DEMAND TRENDS
activities are taken up. These devices have helped safeguard the pump against premature failure and have contributed to optimised efficiency of the entire system,” says the Frost and Sullivan report.
GROWTH BOOSTERS PUMPS Power generation Irrigation and water & wastewater Oil & gas — Upstream and downstream.
PRESENT SCENARIO IN INDIA Reports reveal that the pump industry in India is approximately worth `2,500 crore. There are 500 manufacturers in the market, which together produce 1.2 million pumps every year. Major players in this segment include Kirloskar Brothers (KBL), KSB Pumps, Grundfos India and CRI Pumps. According to sources in the pump industry, “In the last 2-3 years, the pumps industry has witnessed around 20-25 per cent growth, mainly due to the new upcoming projects. The other factors that are fuelling this growth include refinery projects, good monsoon and agriculture. However, since the last six months, because of the slow growth in the world markets as well as the industrial sector, the industry is witnessing slight signs of recession. But this impact has been negligible as the pump industry in India is mostly dependent on the demand coming in from the domestic market.” Most pump manufacturers in India operate in the unorganised sector as they are “niche-focussed and
VALVES Oil & gas — Upstream, midstream and downstream Power generation. Source: Frost & Sullivan
as unorganised sectors. According to various estimates, the country’s valve industry in the organised segment is valued at more than `900 crore, while the unorganised sector accounts for `500 crore. L&T and BHEL are the two major players functioning in the sector and together command nearly 50 per cent of the market. The unorganised sector has more than 1,000 companies manufacturing players for valves.
INDUSTRIES TO SPUR GROWTH
There are huge opportunities for the pumps and valves industry, as the government has planned further investments in this industry on a five-year plan basis – a clear indicator The trends that drive the pump industry of healthy prospects are products that offer better lifecycle for the industry. costs, offer scope for minimal replacement “The industry of parts and are energy efficient. The industrial pump market primarily demands has tremendous high-quality products coupled with good consultation potential,” affirms and service backup. Norman. Huge Vivek Norman, MD, Netzsch Technologies India investments in dependent sectors manufacture products that cater to would drive the pumps & valves specific demands from the end user. industry. These sectors include: They are predominantly present in the Power and energy: In the forthcoming agricultural & domestic sectors, which 12th Five Year Plan (2012-2017), the are highly price competitive”, the Frost government is planning additional and Sullivan report adds. The Indian 1,00,000MW of power generation valve market, on the other hand, capacity. In the renewable energy space, exists in both, the organised as well the government has set a target of
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20,000MW of solar generating capacity by the end of the 13th Five Year Plan. Oil & gas: The Indian Government’s New Exploration and Licensing Policy (NELP) is a key factor for the entry of private onshore drilling contractors. Companies like GAIL, AGCL and GGCL are investing in high proportions to increase their pipeline infrastructure. Further, the refining capacity is expected to rise to 245 million tonne per annum (MTPA) by 2015 from the existing 153 MTPA, thereby giving the country a huge surplus refining capacity of close to 92 MTPA. Irrigation: Projects worth `70 billion are expected to be cleared in the next 34 years with the government’s increased focus on and support to this industry, says a study by Frost and Sullivan. Water management sector: The ever-increasing levels of water requirement due to a high rate of activities related to industrialisation and agricultural growth has fuelled the demand for pumps in this sector. Research reports say that as per the 11th Five Year Plan, more than `1,200 billion has been allocated for installing a proper management system, which includes improving capacities to provide urban water supply, developing better sewerage & sanitation and drainage & solid waste management facilities.
POTENT PROSPECTS Given the current potential where the government is hugely spending on developing the infrastructure network in the country, there is a huge scope for the pumps & valves industry to grow and flourish. This scenario is further going to act as a catalyst for more companies to come in and be a part of this industry, which would make the industry highly competitive in future. The 12th Five Year Plan under which the government has planned an investment of about $1 trillion towards infrastructure, makes the future of the industry highly promising. arindam.ghosh@infomedia18.in