Avinash Jain writes about the pumps industry commanding a net worth of more than Rs. 25000 million and being an important cog wheel in the workings of sectors thereby emerging as one of the most significant contributors to the Indian economy.
In a country which is agriculture and industry dominated, pumps play a very important role in forwarding the businesses of the said sectors. Being an important cog wheel in the workings of sectors like agriculture, production of oil and natural gas, petroleum refining, petrochemicals, power generation, the pertinence of pumps can be understood from the fact that in itself this sector commands a net worth of more than Rs. 25000 million and is one of the most significant contributors to the Indian economy.
With over 500 small, medium and large manufacturers being functional in the sphere, the pumps sector is spread over both organized and unorganized sector. These manufacturers design and product pumps which service organizations in varied scales which feature pumps from a fraction of horsepower to pumps whose ratings go upto two to four megawatt. This demand of pertinent pump solutions emanate from the fact that due to rapid development and urbanization the water table of the country is rapidly diminishing which is on the flipside creating immense demand of pump sets in the country. It is this demand that the pump manufacturers in the country are addressing with varied models of pumps which guarantee uninterrupted water deliverance every time.
India at the present moment boasts of a significant pump manufacturing industry which is composed of both Indian and international players being there in the market. With strategic inputs, planned investments and favourable governmental policies, the future augurs well for this opportunity-filled market. An inherently mature market, the Indian pumping sector has seen fair sales over the past years which are expected to hover between 10 to 14 percent in the coming years. Currently pegged at a growth rate of 16 percent in domestic sales, experts believe that this market will churn production anywhere between 2 million units to 2.5 million units in the coming years, which will increase the suitability of the market.
Being a fairly need-based market, the domestic pump market’s 95% consumption is met by local producers, with more international producers catering to bigger clientele. With developed mechanisms including industrial pumps for infrastructure needs, and domestic pumps for consumer & agricultural needs churning out technologies like displacement pumps like rotary, reciprocating & peristaltic and general centrifugal pumps like single-stage radial, submersible, multi-stage radial, axial & mixed pumps; the Indian pump industry today caters to the needs of every consumer and delivers one of the most efficient quality effective product line.
Looking forward to the planned investments by government & corporate entities and favourable governmental policies upcoming in the near future, the coming times augur well for this sector wherein, India is on a surge in becoming a global economic superpower based on its constant progresses in the field of production, business and economy.
Here is a quick look through into the factors driving the growth of pumps market in India:
• Expansion in Infrastructure & real estate development are some of the major factors influencing the growth of the pumps market
• Erratic monsoon climate and scarcity of water across areas in the country provides a major opportunity for continual market growth
• Fluctuations in ground water level have also facilitated further development of the market leading to more demand in the market
• Rising population & urbanization boosts the demand for pumps in the market
• Healthy economic outlook also stimulates the growth of the Indian pumps industry
With development, challenges also abound, and being true for the Indian pump industry, here are a few challenges which threaten to impede the growth of the sector:
• The players operating in the market facing some acute challenges like governmental policies, taxation regime and lack of investments which are hampering their development and growth
• Agricultural power subsidy & farmer sops pose a major hindrance in market growth
• Consumer outlook prevalent in the market is another major challenge
• Rise in cost of inputs act as a major bottleneck in the development of the Indian pumps industry
• Initiatives and regulations prevalent in the market too have an impact on the growth and development of the industry
While positives and negatives abound in this sector, initiatives going forward should be capitalized upon creating a value-stream of investments and inputs into this industry to keep up the progresses. While the domestic manufacturers have their work cut out to better their product line quality and create a world-class stream of pumps, the government should also bring in remedial measures to reduce the dependency on foreign imports by liberalizing the input of newer technologies to the domestic product range to bring it at par to international standards.
The country’s resilience in facing international financial downturn is a huge indicator to the country’s economic morale where the surge of domestic players in varied sectors have helped outline a more composite culture of economic stability. While other sectors which inherently depend upon domestic productions doing well in these trying times, there is no reason not to believe that the Indian pump market cannot do the same. For the same, the association of Indian pump manufacturers should come forward to streamline the requirements and goals of the sector and should clearly channelize their synergies to take the sector forward. These initiations will definitely go forward in creating a more inherent line of operation for the sector and will definitely open up newer vistas of the growth of the industry. With optimism for the bloom of the sector, it is just an inevitable wait for the pump manufacturers to see the industry attain its actual worth and become the lead contributor the new generation of the country’s shining future.
(The author is Managing Director, Arise India Ltd. The company is one of India’s largest integrated manufacturers of submersibles, monoblocs, inverters, batteries, gas & electric geysers from past 25 years.)