The Indian pump sector has been growing over the past few years due to several factors, including growing urbanisation, declining groundwater levels and various initiatives aimed at improving infrastructure. Pumps are considered essential equipment in almost every sector, including agriculture and infrastructure. India’s pump industry is an important factor in the country’s growth. The industries that highly rely on pumps include chemicals, metals and mining, oil and gas, water and wastewater treatment, and electricity.
Industry structure
The structure of the Indian pump market is very fragmented. It is characterised by a substantial number of small- and mid-sized players, and is very competitive. Several major Indian players, including Kirloskar, CRI Pumps, Texmo Industries, Jyoti Pumps, WPIL Limited and Flowmore, have a sizeable presence and provide tailored solutions to various market segments. Middle-sized competitors, including Shakti Pumps, Falcon Pumps, Roto Pumps, Kishor Pumps, Sharp Pumps, Suguna Pumps and Aquasub Pumps, hold a sizeable portion of the market. Significant foreign players have also joined the market and are attempting to expand their influence. Leading international manufacturers of industrial pumping systems, including KSB Pumps, Grundfos Pumps, Wilo AG and Flowserve Corporation, are already present in India.
That said, the market has evolved significantly over the years. Large Indian vendors compete directly with global players, and since they have a wide distribution channel, global players find it difficult to penetrate the market. Due to their relatively cheaper prices, small regional players are a danger to both big local and international players when it comes to product pricing. Only some of the larger players have the capability of serving the industrial sector. Unorganised small players account for nearly half the supply to the price-sensitive agricultural and domestic segments.
Market size
The growth of the pump industry in India is being driven by the expansion in domestic infrastructure construction and other water-intensive businesses. As per market estimates, the Indian pump industry manufactures more than 1 million pumps every year. It has been experiencing steady growth over the years. According to the Indian Pump Manufacturers, Association (IPMA), the Indian pump industry has been growing at a compound annual growth rate of 4 per cent and is expected to reach around $100 billion by 2026.
Key trends and developments
Growing industry use cases
The Indian pump industry has expanded its footprint into various industrial sectors. Sectors such as oil and gas, power generation, irrigation and water treatment heavily rely on pumps for their operations. In the irrigation sector, pumps are used to achieve irrigation efficiency and speed up the process of cultivation. Many states are taking steps to install pumps to increase irrigation efficiency. In the water and wastewater sectors, pump help in regulating supply by pumping water from low levels to high levels. Similarly, they help in pumping sewage and regulating the process of sewage treatment. Many states and municipal corporations are undertaking projects that involve developing sewage collection and treatment facilities, as well as drainage and water supply systems. The installation of pumps and sewage pumping mains is a critical part of these projects.
In the power industry, fuel oil processing, lubrication and cooling are the three main uses for pumping systems. The sector being diverse, different activities require different types of pumping solutions. Some of the pumping systems used in the power industry are boiler feed water pumps, horizontal booster pumps, GSG radially split barrel casing pumps, high pressure/temperature single-stage barrel casing boiler feed pumps and concrete volute pumps. Similarly, operations involving oil and gas cannot be completed without effective pumping systems. Pumps are required at almost every stage of the process, such as for moving fuel from the ground to ships, refineries or storage, or accelerating the flow of fluid between two points.
Growing emphasis on energy efficiency
Many Indian pump manufacturers are now paying attention to the environmental impact of their operations due to the growing emphasis on sustainability. This has inspired them to improve their goods using environment-friendly design elements. Pump producers in the country are working to continuously improve output, quality and service despite several obstacles. Improving pump efficiency is one such way to reduce energy consumption and preserve natural resources.
In order to improve the energy efficiency of industrial pumps, pump manufacturers are taking measures such as utilising parallel systems, avoiding the use of oversized pumps, conducting periodic maintenance and using variable frequency drives. Other ways to improve the energy efficiency of industrial pumps include selecting a high-efficiency pump model, avoiding operating the pump at a low speed, regularly cleaning the pump, properly lubricating the pump regularly, checking pump alignment to avoid misalignment and regularly inspecting seals to prevent leakage. Energy-saving pumps offer various advantages such as reduced energy costs, higher productivity gains, lower maintenance costs, improved operations, reliable pumping, fewer system failures and higher efficiency.
Increasing use of solar pumps
Due to the continued efforts of the central and state governments, the use of solar pumps in the country has increased. The Ministry of New and Renewable Energy has set a target of adding 34.8 GW of solar power capacity by March 2026 under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM). As of November 2023, under Component B of PM-KUSUM, 278,114 out of 971,471 sanctioned solar pumps have been installed. Meanwhile, under Component C, only 4,594 of the 3,046,752 pumps sanctioned under the individual pump solarisation and feeder-level solarisation schemes have been installed.
Farmers benefit greatly from the use of solar-powered pumps. Besides offering a reliable energy source, solar pumps are cost-effective and environment-friendly. Additionally, they are useful in remote areas of the country where farmers still face challenges with electricity supply.
Growing pump exports
Pump exports from India have been gaining importance and manufacturers are now focusing on export markets for further growth in the coming years. According to the Engineering Export Promotion Council of India (EEPC), during 2022-23, pump exports from India stood at $1,319.3 million. According to industry estimates, India exports most of its pumps to countries such as the US, the UAE and Germany.
India does have a lot of competitors globally. For instance, according to the IPMA, India has covered only 10 per cent of the demand in Africa. Europe, China and Turkey are some of the major competitors in that region.
Challenges and the way forward
A small number of major manufacturers control the entire industry. Small- and medium-sized manufacturers have a relatively low level of penetration. That said, the large number of small and medium enterprises in the market that provide affordable pumping solutions have put tremendous pressure on the market share of the bigger firms in the household and agricultural sectors. Further, the provision of cheap electricity to farmers poses a barrier to the adoption of energy-efficient technologies.
Growing investments globally in sectors such as irrigation, water and wastewater, chemical industries, mining, and power present tremendous scope for the Indian pumps industry. With the growing exports over the years, Indian pump manufacturers are witnessing enormous interest in the global market. To this end, the IPMA is focusing on improving the global share of Indian pumps.
Naina Gulati