Expansion in the infrastructure sector is one of the major factors influencing the growth of the Indian pump market, says Abie Abraham, Vice President – Electromechanical Division, V-Guard Industries Ltd, the Kochi-based company whose major product lines include pumps, cables, digital UPS and stabilisers, and electric water heaters.
Pumps play a dominant role in sectors like agriculture, production of oil and natural gas, mining and refining, petrochemicals, power generation, domestic and household utilities, and contributes a major part to a nation’s economy. In India, the total market size of the pump industry is estimated to be about Rs.7,000 crore which is poised to grow at an average of 7 to 9 per cent annually.
The Indian pump industry has been catering to demand from diverse sectors. Demand for domestic and agricultural pumps is primarily influenced by the monsoons whereas demand for industrial pumps depends on investments and upcoming projects.
Expansion in infrastructure is one of the major factors influencing the growth of the pump market. Erratic monsoon climate in India provides both opportunity and challenge for market growth. Fluctuations in groundwater level facilitate further development in the market and also bring in a number of changes in the product type thus increasing the overall competition. Rise in population and urbanisation also boosts the demand for pumps in the market. Finally, a strong economic outlook stimulates the growth of the Indian pump industry which has a production of more than five million units on a yearly basis.
The Indian pump industry addresses approximately 95 per cent of the domestic consumer needs, through domestic manufacturers. Power subsidy poses a major hindrance in the market growth and the players face challenges due to certain government policies. Consumer outlook in the market and rise in cost inputs poses a major challenge to the pump industry. Under these conditions, the government should bring in certain measures to control changes, forecast and streamline activities, policies and bring in transparency in the total process.
A significant contribution of 40 per cent in replacement segment has played a vital role in the growth of the pump market. With increased focus on carbon footprint and lifecycle cost, there is an increased customer shift towards higher efficiency pumps. Good infrastructure projects and a perfect monsoon can foster and sustain the Indian pump market.
The domestic manufacturers are working towards increasing the quality of their products and imparting newer technologies into their product ranges. Focus is also being given to create energy-efficient technologies as pumps require a large amount of energy for its proper functioning. Also, consumers are more interested in power saving and energy-efficient products in the market. Usage of better materials for the products helps in the product enhancement as well.
The present need of the industry is to create quality and efficiency in the products. The domestic manufacturers should create business strategies to compete with international manufacturers coming to India.