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The export
scene is in a very nascent stage. What the industry urgently
needs to do is to step up export markets if it has to cover up
for the domestic recession. In the case of the pump industry
the government is the largest buyer
The Indian pump industry manufactures various types of pumps
including centrifugal pumps, submersible pumps, screw pumps
and slurry pumps. The bulk of the demand for pumps comes from
the agriculture sector. It also caters to the demand for
process pumps of specific applications .Pump & Valves are the
devices for raising, transferring liquids, fluids or gases
especially by suction or pressure. Thus, these devices either
act independently or as a part of a package of activities. In
any case they constitute an indispensable aspect in most
industrial functions. The total funds deployed so far in the
industry's infrastructure are estimated at 70 crore. This
sector is directly influenced by monsoons and the agriculture
development in the country. Till 1955, the industry seems to
have made slow progress. But the all-round growth in
agriculture due to the green revolution and rural
electrification in the 70's led to the industry to post an
annual growth rate of 35 per cent.
At present, over seven lakh units of pumps are
manufactured annually amounting to around 50-60 crore. A bulk
of this is produced by the small-scale units.
The entire domestic demand is met locally. More than seven
million motor-driven agro pump sets consume about one-fifth of
the total electrical power consumption of our country as per
the estimates made in the late 1980's. Agro- operations are
seasonal; therefore power consumption varies from season to
season. In the peak seasons the agro consumption is a great
strain to the grid. Why not use energy efficient pumps as a
solution? The answer to this is that since power to the rural
consumers is provided at a pittance, at unimaginably low
prices, such energy efficient pumps are not felt as a dire
need. Why would they be buying these when it does not pinch
them or their pockets?
The industry is equipped to, by way of manufacturing
facilities and well established research and development
centres, to offer the most suitable pumps to cater to almost
every application that the user may need. Most of the major
manufacturers are ISO 9001 certified. Indian pumps are
exported mainly to the Middle East countries. The export scene
is in a very nascent stage. What the industry urgently needs
to do is to step up export markets if it has to cover up for
the domestic recession.
In the case of the pump industry the government is the largest
buyer. It does this through public sector undertakings, which
is why the slightest change in the policy makes an impact. We
export pumps to nearly 60 countries. The industry has also
ventured into exports of technical know-how by setting up
joint ventures in South Asian countries like Malaysia, the
Philippines and Mauritius. As most others, pump industry is
split into organised and unorganised sectors. The organised
sector has its apex body Indian Pump Manufacturer's
association (IPMA), whose members account for, in terms of
value, 95 per cent of the pumps produced in India, with the
remaining being produced in the unorganised sector. According
to the IPMA's report, the total market size is of the order of
1,200 crore. There are some 500 odd manufacturers of pumps in
this country, in large, medium and small scales, of which 72
are sector include KSB pumps, Atlas Copco, Worthington, Elgi
Equipments, Ingersoll Rand, Kirloskar Pneumatics and others.
According to observers in the industry, presently, the gross
value of the production of pumps in India is estimated to be
of the order of US $ 450 million. The number of pumps making
this value would be around 1.2 million. Industry observers
feel that the present capacity is Just sufficient to meet the
present demand. With major expansion in almost all sectors
like steel, power, oil, petrochem, now in the pipeline, the
valve industry has to gear up to meet the increased demand.The
pump industry competes with international pump market serving
a variety of product application areas in agriculture,
civil/construction, city water supply schemes, drainage, flood
controls, power, fertilizers refineries, petrochemicals, etc.
Nearly 40% of the total volumes of pump produced in India are
for irrigation and the rest are used in the industry &
domestically.
The industry is based on the concept of restricting flow of
air in one direction. Today the range of valves that are
manufactured in India starts from Gate valves, ball valves,
foot valves to very sophisticated pneumatic valves. The types
of valves manufactured can be classified on the basis of
customer industry like steel, power, oil, petrochem, etc. The
Indian valve industry consists of two sectors. One is area
based and other is company based. Area based sectors are
basically areas which have many small manufactures. The other
sector comprises of bigger companies, which manufacture all
types of valves with each company having its own specialised
area. The export performance of the valve industry is poor and
even that it is in the form of standardised valves like ball
valve and plug valve. Industry experts cite two reasons for
the poor export performance. With the domestic market growing
at a rate of 10-12 per cent, the valve manufacturers have not
felt the need to export.
Secondly, most major valve manufacturers have foreign
collaborations and the foreign collaborators impose
restriction as regards export market. The present market size
is more than Rs 500 crore with an annual growth rate of 10-12
percent. Industry observers feel that the present capacity is
just sufficient to meet the present demand. With major
expansion in almost all sectors like steel Power, oil,
petrochem, now in the Pipeline, the valve industry has to gear
up to meet the increased demand. Not, only would they have to
produce the valves required, they will have to ensure that the
product delivered is a quality product as otherwise customers
are likely to start importing valves The manufacturers have
already started gearing up for it with major valves
Manufacturers having either obtained or in or are in the
process of obtaining ISO certification. Globalization of the
Indian economy also serves as a good challenge for Indian Pump
Manufacturers to be globally competitive. This does demand
compliance to International standards on Pumps. Looking to the
increasing presence of Indian Pumps in the global market, it
can be said that Indian Pump Industry is well poised.
Source Engineering Review
For any further queries with reference to the article write to
shirish@engrreview.com
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