The Indian pump market was valued at about Rs 111.78 billion in 2016-17. Submersible and centrifugal pumps accounted for 95 per cent of the pumps sold in the country. The market for pumps is expected to grow at a compound annual growth rate of around 6.3 per cent to reach Rs 143 billion by 2020.
The domestic pump industry is highly fragmented and is characterised by a few major players and a large number of small and medium-sized players. The organised pump market, comprising over 300 players, accounts for a 55 per cent market share. The remaining 45 per cent is accounted for by the unorganised market, which comprises more than 600 players. The top 10 players in the organised market account for 45 per cent of the total market share.
Of the country’s total demand for pumps, around 95 per cent is met by domestic pump manufacturers, while the remaining 5 per cent is met through imports. In terms of market capitalisation, KSB Pumps, Kirloskar Brothers Limited (KBL), Shakti Pumps India Limited, Yuken India, WPIL and Roto Pumps are the major pump manufacturers in the country. As per India Infrastructure Research, KBL is the largest pump manufacturer in the country with a market share of 14 per cent in the domestic organised pump industry. Further, KSB Pumps commands a market share of 7 per cent and supplies 35 per cent of its pumps in the “standard pumps” segment and these are used for irrigation and building services, while supplying the remaining 65 per cent of its pumps to the industrial segment. Shakti Pumps has primarily been an export-oriented company with operations in nearly 100 countries. It is one of the few companies in India which offers complete stainless steel pumps.
The market for pumps catering to the agricultural sector and building services is highly fragmented and competitive on account of the competition prevalent among the large number of small and medium enterprises (SMEs) attempting to enhance their market share. On the other hand, the market for pumps catering to the industrial sector is comparatively difficult for SMEs to penetrate due to the technology-intensive nature of this segment.
Pump manufacturers in India can also be classified on the basis of the pumps supplied. Key manufacturers of centrifugal pumps are KBL, KSB Pumps, Crompton Greaves, AquaSub Engineering, CRI Pumps, Grundfos, Flowmore, Mather & Platt, Sulzer, Shakti Pumps, Flowserve, WPIL and Jyoti Limited. The key suppliers of positive displacement pumps are SPX Corporation, Seepex India Private Limited, Colfax Corporation, Roto Pumps, Alfa Laval Corporation, Ingersoll Rand Corporation, Dover Corporation and NETZSCH.
Globally, the pump industry is moving towards consolidation. Some major international companies are recognising the growth prospects in the Indian pump market and therefore seeking to enhance their presence. Foreign players such as KSB Pumps, Grundfos Pumps, Wilo AG and Flowserve Corporation already have a considerable footprint in the Indian pump industry.
Products on offer
Both domestic and foreign players in the Indian pump industry offer a wide range of products. The pumps produced in the Indian market can be classified as either dynamic or positive displacement pumps. Dynamic pumps can be further classified as centrifugal pumps and specialty pumps such as electromagnetic pumps for liquids and metals, fluid actuated/gas lift or hydraulic pumps and jet pumps. With regard to positive displacement pumps, two major subcategories are produced. These are reciprocating pumps such as double-diaphragm pumps, single-diaphragm pumps, double-acting duplex pumps, double-acting simplex pumps and single-acting piston pumps; and rotary pumps such as siding vane pumps, flexible tube or lining pumps, radial pumps, screw pumps and multiple-rotor pumps.
The Indian pump industry has manufactured several globally recognised products. These include concrete volute pumps, lowest life-cycle-cost pumps and multistage multi-outlet pumps. Over the years, there has been a significant increase in the demand for lowest life-cycle-cost pumps due to enhanced focus on energy efficiency. In addition, the use of solar-powered pumps is also picking up pace on account of their cost saving potential through a reduction in electricity use. Multistage multi-outlet pumps also offer a wide range of benefits especially for urban development projects by reducing the number of pumps that need to be installed, eliminating the need for water tanks on intermediate floors and enabling smaller pump rooms. Further, concrete volute pumps have also proved to be advantageous as their concrete casings are corrosion and erosion resistant, thereby, resulting in considerable cost savings.
Pump manufacturers are also working towards the integration of energy efficient systems and intelligent process equipment systems in order to match international standards and requirements and at the same time, be able to retain cost effectiveness for domestic use. According to the Indian Pump Manufacturers’ Association, there is a potential of 20 per cent savings by the mere replacement of inefficient pumpsets by star-rated ones.
Going forward, the outlook for the Indian pump industry is bright on account of the emphasis placed by the government on infrastructure development. Further, high growth in key end-user industries and increased investments in the irrigation sector are also expected to trigger enhanced demand for pumps. Also, the government’s focus on reducing state electricity board losses is likely to increase the demand for energy efficient pumps in the near future. However, issues such as the unpredictable business scenario, lengthy approval process for certification and poor maintenance practices need to be tackled in order to provide an impetus to the Indian pump industry.