Avinash Jain explains that the increased demand for water creates an indirect demand for pumps, which further creates a demand for advanced pumping machinery which produces more water by consuming lesser resources.
India which is today home to more than 1.2 billion people has huge demands from the available resources which are already stretched to the maximum levels. In here while land resources are still being regenerated, water resources are the ones which face the maximum pull because of the increasing requirements. Water is known as the number one requirement for sustenance, where population explosion along with rapid modernization and urbanisation has increased the demand for water exponentially. In here, the increasing demand of water for consumption, sanitation and sustenance has made it imperative to search for newer vistas of water generation which looking at the depleting water tables, has refocused on the urgent needs for new vistas of pumping.
This increased demand for water creates an indirect demand for pumps, which further creates a demand for advanced pumping machinery which produces more water by consuming lesser resources. It is thus that while the industry outlook is a positive one, there are numerous growth drivers which going forward will help sustain the relevance of the sector. Drivers like increasing population; focused water relative food consumption patterns, industrialisation & urbanisation and depleting water resources are fuelling the needs of cutting-edge pumps that are becoming one amongst the major needs of the concurrent times.
An industry that is worth more than Rs. 8000 crores, the Indian Pump Industry is focused mainly on two pump technologies – Centrifugal Pumps and Displacement Pumps. Servicing wide-ranging industry verticals like Agriculture, Power & Power Generation, Oil and Gas, Food and Beverages, Water Processing, Chemical & Hydrocarbon Processing amongst other industries; pumping machinery have become the main stays of Indian economy that have enhanced the suitability of the fluid-handling product sector of the country.
While issues plague the growth of the sector, some major ones like wastage of water, absence of water loss monitoring and lack of regulatory binding, overexploitation of groundwater and reduction of groundwater levels and climatic changes cut a sorry figure for the sector.
Thus the urgent need today is to become one with national policies like National Water Mission and Water Policy and Action Plan for India 2020. While the National Water Mission seeks to improve water-use efficiency across the country by nearly 20% in the coming years, the Water Policy as a vision of 2020 seeks to involve communities and people for optimum management of water resources.
Today emergent globalisation has enabled widespread availability of production grade raw materials, because of which manufacturers are able to produce better quality pumping products and fulfill the need of consumers. While international pump manufacturers have till now enjoyed the advantage of cheap labour and readily available raw materials, the opening up of world economy has ensured that the Indian manufacturers are now playing on level grounds. Today factors like effective operational abilities and reliable & performance oriented designing have enabled Indian manufacturers to deliver a product line that is at par with international standards. This augurs well for the Indian Pump Industry which has since its inception being stuck down by a largely unorganized setup that has shackled the growth of the sector.
We believe that going forward, the domestic manufacturers have to up their product quality and focus more on creating localized technologies that reduces the dependence on imports from foreign countries. By creating significant growth drivers for the sector which include the incorporation of newer technologies we can reduce the dependency on foreign players and thus create a price-efficient product line which enables us to reach out to potential untapped markets and serve their emerging requirements.
Apart from saving essential foreign exchange by reducing imports, an enhanced pump technology can also help the sector earn critical foreign exchange in ways of exports to a wide market base across the world. Today with depleting water resources being a perennial issue world-wide, we believe that the scope of expansion of Indian pump industry is humongous.
In the sectoral view, the impetus going forward should be focused on developing energy-efficient technologies, and reduce the utilization of non-renewable sources of energy. We are of the opinion that going forward the industry’s impetus should be on creating an energy-efficient line of products which will help take the sector deeper into the consumer market of the country. In here, the utilization of energy-efficient materials will surely play a greater role in the coming future, as today the consumer looks for products which offer them all-round savings.
There are numerous positives and negatives of the sector which we believe is necessary for the creating a churn in the sector. And by delving into the above proposed initiations, the sector will definitely be enabled to create a more holistic line of operations. As envisioned by the Hon’bl Prime Minister, we are not far away from creating an empowered India that creates its own production; we believe that day is not far when the Indian Pump Sector realises its true potential and becomes a lead contributor of the India’s success story, the world over.
(The author is Managing Director – Arise India Limited.)