A matured industry, the Pumps industry is one of the older industries existent from India that has stagnated in growth lately due to the slump in the economy and infrastructural development.
With a market capitalization of INR 6,800 Crores, the major players in the market that are listed are Kirloskar Brothers, Shakti Pumps, and WPIL having high share in the market.
The Indian Pump industry is growing at a high scale because of the increasing infrastructural development needed by companies and agriculture to enhance productivity of crops and efficiency related to cost. This will lead the near INR 10,500 crores organized segment of the industry to reach INR 15,000 crores by 2020. The major segments that the industry thrives on are agriculture, waste management services and building/infrastructure projects.
The industry has many different segments based on type of pumps being produced by the manufacturers:
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Centrifugal pumps have its major use in irrigation and agriculture, resultant to this, cheaper versions- Single Stage Radial and Submersible pumps gain prominence in terms of market share with 70% of the domestic consumption in Centrifugal pumps. The positive displacement pumps are used for more commercial use in Power and Oil & gas industry and the Rotary pumps are responsible for 72% of the total production. However, between the two segments, Centrifugal pumps dominate the market with 92% of the sales coming from them.
Due to the recent macroeconomic slowdown and the near stagnation of the infrastructure development, there has been tremendous pressure on the pricing of pumps due to the less demand in the industry. Some of the major players in this market are CRI, Crompton Greaves, Kirloskar Brothers, KSB Pumps, WPIL, Dynamatic Technologies and Texmo.
The opportunities in the pumps industry are plentiful in the coming years, partly because of the infrastructure push that the NDA government looks to give in 2014-19, but also because India looks to harness hydroelectricity for power generation and there is a growing need for better agriculture produce and productivity, which will promote this industry by boosting demand for high quality pumps.
With an estimated production of around 2.5 Million units, with only 5% of the total production being imported, it is imperative that the market has a high number of large and small players. In order to be competitive in this industry, focusing on key deliverable and critical success factors will be essential for companies to gain a competitive edge. They should hedge their risks of a price war by gaining increased margins in the industrial segment. By focusing on a target market and a set of customers rather than expanding inorganically across the industry and its products will help companies to grow internally. Exports is also a key growth area as India does export to more than 100 countries with US and Germany being major markets with 14 and 12 percent share respectively.
Direct expansion into the agriculture sector is seemingly tough, thus better marketing strategies and tie-ups with critical partners like micro finance groups will ensure market depth. All this does boil down to the fact that companies will only prosper if their products are energy efficient, innovative, high quality and yet manufactured at fully optimized costs.
What this report contains:
A detailed overview of the industry
Structure of the industry from both, domestic and international perspectives
Related industries that this industry has inter-dependencies with and their understanding
Detailed analysis of industry segments in terms of the value and depth of corresponding market
Analysis & insights about the elements and critical success factors of this industry using strategic models
A forecast on the state of this industry in 2020, predicting the growth and movement patterns for 2016 - 2020
Our professional analysis on the future of the industry based on strategic actions adopted by major industry participants
Quantitative estimates and forecasts of the growth prospects of the industry using revenue and financial forecasting models