Fluid power industry is seeing a steady growth now

Home
Interviews
Fluid power industry is seeing a steady growth now

Fluid power industry is seeing a steady growth now

Interviews
Nov 01,17

With investment picking up in construction sector, the demand for construction equipment is increasing, which in turn is driving the mobile hydraulics market. Catering to the requirements of construction equipment industry is Walvoil (a member of Interpump Group SpA), one of the leading global manufacturers of hydraulic control valves and complete mechatronic systems for the market of mobile equipment. Established in 2005 in Bangalore, Walvoil Fluid Power India Pvt Ltd, the Indian subsidiary of Walvoil SpA, has now grown into its second largest production plant in the world. In this interaction with IPF, B Seshnath, CEO & Managing Director of Walvoil Fluid Power India, discusses the present status of fluid power industry in India and latest trend witnessed by the industry.

Kindly brief us about Walvoil Fluid Power India.

We are an Italian company with a global presence and a vast range of products that cater to applications in infrastructure, construction, agriculture, material handling, industrial sectors and other specialised applications too.

The product range includes: hydraulic mobile control valves with manual, electro-hydraulic, electro-pneumatic, proportional and electronic controls; as well as remote controls. We are among the largest manufacturers in India, with a widespread OEM base. We cater to the needs of virtually all manufacturers in the above sectors. Besides, our products are exported to OEMs in various countries worldwide; as well as supporting the needs of other Walvoil subsidiaries worldwide.

How is the fluid power industry in India at present? Of the three large segments - mobile hydraulics, industrial hydraulics and pneumatics - which segment offers high growth potential & why?

After a lull over the past two years, the fluid power industry is seeing an expanding market and a steady growth now. We expect it to continue growing at 10-12 percent per annum, over the next three years. The growth is driven largely by a rapid uptick in demand from the construction equipment manufacturers, who are looking to cater to the needs of the Government of India’s thrust in infrastructure development; as well as other initiatives such as the smart city projects announced recently. Consequently, backhoe loaders, excavators, cranes and tippers are seeing surging demand and causing the outlook of the mobile hydraulics sector to brighten up sharply.

The capital goods sector is on an even keel and seeing a steady increase in demand. This is because private sector investments in new capacity creation is yet to pick up and hence, the industrial hydraulics and pneumatics component manufacturers are not seeing the steep demand surge, as is evident in the mobile hydraulic sector. It is expected that the tempo in industrial hydraulics will also start picking up in the medium term.

Has the slow growth in industrial demand and dearth of new projects and investments in sectors like steel, power and infrastructure affecting the fluid power industry?

Definitely, the lower credit offtake from banks and lower-than-expected investments in new capacity creation by the private sector have adversely impacted the growth in industrial hydraulics and pneumatics.

Which are the new areas and applications, where companies in fluid power industry are looking to diversify?

The defence sector is being keenly explored, as there is a large scope here on account of the ‘Make in India’ initiative. Furthermore, automation and the gradual implementation of industrial Internet of Things (IIoT) technologies in industry will lead to growth for industrial hydraulics and pneumatic automation.

What are your growth plans for the company?

We are expecting a growth rate of around 12-14 percent year-on-year till 2019.