The three-year sole supplier framework agreement has a two year extension option.
Both companies will work in partnership to develop innovative ways to save capital and operational costs.
Grundfos Water Utility director Andrew Ball said: “We have worked hard to develop a delivery approach that supports Severn Trent Water’s stated needs in providing high quality products, logistics and technical expertise to ensure great customer service and reduced whole life costs. We are delighted to have been awarded this contract and look forward to working with Severn Trent and its stakeholders in delivering the objectives of the framework”