The pump industry in India is nearly a hundred years old. Pumps are among the most basic equipment needed for every sector. They cater to a wide range of sectors, including infrastructure and agriculture. The pump industry has, through its own growth, contributed immensely to the economic growth of the country.
Pumps come in a variety of sizes for a wide range of applications. They can be classified according to their basic operating principle as either dynamic or displacement pumps. Dynamic pumps can be sub-classified into centrifugal and special effect pumps. Displacement pumps can be sub-classified into rotary and reciprocating pumps. In principle, any liquid can be handled by any of the pump designs, but the centrifugal pump is generally the most economical.
Market size and trends
The Indian industry of pumps and valves has been a mature market for many years and has registered significant growth in the past few years. Notably, the sector provides one of the highest net value additions (over 20 per cent) in the engineering sector. It has matured significantly and domestic sales are increasing at the rate of 16-18 per cent per annum.
The pump market in India is valued at Rs 200 billion and is expected to grow at a compound annual growth rate of over 7 per cent during the period 2021–26. The segment has around 800 large, medium and small scale manufacturers producing over 4.5 million pumps per annum – the second highest amount of machinery manufactured in India after electric motors.
India exports pumps and valves to around 100 nations, catering to a wide range of sectors globally, including oil and gas, process industry, agriculture, industrial and domestic water supply, and construction. The key export markets include West Asia, North Africa, the US, Germany, Russia, China and Latin America. With regard to imports, Indian pumps and valves are sourced from the US, China and France.
About 95 per cent of the pump market comprises centrifugal pumps, while the remaining 5 per cent is positive displacement pumps. Agriculture and building services account for the major portion of demand at 46 per cent of the market in terms of value. There are a large number of small and medium enterprises (SMEs) in these sectors. State-wise, Madhya Pradesh, Maharashtra, Tamil Nadu, Karnataka and Andhra Pradesh constitute the biggest markets for agricultural pump sets. The industrial sector comprises the remaining 54 per cent. This segment requires higher investment due to its technology-intensive nature and, therefore, has fewer SMEs.
Of the infrastructure sectors, the water and wastewater treatment segment accounts for the maximum demand for pumps. This is followed by power, oil and gas, and mining.
Both Indian and foreign players play a role in the pump market. Some of the key Indian players, such as Kirloskar, CRI Pumps, Texmo Industries, Jyoti Pumps, WPIL Limited and Flowmore, have a considerable footprint in the pump market, and offer customised solutions to different segments. In addition, several medium-sized players such as Shakti Pumps, Falcon Pumps, Roto Pumps, Kishor Pumps, Sharp Pumps, Suguna Pumps and Aqua SubPumps also have a significant market share.
The pump industry is seeing a change globally, with major international players entering the Indian market and thus seeking to increase their presence. Foreign companies such as KSB Pumps, Grundfos Pumps, Wilo AG and Flowserve Corporation are already active in India and are leaders in industrial pumping systems.
The way forward
The demand for pumps is expected to grow at a steady rate due to the increased application of pumps in several end-user sectors. Industrial pumps are witnessing a high demand from the cement, steel, oil and gas, and water and wastewater sectors. The increased oil and gas demand and high investments in water and wastewater treatment activities are projected to increase sales substantially.
Water and wastewater, chemicals, pharmaceuticals, construction, food and beverage, and mining are the major end-users in India. Factors such as increased focus on energy efficient products in the water and wastewater industry, development of generic pharmaceutical production, rapid urbanisation, rise in massive housing schemes and expansion of infrastructure projects are likely to influence the growth of industrial pumps in India.