Leading the Market: Major players and key offerings

Major players and key offerings

India is currently one of the leading pump manufacturing and exporting countries. The domestic pump market was valued at about Rs 150 billion in 2017-18. More than 4.7 million pumps are manufactured every year. Centrifugal pumps accounted for around 95 per cent of the pumps sold in the country, while positive displacement pumps accounted for the remaining share. Going forward, the market for pumps is expected to grow at a compound annual growth rate of around 10 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 me-dium-sized players. The organised pump market, comprising over 300 players, holds 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 organised pump market has a small number of large domestic and multinational players and a large number of mid-sized players. Further, the top 10 players in the organised market account for 45 per cent of the total market share.

Of the total demand for pumps, around 95 per cent is met by domestic manufacturers and the remaining 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 leading pump manufacturers in the country. Of these, KBL is the largest manufacturer with a market share of 14 per cent in the domestic organised pump industry. KSB Pumps is another key pump manufacturer in the domestic industry and commands a market share of 7 per cent. The company supplies 65 per cent of its pumps to the industrial segment and the remaining 35 per cent to the “standard pumps” segment used for irrigation and building services. Shakti Pumps is mainly an export-driven company with operations in over 100 countries and 13 states across India. It is one of the few companies in the country that offers pumps that are made of stainless steel.

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.

The Indian pump market can also be segregated on the basis of end use. The main sectors in which pumps are used are agriculture (irrigation), building services, waste water/ sewage management and industrial uses (power, oil and gas, metals and mining, etc.). Of these, agriculture and building services together account for the lion share of 46 per cent of market value. However, this segment is highly fragmented with a number of small and medium enterprises (SMEs) vying for a share of the market pie. The largest market for agricultural pump sets is the central region comprising Madhya Pradesh, Maharashtra, Andhra Pradesh and Uttar Pradesh. The industrial sector constitutes the remaining 54 per cent of the market. It consists of sectors such as water/ sewage treatment, power generation, oil and gas, and metals and mining. As this segment of the pump market is technology intensive, it is comparatively difficult for SMEs to penetrate it. Companies such as KBL and KSB Pumps are the leaders in this segment.

Products on offer

Pumps range from very large to very small, from those handling gas to those handling liquid, and from those suited to high volumes to others better suited to low volumes. Based on the method of operation, there are primarily two types of pumps available in the market – dynamic pumps and positive displacement pumps. Accounting for a sizeable proportion of the total pump market (around 95 per cent), dynamic pumps add energy to the liquid flowing through it via the dynamic action of a rotation blade, which increases the velocity of the liquid. This dynamic action of the liquid is carried out by an impeller, which is a revolving wheel with curved vanes. Dynamic pumps can be further classified into two categories – rotary pumps (comprising centrifugal pumps, axial flow pumps, mixed flow pumps and peripheral pumps) and special pumps (such as jet pumps, electromagnetic pumps and fluid actuated/gas lift or hydraulic pumps). Of all the types of dynamic pumps, centrifugal pumps are the most commonly used.

Positive displacement pumps account for around 5 per cent of the total pump market. They operate on the principle of filling and displacing liquid from a cavity. These pumps help maintain a steady flow and volume of liquid and are devoid of any discharge pressure or head. Positive displacement pumps can be classified into the following main subcategories – reciprocating pumps (piston/ plunger/diaphragm pumps) and rotary pumps (single-rotary and multiple-rotary pumps).

Overall, dynamic pumps are preferred to positive displacement pumps owing to their lower maintenance requirement and cost effectiveness. The other benefit that they offer is their ability to operate at high speeds and high fluid flow rates. However, these pumps usually offer low efficiencies as compared to positive displacement pumps.

In order to match international standards and retain cost effectiveness for domestic use, pump manufacturers in the country are also working towards the integration of energy efficient systems and intelligent process equipment systems. There has been an increase in the use of smart, sustainable and energy efficient pumps at the global level, and India is no exception to the trend. According to the Indian Pump Manufacturers’ Association, there is a savings potential of 20 per cent by the mere replacement of inefficient pump sets by star-rated ones.

In sum

The pump industry is a significant contributor to the country’s growth due to the role of pumps as primary equipment in almost every sphere of the economy, including infrastructure and agriculture. The Indian pump segment has registered rapid growth in the past few years largely due to depleting groundwater levels, rapid urbanisation and various initiatives launched with the aim of improving infrastructure. With India’s minuscule share of 3-5 per cent of the global pump segment, the opportunity to grow is enormous. However, the need of the hour is the realignment of distribution networks ensuring cost optimisation, understanding customer needs and enhancing services.