Indian pump industry: Equipped with advance facilities to provide best possible products

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

  1 2 3 4 5 Index

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