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A Summer Internship Project Report

On

“A Study on Pump Industry Dealers Market Research Reports & Analysis”

At

Taro Pumps, Texmo Industries

By
Swapnil Deshmukh
MBA
Prof. Swapnali Bhosale

Submitted to
“Savitribai Phule Pune University”

In partial fulfilment of the requirement for the award of Degree of Master

in Business Administration (MBA)

ACKNOWLEDGMENT
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I would like to express my gratitude towards for guiding me throughout the

project. I also feel thankful and express my kind gratitude towards our
Director Dr. Ajit Sane for allowing to conduct the project.

I thank all my friends for their positive support and guidance. I feel thankful to
the HOD and faculty member for giving me the opportunity. I ensure that this
project was done by me and is original.
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DECLARATION

I the undersigned solemnly declare that the project report is based on my own
work carried out during the course of my study. I assert the statements made
and conclusions drawn are an outcome of my research work.

I further declare that the work contained in the report is original and had been done
by me.

The work has not been submitted to any other Institution or for any other
University. I have followed the guidelines provided by the University in
writing the report.

Whenever I have used materials (data, theoretical analysis, and text) from other
sources, I have given due credit to them in the text of the report and giving their
details in the references.

EXECUTIVE SUMMARY

The internship is about sales marketing and developing businesses in rural areas. To do
marketing of organic products its need to do regular visit shop, take follow up of the
shopkeeper. Firstly, take all information of product and about the market of agriculture. The
business of sales marketing is not easy because lots of factors affect it. Do daily visit to shop
take information form them which product they required.

The company provides the same demo product to give demonstrations to wholesalers and
farmers. Company give information about existing customer we need to meet them and give
information take orders. And give information to the mentor about the order.

One of the most difficult tasks is to find new customers and build relationships with them.
Because of small size of organic market. Need to give all explanation about the margin to
shopkeeper. Explain about the product. On which crop products can be useful

Collect the farmer on farm land and give a proper demonstration of the product on the crop.
And take feedback form farmers note it in the notepad and decision it with mentor. If anyone
shows interest in buying the product, then connect the person with a senior person. It give to
lot of learning to me form that internship improve how to manage the work load, how
searching new dealer.
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TABLE OF CONTENTS

Sr No Content Pg No

1 Introduction Organization Profile 6

2 Organizational Profile 8

3 Objectives 11

4 Research Methodology and Data 12

Analysis
5 Data Analysis and interpretation 18

6 Conclusion 20
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CHAPTER 1: INTRODUCTION

There is a huge gap between supply and demand of electricity in India. The
deficit currently stands at approximately 8 percent annually. The gap can be
bridged either by increasing the supply by setting up more power generation
units or decreasing demand by consuming less power. Energy efficiency and
Demand Side Management are important tools to control the demand of
electricity. Agriculture pumping consumes 18 percent of electricity in India.
Hence the demand side management of agriculture pumps has the ability to
significantly diminish the demand-supply gap.
The present report, the Taro pumps commissioned to assess various parameters
influencing the demand and supply of agriculture pump sets in India, is based
on the primary information collected from various stakeholders associated with
the agriculture pump set value chain.
The study verifies the early hypothesis of study that agriculture pump segment
is highly fragmented. Market share of organized sector is 63 percent share by
value and 52 percent share by volume. The unorganized sector has very
significant hold in agriculture pump set market. The unorganized sector has a
strong presence in almost all the demand regions for agricultural pumps. Players
from the unorganized sector offer farmers cost-effective products by pricing
their pumps at 30–40 percent lower rates.
Study also collected demand side state-wise information to understand
difference in behavior. In the Eastern zone, West Bengal is the demand hub for
low-cost pumps. As a result, unorganized players dominate the local market.
This region is also a major hub for cheap imported pumps from China. The
North zone is characterized by a mix of national and regional players, which
varies with each state. Gujarat is characterized by the dominance of regional
players who have low awareness about the star rating. Farmers in Gujarat are
more inclined towards cost-effective pump sets.
Maharashtra has the largest number of pumps installed—approximately 32 lakh.
In Maharashtra, the local-made pumps or those manufactured by small players
from Ahmedabad are preferred due to their low costs. Andhra Pradesh has the
second highest agriculture pump installations with 27 lakh pumps. In South
India, farmers are now becoming more aware about star ratings, and are
accepting starrated pumps.
According to the opinion of farmers, low voltage capability of pump sets is the
most important attribute followed by warranty/guarantee, price, standards, after
sales service and higher water output. However, the opinion of retailers differs
from the opinion of farmers. According to the retailers, farmers consider price
as the most important attribute for pump selection. Word of mouth has the most
significant influence on brand selection by farmers followed by other
influencing factors such as retailer’s feedback, banner advertisement, television
and availability of retailer in proximity. Given the flat rate for electricity
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consumed in agriculture activities, farmers are found to be totally unconcerned

about electricity savings.
SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills and expertise. It
helps me in getting an idea of the pump industry and its importance in our life. It increases
my confidence on professional grounds by dealing with consumers that are very hard to
convince. As for the company & benefit, this project helps the company to know its market
condition and level of competition. Also, it helps in creating awareness to consumers
regarding our business and in promotion of their services.

In order to accomplish the objectives of the project a survey has been conducted
amongst customers of the pump market. The survey is based on a questionnaire that
helps in creating awareness among the customer about the profitable product to invest
in.
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CHAPTER 2: ORGANIZATION PROFILE

Name of the Organization: Taro Pumps, Texmo Industries

City: Pune

Pin: 412308

Main activity of the Organization: Taro Pumps, Texmo Industries in Pune one of
the branded pump Industries India. The Industry started from 1956 ad now most of
the India covered. They works on Monobloc, Openwell & submersible pumpsets

Name of the Head of the Organization: Santosh Shewale

City: Pune Pin: 412308

Head Office: Survey No 164, Khutwad Warehouse, Phursungi Village Rd, Hadapsar,
Pune

Telephone Number:

Reporting Date:

Working timings at the Organization: 9:30 AM to 6 PM

Texmo Industries History

1956
Mr R. Ramaswamy returns from an 10-year stay in England and a graduation in Electrical
Engineering from Sheffield University. He sets out to manufacture motors and pumps in a small
shed in Coimbatore. Texmo is born.
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Taro Pumps Achievement For Year 1956 Icon

Taro Pumps Achievement For Year 1958 Icon
1958
Our first ever dealer is appointed. Coimbatore, Salem, Madurai, Trichy and then Hyderabad. And
from here on, there is no looking back.

Today, we have over 1000 dealers across the country and we have a dedicated training proramme
to induct new dealers to our products and customers.

1960
It’s time for our first sales office and warehouse to open its doors in Madras (now Chennai) and
begin operations to sell product and service our customers in the region.

Taro Pumps Achievement For Year 1960 Icon

Taro Pumps Achievement For Year 1966 Icon
1966-67
A first in India, we launch two updates to our product line. First, a monoblock pump - a pump that's
fitted right onto a motor. Second, improving motor efficiencies and performance by the addition of
fins to our motor design. That’s where Texmo Pumps got their unique look!

1968-70
We build two new factories that are still in operation today. The first is where the Head Office
operates from today. The second is the one that houses our foundry and pump division.
Subsequently, several plants came up. And all of them are operational today.

Taro Pumps Achievement For Year 1968 Icon

Taro Pumps Achievement For Year 1980 Icon
1980
We begin to computerise our operations and start to embrace a technology revolution. We were
among the first to do so in the region.

1981
Here’s to our silver jubilee year!

Taro Pumps Silver Jubilee Year Icon

Taro Pumps Achievement For Year 1984 Icon
1984
India sees a revolution in pump technology from Texmo Industries. We introduce the Openwell
submersible pump which allows for the pump to be submerged into the bottom of an open well.

1990
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A big milestone for engineering design. We start to embrace 2D CAD technology and begin to
convert all our engineering drawings to 2D CAD. This would have a lasting impact on our
efficiency, accuracy and flawless design.

Taro Pumps Achievement For Year 1990 Icon

Taro Pumps Achievement For Year 1993 Icon
1993-95
We bring more products to the market. A line of multi-stage vertical jets, horizontal jets and
compressors.

1996
This year is the birth of Taro trademark, in preparation of the launch of a new line of 6" and 8"
borewell submersible pumps.

Taro Pumps Achievement For Year 1996 Icon

Taro Pumps Achievement For Year 1997 Icon
1997
This year, a whole new range of 6" and 8" submersible pumps are launched under the Taro brand.

1998
We build and install a brand new facility specifically for Research & Development of new
products. This facility allows us to try and test new technologies and process improvements. We
also launch a line of 4" borewell submersibles. Today, it is our best selling product in both the
agricultural and domestic sectors.

Taro Pumps Achievement For Year 1998 Icon

Taro Pumps ISO 9001 Icon
1999
All Texmo Industries plants are certified to ISO 9001. This marks a big step in providing customer
confidence that we have a robust quality management system in place.

2000
Texmo Industries becomes the first pump manufacturer to extend a warranty for its products.

Taro Pumps Two Year Worry Free Warranty Icon

Taro Pumps Achievement For Year 2003 Icon
2003
We are awarded 'India's Best Employer' by the Provident Fund Organisation. This year, we also
introduce to our customers, a new range of 5" and 7" borewell submersible pumps.

2006
Our Golden Jubilee year. We introduce 4" oil filled motors for our borewell submersibles and offer
a new range of slurry pumps for widespread applications.
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Taro Pumps Golden Jubilee Year Icon

Taro Pumps Achievement For Year 2010 Icon
2010
Enhancements to our Research & Design facilities with software based approach on Electrical
Design for motors and Computational Fluid Dynamics (CFD) for pumps design.

2011
A range of single phase vertical submersible pumps are brought into production. This allows for
submersible pumps for borewells to be installed in domestic applications where only single-phase
power is available.

Taro Pumps Achievement For Year 2011 Icon

Taro Pumps Achievement For Year 2012 Icon
2012
We are awarded 'the best private employer for employment of differently abled persons' by Tamil
Nadu state government. At this point we employ 50+ differently abled people.

2013
We make a giant leap in hydraulic design for efficiency by starting to use Computational Fluid
Dynamics (CFD) software custom built to design pumps.

Taro Pumps Achievement For Year 2013 Icon

Taro Pumps Achievement For Year 2015 Icon
2015
This year marks the centenary of our founder's birth. We build and bring into production a 175,000
sq. ft. facility to manufacture 4" submersible borewell pumps.

2016
A brand new 265,000 sq. ft. factory to manufacture borewell submersibles from 6" to 8" sizes goes
into production. We partner with Skillsonics based in Switzerland to start vocational training
courses.

Taro Pumps Achievement For Year 2016 Icon

Taro Pumps Achievement For Year 2018 Icon
2018 - onwards
2018 saw some our biggest changes to date – A refreshed brand identity, new store designs, a new
website and an industry-changing in-store customer experience. 2018 marks a truly exciting time
here at Taro Pumps.
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About Taro Pumps:

Taro Pumps Texmo Industries manufacture high quality, robust and reliable
submersible pumps, monoblock pumps and motors for the Domestic, Industrial and
Agricultural markets. Our pumps are renowned for their quality, providing leading
power and efficiency. Plus, we offer a unique 2 year warranty to make your purchase
worry free.

How the Industry Works

This report consists of five chapters.

Chapter1: About the Outlines the objective of the study

Project and researchmethodology

Providesmarket informationsuch as
Chapter2: Market study
the value chain, market size, growth
of Agriculture Pumps in drivers, key demand and supply
India regions,market segmentations,etc.

Both chapters
based on self-
sufficientstudies

Chapter 3: Studying the Chapter 4: Studying the

behaviorat the Point-of-
Purchase
Provides analysis ofparameters
for selection ofpump sets,
needs &preferences of farmers
and other key decision
influencersfor purchaseof
pumps
commercial & technical
aspects of supply side
Independent
studiesanalyzed Provides manufacturing
collectively
practices and market overview
of star rated pumpsfrom
organised andunorganised
Chapter5: Conclusions sector. Marketingstrategies
and Recommendations deployed and EXIMscenario

Concludes the report and

provides recommendationsfor
increasing market share of
energy-efficient pumps
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About the Project

1.1 Background of the project
The Indian power sector suffers from acute shortages, with the average national deficit at 8.5
per cent and peak shortage at 9.8 per cent in 2010-2011 annually. The Central Electricity
Authority (CEA) has projected the average short fall to rise to 10.3 per cent and peak shortfall
to rise to 12.9 per cent in 2011-121. There are two ways of meeting this deficit: it can either
be approached from the supply side (i.e. by producing more electricity), or from the demand
side by consuming less power. Electricity production has failed to keep up with the growing
national demand and, therefore, the shortages continue to persist. In such a scenario, energy
efficiency and demand-side management are cost-effective and potent tools to mitigate these
shortages.
Despite the clear benefits, energy efficiency has failed to kick off on a large scale in India.
This may be attributed to the following reasons:
Too much focus on supply-side options, i.e. producing more electricity, by policy makers
Certain upfront financing costs associated with energy efficiency, which distribution
companies may not be willing to bear
Inadequate awareness about the benefits of energy efficiency and demand-side management
among distribution companies


Indian Pumps – Market Segmentation by Share & Value

Recognising the barriers related to energy efficiency, Bureau of Energy Efficiency (BEE) has
developed an upstream market transformation programme design. Named Super-Efficient
Equipment Programme (SEEP), this design is being advocated by Prayas Energy Group for
the large-scale implementation of energy efficiency in India. SEEP will create a
comprehensive mix of incentives for manufacturers and consumers of appliances and
equipment. In doing so, it will help to transform the market to appliances of very high
efficiency standards, much higher than the current labelling norms. The mix of incentives
may comprise direct subsidy, technology transfer and other strategic interventions.
Figure shows demonstrates the usage of electricity produced in India. The largest consumer of
electricity is the industrial sector (at 39 percent), followed by domestic and agriculture sector
at 24 and 20 percent respectively. For agriculture states such as Andhra Pradesh, Uttar
Pradesh, Haryana, etc the electricity used by agriculture is as high as 35-40%. Hence,
electricity savings in the agriculture pumping sector will assist in achieving the objectives of
the programme.
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Market Size of Pump Industries in India

The Indian pump market was worth over US$ 18 billion in 2019

India has over 800 pump manufacturers

India manufactures more than more than 1 million pumps every year

The Indian Pump industry offers excellent growth opportunities for international collaborations

Indian Pumps are exported to more than 100 countries

Indian Pumps - Market Segmentation by Share & Value

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CHAPTER 3: OBJECTIVES

1) Scope to learn
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CHAPTER 4: RESEARCH METHODOLOGY AND DATA ANALYSIS

The scope of work involves collecting quantitative and qualitative data from various
stakeholders across the value chain of the agriculture pump-set sector—manufacturers,
retailers and farmers.
The research has two components. The first one is comprehensive desk research based on
secondary online sources and the second is field research based on primary sources such as
interviewing pump manufacturers, pump dealers and farmers.

Desk Research

Data Data Data Report

Quantitative and qualitative Collection Collation Analysis Writing
data through internet-based
searches, databases,
publications and industry
journals

Field Research

Quantitative and qualitative

data through interviews with
associations, major players,
end users and otherplayers in
the value chain

Desk research (Secondary research)

Desk research includes the review of literature available online. These literatures have been
collected from diverse public sources, such as the Ministry of Agriculture, other relevant
ministries at the state level, trade bodies, industry associations, journals and articles, company
websites and other relevant resources.
Developing an initial understanding of agriculture sector and the agriculture pump industry.
Literatures from Ministry of Agriculture and various state level ministries have been referred
to develop the understanding of number of agriculture pumps energised and currently used in
various states across India.
Result of previous programmes created by BEE to increase the awareness regarding star rated
energy efficient pumps though its Ag DSM programme
Short-listing of states for dealers’ and farmers’ primary interviews based on various
parameters which are mentioned in Field Research approach
Creating the list of pump manufacturers for the primary interviews
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Attempts were made to gather the literature on past studies on farmer’s awareness about
energy conservation and energy efficient pumps. No literature could be found given the
limited or no study done on the topic in past. Other then above attempts were made to gather
literature on topics similar to the current study, but the information available has been from
sparse to none.
Field Research (Primary Research)
Field research includes telephonic and face-to-face interviews with manufactures, dealers,
farmers and associations. The objective of field research is to gather comprehensive
information regarding the buying behaviour of farmers, the role of retailers, commercial
issues of manufactures and current awareness regarding energy conservation & energy
efficient pumps.
Our approach to field research can be segmented into four parts: what to ask, who to ask,
where to ask and how to ask.
Figure 2: Approach Towards Primary Research

 Pre-defined questionnaire for manufacturers, dealer,

What to ask farmersand associations

 Interviews of Major manufacturers, local manufacturers and

associations
Who to ask
 Survey of end users and retailers
 Offices of top agriculture pump manufacturing companies
Where to ask  Shortlisted states, cities and villages for local manufacturers,
dealers and farmers
 Face-to-face interview accounted for 80% of total interviews
How to ask  Telephonic interviews accounte for 20% of total interviews

What to Ask (Developing the questionnaire)

Three variants of the questionnaire were developed. First questionnaire was for farmers, second
was for the retailers and third was for manufactures. Each questionnaire was developed to
gather the information as mentioned in the scope of work with the final objective of designing
the mix of interventions for market transformation toward high efficiency pumps. Based on the
questionnaire, data templates were created for data entry. Who to Ask and Where to Ask
(Sample size)
A total of 135 farmers, 76 retailers and 19 manufactures were interviewed for data gathering.
Apart from above, several dealers were interviewed in initial stages of the project. Average time
spent interviewing a farmer and a retailer was 45 mins & for a manufacturer average discussion
time was 90 mins. Other than direct stakeholders, IPMA was also contacted for information and
data validation.
We have segmented the respondents into five categories:
 Dealers/retailers
 Farmers
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 Large manufactures with all-India presence

 Manufacturers with regional/state presence
 Associations
Dealers/Retailers and Farmers

A random sampling procedure is followed to provide maximum geographical coverage and at

the same time to interview appropriate number of retailers and farmers so as to provide
representative information for shortlisted district. As on company there are two branches and
covered all the Maharashtra.

PERENT

NAGPUR PUNE

We have shortlisted eleven states for our study. These states account for 95% of total area under
production, 95% of total agriculture production and accounts for more than 95% of total
agriculture pumps energized in India. The following criteria have been analysed to shortlist the
top 11 states. States have been represented in figure on next page.
 Number of pump sets energised
 Area under production
 Total production
 Growth in GDP contribution from agriculture
Within states, districts for interviews have been shortlisted to provide maximum geographical
coverage. Other than geographical coverage, annual replenishable ground water level and net
ground water availability have also been considered in shortlisting of districts. For Punjab &
Haryana (considered as one region), Uttar Pradesh, Maharashtra, Andhra Pradesh and
Karnataka, three districts have been shortlisted in each state. For West Bengal, Madhya Pradesh,
Rajasthan, Gujarat and Tamilnadu, two districts have been shortlisted in each state. The name
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and location of districts have been provided in state profiles of image

Farmer’s interview has the sample size of 135. A minimum of 10 interviews have been
conducted in each state. For sampling of farmers within a district, farmers have been
categorized as small, medium and large. This division has been made on land holding patterns
and HP of pump used. Other than 135 farmers that provided us with both quantitative and
qualitative information as per the questionnaire, approximately 200 more farmers are
interviewed to verify the qualitative information collected from 135 farmers. Apart from
verification, these 200 farmers also provided with qualitative information that assisted us in
analyzing the reason for quantitative information. The selection of these 200 farmers has been
entirely random. Complementing the interview of farmer, interviews of retailers have been
conducted. The sample size of retailer’s interview was 76 with minimum of 5 interviews in
each state. The interview of retailers is a mix of local retailers in a town near village and big
retailers in equipment’s clusters in nearby city
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Figure 3: Shortlisted states and number of respondents (farmers and retailers)

Punjab & Haryana

F: 13 Uttar PradeshF:
R: 10 18

R: 6

Rajasthan
F: 14

R: 9

Gujarat
F: 12

R: 7
West Bengal
F: 16
Madhya Pradesh
R: 10
F: 13

R: 10 Andhra Pradesh
F: 11
Maharashtra
F: 17 R: 5

R: 9
Tamil Nadu
Karnataka F: 11
F: 10 R: 5
R: 5

After all we only focus on Maharashtra, Satara District

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In the Texmo Industries when we focus on Maharashtra there are 2 branches in Maharashtra
one is on Pune and Nagpur is a second branch. The total Maharashtra cover by pumps by the
help of two branches. Now the total dealer of the Maharashtra is 190. The main focus of the
satara district, right now the dealer is 6 but due to some extra market we need to placed extra
two dealers. The total population of satara is 3,003,741, As per Census 2011, there are 5
towns and 211 villages within Satara Taluka.

CHAPTER 5: DATA ANALYSIS AND INTERPRETATION

For the pump Business first most important is that when the pump business starts and what is
the climate condition
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In the above image we shown the month wise season condition and what
suitable pump on that month and below image shows the average
relative humidity by quarterly.

Average
Realtive Humidity

1st Apr-June 2nd July-Sep 3rd Oct-Dec 4th Jan-Mar

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Image Shows the all satara map

CHAPTER 6: CONCLUSIONS
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People who are looking to purchase pump today are more aware of what to look for and the
information they should find, and they are more concerned with choosing the best type of
pump for them. But the majority of individuals still do not know what documents to look for
when trying to purchase pump in his area. Here, I've collected and analyzed the general
farmer's & public expectations and views. The implication is that they expect high-quality
pump from the company to dealer & dealer to customer.
The pump industry is most affected by great investment prospects and a decrease in stamp
duty registration costs because many people want to purchase pump in those circumstances.