth that he said was partly caused by turmoil in Russia, Nipper added that the company should do better. “Not because we want to make the owners of the company, which is a foundation, richer” he said, “but because we need to take a long-term perspective on the business. The only way we can do that is by making money, which allows us to invest in the future.”

Nearly two-thirds of Grundfos’ profits are devoted to research and development, Nipper noted, an amount that is about twice that of its average competitor. “We want to be the one that sets the industry standards,” he said.

Nipper said Grundfos plans to strengthen its presence in the U.S., which currently accounts for less than 10% of its global business. To do this, they’ll expand sales and advisory teams, and work to shed more light on the role pumps play in saving energy. “Pumps are to a large extent one of the most underrated contributors to load sustainability,” he said. “Things like solar panels and wind turbines are much more iconic.”

Grundfos plans to increase its focus on what Nipper called “localized solutions” that stress the company’s ability to serve pump, sustainability and water-treatment needs in wide-ranging markets from commercial buildings and industry to water utilities. He will also borrow a LEGO strategy to position the company “beyond the product itself” by getting closer to customers and making them aware of Grundfos’ “world-class service, different business models and ability to be more flexible than everybody else.”