Indian Pump Industry – An overview

15
Apr

Market research analysts at have predicted that the pumps market in India will grow steadily during the predicted period and will post a CAGR of almost 10% by 2020. Owing to increased consumption, the pump manufacturers have been concentrating only on the needs of the domestic market, mainly to the agriculture and building services industries. The influence of linearization, privatization, and globalization of the Indian pump market has compelled manufacturers to export their products to foreign countries where the demand for pumps in high in industries such as oil and gas, steel, and mining. Currently, the US and Germany are the revenue contributors to the market. Factors such as the rising demand for oil and the increased investments in water and wastewater treatment activities will have a huge impact on pump exports in India, which will drive the demand for the market during the predicted period.

The pumps market in India will witness the emergence of intelligent pump systems and micro disc pump technology in the next few years. Intelligent pump systems can control and regulate the flow or pressure of the fluid, can adjust to process changes, and also have a fault-tolerant design, which will induce several manufacturers to adopt these pumps as they reduce the total cost of ownership without compromising performance parameters. Also, the micro disc pump technology will help manufacturers develop small-size and energy-efficient disc pumps that can be used in medical applications such as wound therapy and blood pressure measurement.

India today exports pumps to 100+ countries

  • Is totally self-sufficient in
  • captive power generation
  • pulp and papers
  • energy efficient pumps in utilities and agriculture
  • Is almost self-sufficient in pumps for nuclear power

Market Size of Pump Industries in India

  • The Indian pump market was worth over US$ 18 billion in 2019
  • India has over 800 pump manufacturers
  • India manufactures more than more than 1 million pumps every year
  • The Indian Pump industry offers excellent growth opportunities for international collaborations
  • Indian Pumps are exported to more than 100 countries

Indian Pumps – Market Segmentation by Share & Value

Industries Market Share
Agriculture 27%
Building Services 19%
Water & Wastewater Management 17%
Power Generation 12%
Oil & Gas 8%
Metal & Mining 4%
Others 13%

Agriculture and Building Services comprise 46% of the market by value (INR 3910 crore). This segment of the Indian pump market is highly fragmented as well as competitive – with a large number of small and medium enterprises (SMEs) competing to increase their market share.

The biggest markets for agricultural pump sets are the central Indian states of Madhya Pradesh, Maharashtra, Tamil Nadu, Karnataka, and Andhra Pradesh.

The Industrial Sector comprises the remaining 54% of the market by value (INR 4590 crore). This segment of the India pump market consists of sectors like Water& Sewage Treatment, Power Generation, Oil &Gas, Metals &Mining, and Others. Being technologically intensive, it is a relatively hard sector for small and medium enterprises (SMEs) to penetrate.

Indian Pumps – Market Segmentation by Pump Type

  • Centrifugal Pumps ~95%
  • Positive Displacement Pumps ~5%

Indian Pumps – Key Strengths: Why Make in India?

  • India offers among the highest net value additions in the world (20%-plus)
  • A ready export market in 100-plus countries
  • 16% of India’s pump manufacturing capacity is geared for exports (and growing)
  • Healthy domestic market for pumps in India – US$ 1.2 billion-plus (INR 8,500-plus crore)
  • Technological capabilities to meet the highest quality standards – such as ISO 9000, ANSI, API or EUNO series
  • Proactive government policies to stimulate agricultural growth (and demand for pumps), through:
    • subsidized electricity
    • exemptions on use of solar water pumps
  • Rapid growth of the Indian chemical market has stimulated the demand for high quality industrial pumps
  • The growing demand for lower cost of operation and zero downtime pumps gives India a competitive advantage to offset the labour cost advantage offered by low-cost/low-quality manufacturers in some Asian countries

Indian Pumps – Key Strengths: Why Make in India?

70% of India’s US$15 trillion GDP projected for 2030 will have to be supported by urban infrastructure – and will require massive doses of investment in urban infrastructure. The other growth drivers for Indian pumps include population growth, higher water-intensive food consumption, industrialization, growing public awareness about drinking water quality, decreasing water quality, lower water levels, and environmental pressure from government bodies on wastewater discharge, thereby amplifying the demand many times over for the recycle and reuse of water.

Indian Pumps – Key Strengths: Why Make in India?

  • Agriculture
  • Building services
  • Power generation
  • Oil and gas
  • Water and wastewater

This market study estimates that the agriculture segment will account for about 35% of the total share of the pumps market in India by 2020 and will also dominate this market throughout the forecast period. The increase in consumption rate, rise in agriculture exports, the growth in the food processing industry, and growth in organic farming will result in the growth of the agriculture sector, which will subsequently increase the demand for pumps in the coming years. Additionally, the expected investments from the government toward irrigation projects will also drive the demand for the market.

The Government of India has introduced several policies to promote agricultural growth in the country. These policies range from subsidized electricity to exemptions on the use of solar water pumps. The announcement of such policies has inspired farmers to install independent irrigation facilities to ensure the consistent availability of water. Consequently, this is pushing the demand for water pumps in India.

Industry Clusters – Indian Pumps

Some of the major industry clusters for pumps in India include:

  • Coimbatore
  • Belgaum
  • Batala & Jalandhar
  • Kolhapur
  • Rajkot
  • Ahmedabad
  • Hyderabad

Quality Certifications for Indian Pumps

The Indian Pump industry complies with highest quality standards – such as ISO 9000, ANSI, API or EUNO series.

Source: Indian Pump Industry – An overview

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