The Indian Pumpindustry is growing at an annual CAGR of ~10%– which is higher than the international CAGRaverage of ~6% –due to the surge in infrastructure development, growth in agriculture and other water intensive industries.

The Indian Pumpindustry offers among the highest net value additions in the engineering industry – of over 20%. Moreover, the domestic market for Indian Pumps is growing at a healthy rate of 16-18% per annum.

India today:

  • Exports pumps to 100+ countries
  • Is totally self-sufficient in
    • captive power generation
    • pulp and papers
    • energy efficient pumps in utilities and agriculture
  • Is almost self-sufficient in pumps for nuclear power

A number of Indian Pump manufacturers are focusing on Bio-Pharma applications, such Infusion Pumps, among other things.

Indian Pump Industry – Market Size

  • The Indian pump market was worth over US$ 1.2 billionin 2014 (i.e. over INR 8,000crore)
  • India has over 800pump manufacturers
  • India manufactures more than 4.5millionpumps every year
  • Among ‘machineries’, Indian pumps are produced and used in largest numbersafterelectric motors
  • The Indian Pump industry offers excellent growth opportunities for international collaborations
  • Indian Pumps are exported tomore than 100 countries

Indian Pumps – Market Segmentation by Share & Value

Market ShareValue
  • Agriculture
27%INR 2295 crore
  • Building Services
19%INR 1615 crore
  • Water & Wastewater Management
17%INR 1445 crore
  • Power Generation
12%INR 1020 crore
  • Oil & Gas
8%INR 680 crore
  • Metal & Mining
4%INR 340 crore
  • Others
13%INR 1105 crore

Agriculture andBuilding Services comprise 46% of the market by value (INR 3910 crore). This segment ofthe Indian pump market is highly fragmented as well as competitive – with a large number of small and medium enterprises (SMEs) competing to increase their market share.

The biggest marketsfor agricultural pumpsets are the central Indian states of Madhya Pradesh, Maharashtra, Tamil Nadu, Karnataka and AndhraPradesh.

The Industrial Sector comprises the remaining 54% of the market by value (INR 4590 crore). This segment of the India pump market consists of sectors like Water&Sewage Treatment, PowerGeneration, Oil &Gas,Metals &Mining andOthers. Being technologically intensive, it is a relatively hard sector for small and medium enterprises (SMEs) to penetrate.

Top Indian Pump Companies by Market Capitalisation (BSE)

  • KSB Pumps
  • Dynamatic Tech
  • Kirloskar Bros
  • WPIL
  • Shakti Pumps
  • Yuken India
  • Roto Pumps
  • Bemco Hydraulic

Indian Pumps – Market Segmentation by Pump Type

  • Centrifugal Pumps                                           ~95%
  • Positive Displacement Pumps                          ~5%

Indian Pumps – Key Strengths: Why Make in India?

  • India offers among the highest net value additions in the world(20%-plus)
  • A ready export market in 100-plus countries
  • 16% of India’s pump manufacturing capacity is geared for exports (and growing)
  • Healthy domestic market for pumps in India – US$ 1.2 billion-plus (INR 8,500-plus crore)
  • Above-average growth– projected at a CAGR of 10% from FY 2014 to 2017
  • Technological capabilities to meet the highest quality standards – such as ISO 9000, ANSI, API or EUNO series
  • Proactive government policies to stimulate agricultural growth (and demand for pumps), through:
    • subsidized electricity
    • exemptions on use of solar water pumps

Such policies have inspired farmers to install independent irrigation facilities to ensure consistent availability of water. As a result of these schemes, the demand for water pumps has increased significantly.

  • Rapid growth of the Indian chemical market has stimulated the demand for high quality industrial pumps
  • The growing demand for lower cost of operation and zero downtime pumps gives India a competitive advantageto offset the labour cost advantage offered by low-cost/low-quality manufacturers in some Asian countries

Indian Pumps – Growth Opportunities

70% of India’s US$ 15 trillion GDP projected for 2030will have to be supported by urban infrastructure – and will require massive doses of investment in urban infrastructure. The other growth drivers for Indian pumps include population growth, higher water-intensive food consumption, industrialisation, growing public awareness about drinking water quality, decreasing water quality, lower water levels, and environmental pressure from government bodies on wastewater discharge, thereby amplifying the demand many times over for the recycle and reuse of water.

  • Sustained medium to long term demand from
    • Infrastructure
    • Energy
    • Roads
    • Ports
    • Irrigation
    • Agriculture
    • Manufacturing
    • Water Supply
    • Sanitation – which alone will require a USD 1 trillion investment by 2017
  • The Government of India is actively encouragingtechnology development and transfer to enable the small scale sector (i.e. small pump manufacturers) to enter high-tech areas such asaerospace and defence
  • Indian companies are increasingly looking for international partnershipsvia technology collaborations to enter foreign markets
  • Many small scale pump manufacturers have created price sensitive offerings as viable alternatives to costly pumps manufactured by large pump manufacturers
  • The Indian chemical market– growing at a rapid pace – is fuelling the demand for industrial pumps
  • Government regulations and energy crisis are motivating water pump manufacturers to develop energy efficient products

The Government of India has introduced several policies to promote agricultural growthin the country. These policies range from subsidized electricity to exemptions on use of solar water pumps. The announcement of such policies has inspired farmers to install independent irrigation facilities to ensure consistent availability of water. Consequently, this is pushing the demand for water pumps in India.

Government Initiatives to Promote the Indian Pump Industry

  • The Government of India envisages the installation of 1,00,000 solar water pumps for irrigation and drinking water purposes across the country.
  • India’s industrial policy actively supports the small scale sector – which is the backbone of the Indian engineering sectorand contributes significantly to India’s engineering exports – via Government funded R&D collaborationsthrough SiTarc, Coimbatore, SIEMA, CSIR, Ministry of Science & Technology, etc.
  • PCPIR (Petroleum, Chemicals and Petrochemicals Investment Region), an initiative taken by Government of India,is specifically designed to encourage foreign investment in petroleum, chemical and petrochemicals sector. This is expected to accelerate economic growth and positively impact the demand for water pumps in India.

Industry Clusters – Indian Pumps

Some of the major industry clusters for pumps in India include:

  • Coimbatore
  • Belgaum
  • Batala & Jalandhar
  • Kolhapur
  • Rajkot
  • Ahmedabad
  • Hyderabad

Quality Certifications for Indian Pumps

The Indian Pump industry complies with highest quality standards – such as ISO 9000, ANSI, API or EUNO series. For instance:

  • The indigenously manufactured Fuel Booster Turbo Pump was used in ISRO’s Cryogenic Engine
  • India operates some of the world’s best performing space rockets ‘PSLVs’ on Fuel Booster Turbo Pump technologies
  • Indian Pumps are extensively used in Indian refineries, includingthe Reliance Refinery – which ranks among the top 5%in the Energy Efficient Index of Shell Benchmarks

International Recognition for Indian Pumps

Indian Pumps are globally accepted for their quality.

  • Lowest Life Cycle cost (LLC) Pumps, which are highly demandedglobally on account of sustained energy efficiency and lower maintenance costs
  • Vertical Execution Multi-Stage Multi-Outlet (MSMO) Pumps, which are ideally suited for high rise urban development projects because they require less space
  • Concrete Volute (CV) Pumps, which are extremely reliable and cost effective, and ideal for handling large volumes of water

Some of the other important products manufactured in India include solar centrifugal pumpsand solar power conditioning units– which have helped savemillions of units of electricity annually.

Energy Efficient Systems and Intelligent Process Equipment Systems are being integrated to meet international demands and retain cost effectiveness for domestic industrial and infrastructural goals. Kirloskar Brothers Ltd., a globally renowned Indian pump brand, recently created a record in its all-women Coimbatore plant by successfully reducingits “assembly time from 60 seconds to a record breaking 20 seconds; thereby increasing the plant production to 34 000 pumps per line per month”.

Indian manufacturers of various types of Pumps