Coimbatore reluctant to enter industrial pump segment

Despite vibrant business opportunities in industrial pumps sector, Coimbatore, which boasts of the largest pump manufacturing activity, is reluctant to enter this area and still sticking to agricultural pumps. The domestic demand for pumps is correlated to investments in industries such as oil and gas, petroleum, mining, construction and the farm sector. The industrial segment is the niche of organised players as the requirements are more technology-intensive. According to Southern India Engineering Manufacturers’ Association (Siema) president C R Shanmugasundaram, Coimbatore’s industrial revolution began with pumps and even today, it is the main source of supply to most of India. It supplies 60% of all pumps used in India.

“Only organised players such as KSB, Kirloskar Brothers, BHEL and Sulzer India have the ability and the technical expertise to provide quality products to handle complex processes in the industrial segment,” he added. Coimbatore boasts of many globally well-known pump companies that include CRI Pumps, Fisher Pumps (the largest producer of domestic pumps in the country), Suguna Pumps and AquaSub Engineering (that owns the brand Texmo Pumps). Although these companies rake in profits and are known for their quality and export excellence, none of them concentrate on the industrial pumps segment. These companies produce over 40 types of pumps, including mini-monoblocks, centrifugal submersibles, jet and special pumps for open wells. The pumps market, especially that in the agricultural segment, is dominated by the unorganised sector, which offers products as much as 30-40% cheaper than organised players. “The margins are wafer-thin in the manufacture of industrial pumps and products due to tough competition. It may also be the reason why Coimbatore is shying away from this booming sector,” Shanmugasundaram said. Industrial sources told ET that the demand for agri pumps is substantially influenced by monsoon vagaries and also the ban on boring by various state governments.

The second is influencing the market very badly whereas industrial pumps sector is spread across many areas and with the power sector gaining priority these days, industrial pumps business is doing extremely well. V Krishnakumar, chairman, Indian Pump manufacturers’ Association (IPMA), told:“Increased industrial activity, on the back of rising exports and domestic consumption, has led to increased demand for pumps in the industrial segment. User industries such as petrochemicals, power, chemicals and pharma, among others, are in expansion mode and this translates into greater demand for pumps, which form an integral part of the project.” Siema, along with IPMA, is planning to bring in overseas delegates and technical expertise to throw some light on the wide business opportunities available in the industrial pumps manufacturing sector. Rising Re hits pump exports THE surging rupee is proving to be a drag for the Indian pump industry, reports Our Bureau from Hyderabad. The industry, with a market size of Rs 5,000 crore and growing at 15% pa, will see a minor rise in exports globally.

“The global pump export market is around $26 billion and India’s share in it was 1% till March 31, 2007, and is going to be 3% by March 31, 2008,” an official said. The slack is attributed to the rupee appreciation, which has a negative impact on the exports. Indian Pump Manufacturers’ Association (IPMA), the apex body for organised sector in the pump industry, currently exports to 70 countries world-wide. The client list ranges from Kirloskar and Larsen & Toubro to KSB Pumps, Grundfos and Sulzer. “The only respite can be through domestic sales. While IT industry helps application of pump-designing, pharma and petroleum industries could be potential buyers,” the official said.

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