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Present Scenario The Indian pump industry is comparatively a mature industry and has a strong manufacturing base. It has large and medium scale manufacturers in the organised sector producing pumps for various applications at all price levels, besides there are hundreds of small scale units in the unorganised sector producing mainly pumps and spares for domestic and agricultural applications. About 12 lakhs pumps are produced every year. Though there are no established figures, the market is believed to be worth about Rs 2000 crore. The Indian manufacturers have always adhered to quality standards. Many companies have obtained the ISO 9000 certification. Some of the indigenously developed achievements include Sodium coolant and primary coolant pumps for nuclear power stations, concrete volute and large sized vertical turbine pumps for irrigation and thermal power stations. The indigenously developed polyester- coated, polypropylene wrapped winding wire for submersible motor is worth appreciation.
Challenges before the Pump Industry Indian manufacturers have to face several obstacles including labour issues and extremely high manufacturing costs on one hand and cheap exports on the other. The imports have been freed. There is a mismatch between the input tariffs for the raw material and the prices at which the pumps are being imported. The pump customer is also more aware and informed today. He is more knowledgeable on pump selection and maintenance and more demanding in his requirement, willing to pay higher price for efficiency and reliability. Constant availability of better pumps for a better price is the challenge the industry faces, the entry of foreign companies is likely to further hit the industry, margins are likely to be thinner as these pumps are priced more competitively with improved technology. Indian manufacturers perceive threats from Chinese and Taiwanese pumps as they may be not durable but cheaper as produced on mass scale.
Low Growth is major cause of Worry The low industrial growth is affecting the pump sector prospects. Reduction in the number of new projects is affecting adversely the growth of industrial application pump companies. Lack of fresh investment in the pump industry is the major cause for worry. Spending on research and development is low and the level of technology is not rising, as it should be. New product models and designs are not very forthcoming. In this period of low growths, a consolidation in the pump industry is expected. The current status of the Indian pump industry is highly fragmented. Large players, therefore view this situation favourably as the possibility of Mergers & Acquisitions is going to increase substantially.
The need of hour The manufacturing of medium technology pumps will have to be considered in India. pumps too will be selected. The market leader of most of the segments. Portals for trouble-shooting support will be on net for immediate customer service.in terms of volumes. Information technology will also be exploited to edge over competition. Green revolution prompted a spurt for agricultural monoblocs. Software programs for pump selection. sinking of groundwater tables caused spurt for submersible pumps. In a market with low growth rates and few new projects. They will be packaged to provide total solution for customer's specific liquid transfer problems. Agriculture Sector The growth can be envisaged in the Domestic & agriculture sectors . Skills for providing customer support in terms of application engineering will have to be developed. Indian economy was basically agrarian. Foreign companies will be looking at acquisitions in the Indian market for quick growth. As is being done for several products. documentation. Although prospects in agriculture sector depend on external factors like monsoon. New materials and material coatings are replacing conventional and expensive materials along with improvements in reliability and lifetime of existing pump designs for many fields of application.While the leading manufacturers are expected to increase their presence. This systems approach is welcomed by the clients who look for complete solution or turn key job by the vendor who can design. Key growth areas for pumps in India The growth in the pump industry is closely linked to the growth trends in the user industries. Over the years. install. spare parts support etc will be made available to customers. Indian industry has to adopt new techniques in pump production as implemented in developed countries The pumps will no longer be marketed as a mere hardware item. share of agriculture in GDP has also reduced but due to adopting new developments and cash crops by the farmers. lower water table and poor irrigation facilities by the . their income level has gone up. Innovations . the medium level will find difficult to survive. commission and complete the project. Kirloskar Brothers Limited has been adapting itself to becoming a project management company. In the early years after Independence. different trends have been emerging as players use a range of strategies to ensure their survival. configured and ordered through websites. even factors like investments and overall economic growth directly influence the pump industry. Supply chain management through ERP programs will make distribution more effective in terms of costs and availability. New product technologies are also coming in to the Indian market.
The overall segment is growing at around 10 percent annually. These include major areas like chemicals. others like paper and chemicals have been quite stable. sugar. Grundfos has been the most active amongst international players. paper and pharma. but the kits manufactured in the unorganised sector have spoilt the market. Credit goes to Indian manufacturers for developing field rewindable and hence user friendly.the segments of Agriculture & domestic can be affected. These are low efficiency pumps. efficiencies and reliability. A highly attractive segment. combined cycle power generation and paper recycling coupled with evertightening. Population keeps growing. wet motor designs for submersible pumps which can work against vagaries of power supply. Major competition from China on pumps produced in large volumes . But again. pumps for residential applications are having good demand. About 80 percent requirement of submersible pumps comes from agriculture sector. consume high power and produced locally without paying taxes etc. Industrial Scene The industrial segment includes pumps for various water movement and process applications in different industries. With its leading technology and product innovations. Residential Segment The domestic segment has seen the entry of a number of multinationals as well as smaller players with new designs and product features. According to survey. While key sectors like power and pharma have been growing. Such players may not last for long but they end up spoiling the market and hurting the established players. fertilizers.government has encouraged them to go for own water sources. it is targeting the domestic segment. Important industry trends such as better water management and conservation and re-use. It is expected from the Government that some action will be taken up immediately to curb this menace. the growth rates have gone at 10-12 percent as due to water shortage in urban areas number of private borewells are increasing. there is always the lurking threat of the Chinese dumping. Traditionally. Lower initial investment supercedes everything therefore such manufacturers are cornering major market share. Farmers are attracted towards such pumps for their low price. Urban water treatment and wastewater treatment equipment market is likely to reach a year -on-year growth rate of about 16 percent by 2005. they are not much concerned for low efficiency as power in most of the states is subsidised to the agriculture sector and rates are fixed for different ratings. The sewage treatment segment is set to grow at a faster pace. environmental norms. As a result many companies emerged in the organised sector who produce good quality and efficient pumps. this led to sudden spurt in demand of submersible pumps in the last two decades. . standard of living is becoming more consumptive so demand ought to be growing. the customer buys the cheapest product without considering the life cycle cost. promise a reasonably good potential for pump companies to play a vital role in future.
Africa and Middle East and also for buy backs and re-export.. . there are several small scale units in various parts of the country who are producing world class castings with excellent machining capabilities as per orders in their hand from developed countries. U S A and France to sign contracts with other Indian companies to get components or whole units as buyer seller relationship or buy back arrangement with technical collaboration. till 1960 export was very dormant. Besides companies in the organised sector. With the excellent engineering expertise available in the country along with cheap labour. To overcome this. Design modifications are always required due to poor power supply and other ground realities. The entire product range in the form of whole units or components were manufactured in India for the world market. KSB AG is using excellent engineering and technical expertise of its Indian subsidiary KSB Pumps Limited as a global sourcing base for selected European markets. A number of Indian manufacturers are looking at the export market. Setting up of a joint venture with major foreign equity share is more beneficial and a long term strategy. submersible and even special application pumps. conversant to English language also gives them slight edge. Mather and Platt Pumps Limited have won big orders in water and sewage handling in the Gulf countries. Export of pumps received a big boost In 1975 when Kirloskar group signed agreement with UK based company. This success encouraged manufacturers from U K. The globalization of Indian economy has developed keen interest in the International pump community. it is not workable to import pumps here and market. It is worth mentioning that Indian players often enterprises in reverse engineering at very competitive costs. where they get better margins. particularly for submersible pumps. Since growth is not forthcoming in India. There are many other companies who are exporting centrifugal. International players are planning to set up a manufacturing base here and cater other markets in South East.Indian companies in the Global market India has been importing pumps in a big way until independence and exports had started with small pumps for irrigation to Africa and Middle East. Far East. manufacturers are taking keen interest in exports.
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