The Market Size for Pumps in India is Around Rs 8,000 Crore

  • Interviews
  • Feb 04,15
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The Market Size for Pumps in India is Around Rs 8,000 Crore

Recently, Grundfos Pumps India, a wholly owned subsidiary of Grundfos Holdings, carried out a 75-day nationwide campaign to showcase its end-to-end product pump solutions used in commercial and domestic buildings. On this occasion Mahathi Parashuram, Head - Public Affairs & Marketing, Grundfos Pumps India, elaborated about the company's operations and future plans

Could we have an update on the India operations of Grundfos?

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Grundfos Pumps India (P) Ltd was established on March 13, 1998. Grundfos India is responsible for sales of Grundfos' products in India, Bangladesh, Bhutan and Maldives. Currently, Grundfos India has more than 250 employees and works with 200 distributors and dealers with 20 offices across India. We provide energy-efficient pumps and smart pumping solutions for various applications - heating and hot water service systems, cooling and air-conditioning systems, industrial applications, pressure boosting and liquid transfer, groundwater supply, domestic water supply, sewage and wastewater, dosing, chlorination systems, disinfection systems, and pumps running on renewable energy.

How was the company's performance in 2014?

2014 was yet another successful year for Grundfos in India. We continued to grow financially while sticking to our core value of being a sustainable company. We installed a rooftop solar power plant at our headquarters in Chennai, through which the estimated annual power generation will be 78,000 kWh with an annual cost savings of Rs 13 lakh. We launched a new range of BMS pumps for high flow and pressure applications; MAGNA3, a circulator pump designed for circulating liquids in heating systems, domestic hot water systems, air-conditioning and cooling systems; and SEG pumps which are designed for pumping effluent and untreated domestic sewage in small communities or sparsely populated areas.

In another major development, Grundfos India joined hands with Grundfos Foundation and Sunlit Future to launch an ambitious project of installing 100 solar pumps in 100 villages. The first phase of this project is underway through which approximately 12,400 people in 28 villages will have access to clean water in the states of Madhya Pradesh, Uttar Pradesh, Orissa and Maharashtra. Our customer connect campaign covered Chennai, Hyderabad, Bhubaneshwar, New Delhi, Ahmedabad, Surat, Indore, Mumbai, Pune and Bangalore. The pumps were displayed in a 12-meter mobile trailer unit that expands into an actual 67 sq.mtr showroom. Through the mobile showroom, customers were offered a real time simulated experience of the applications of the various pumps.

What is the market size for pumps in India?

The market size for pumps in India is estimated to be around Rs 8,000 crore. Agriculture, rising urbanisation, infrastructure investment and industrialisation especially in water and waste water as well as oil and gas sectors are the major driving factors for the water pump industry in India. According to 'India Water Pumps Market Forecast & Opportunities, 2018' the Indian water pump market revenues are expected to grow at a CAGR of around 13 per cent during 2013-18. The Indian water pump market is segmented into two categories, i.e., positive displacement and centrifugal pumps, of which the centrifugal pump market is dominant.

What is the scope for this market to grow in the coming years?

With the central government's focus on various campaigns like 100 Smart Cities, Swachh Bharat and Ganga Action Plan, the outlook for this market is definitely optimistic. Renewable energy will play a major role this year too. Solar pumps too will have a major role to play in the agriculture sector. Though there is enough subsidy on electricity offered to the farming community by various state governments and the central government, volatile and erratic power supply is not conducive enough for the farmers to water their fields at the time of need.

The most efficient way to tackle this situation is by installing and operating solar pumps. We see a huge demand for solar pumps in the near future, not only in the agriculture sector but also for drinking water supply in the rural areas. We have sold more than 5,000 solar pumps in 2014, and with an expected sales growth of 20-25 per cent for 2015, the category is considered the fastest growing business segment.

What are the company's plans to expand its sales in India?

We are aiming to increase the indigenisation of our products to be 'Made in India for India', which we expect will contribute to growth in the coming years. In order to address the mass market we are looking at increasing the distribution network.

Is there any specific R&D being undertaken for Indian customers?

Globally, Grundfos spends around 5 per cent of its income on R&D. In India, our R&D focuses on designing and building products in India for India. We are also working on customising the best-in-class pumps across our international markets to suit for the Indian market. Research is an ongoing process for innovating newer and existing products in terms of product efficiency and sustainability.

Could you elaborate about the company's focus on products using alternative energy sources?

Grundfos India continues to focus on sustainability while developing all its products. The solar submersible pumps of the SQFlex range, SP with external AC/DC controller and the solar surface mounting pumps of CR flex range are an environment-friendly water supply solution and is a revolution in remote water supply and agriculture. These pump systems offer the perfect water supply solution in remote areas where water is scarce and the power supply is non-existent or unreliable.

What is the USP of Grundfos' products that gives it an edge over its competitors?

Grundfos' products are energy-efficient and focus more on consistency and reliability. In fact in August last year, Grundfos switched from IE1 to IE2 motors as a standard, which is a first for the Indian pump industry. Without precisely the right motor, even the best pump will consistently waste energy. With Grundfos' high efficiency pump and motor technology, it reduces the average pump's energy consumption by up to 60 per cent. IE2 motors are highly energy-efficient and it will help reduce the lifecycle cost of the pump and also save operational costs.

With Grundfos iSOLUTIONS, we offer a holistic system approach. Through intelligent technology, the pumps adapt precisely to system demands and deliver optimal energy efficiency, reliability and easy selection for every specific application. Grundfos iSOLUTIONS combines the full spectrum of Grundfos' offering, including standard and integrated pumps with controls, sensors, variable frequency drives, connectivity, and software to create the ultimate intelligent solution tailored perfectly to the pump task at hand, leading to less downtime and lower failure rates.

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