India Domestic Pumps (Less than 2.5 HP) Market Outlook to 2025
Market Overview (Demand and Supply Scenario)
India Domestic Pump Market grew at CAGR of 4-6% during the review period FY’2015-FY’2020. Depleting ground water level, rapid urbanization and rise in the number of infrastructure initiatives are some of major factors responsible for the surge in demand for domestic pumps (Less than 2.5 HP). Coimbatore, Rajkot, Ahmednagar, Kolhapur have been the major manufacturing hubs for domestic pumps (Less than 2.5 HP) in India. In-house manufacturing, procurement from contract manufacturers and imports have been primarily three strategies adopted by companies in India Domestic Pump Market.
Each company has multiple dealers scattered across the country who partner with retailers for making the products available to the customers. Dealers are responsible for stocking up products and maintaining professional relationship with the retailers. They maintain a stock of 2-3 months depending upon the location and the company. Sales Volume and Revenue, Market Coverage, Product Range, Margin Sharing and Storage Unit/Warehouse have been some of the factors taken into consideration before empanelling a dealer.
India Domestic Pumps Market Segmentation
By Market Structure (Organized and Unorganized Market)
Total Domestic Pump Market in India has been dominated by organized players, followed by unorganized players. Unorganized Players are scattered across the country. Although majority of the players are present in Coimbatore and Rajkot. The unorganized players offer products at a low price and offer replacement warranty of 12-24 months in contrast to organized players who offer a repair warranty of 12-24 months. This has placed immense pressure on organized players in terms of cost and maintaining the quality of the product at the same time, squeezing their overall margins.
By Pump Type & Motor Rating
Major pumps demanded in India in domestic pump category are Mini Monoblock Pumps, Borewell Submersible Pumps, Pressure Booster Pumps and Others. 0.5-1 HP and 1-1.5 HP is the most demanded product category in domestic pump category. Average price range for domestic pumps sold in India is between INR 4,000-12,000. CRI Pumps, KSB, Texmo, Aquatex, Lubi, Varuna Pumps and V Guard have been the leading players in the product categories mentioned above. Upcoming regions for domestic pump in India are Maharashtra, UP, Bihar, West Bengal and other Metropolitan cities.
The demand for domestic pumps (Less than 2.5 HP) was dominated by Maharashtra, Karnataka, Telangana, Gujarat, Tamil Nadu, Kerala, Delhi NCR, West Bengal, Madhya Pradesh and Bihar. Texmo Industries, CRI Pumps, V-Guard, Aqua Group are the leading players in South region.
By Distribution Channel
Major players in domestic pump market follow multiple channels of making the products available to the end users including dealers and distributor, direct sales and online channel. Dealer and distribution channel dominated the sales for domestic pumps in India followed by direct channel and online channel. Major companies have more than 1,000 channel partners scattered across the country for distribution of products.
The total domestic pump market in India is highly fragmented in nature with more than 300 brands of organized and unorganized pumps available in the market. In addition to this, organized pump market in India is moderately concentrated among top 10 players, capturing more than 80% market share basis revenue. Product Performance, Price, Product Range, Warranty, Brand Name, After Sale Service, Distributor Network, Marketing Communication, Product Life Services have been mapped as mapped as major competing parameters for companies operating in India Domestic Pump Market. Companies with large product range, wide regional presence and effective after sale services are indentified as clear leaders in the industry.
Impact of COVID-19
Domestic Pump Industry in India witnessed a decline in pump sales during the pandemic, owing to retail stores being closed and no construction activity happening in the country. Companies increased their manufacturing capacity utilization to cover the loss in domestic pump sales during Quarter 1 and Quarter 2. In addition to this, social distancing norms and regular medical checkups were performed at the manufacturing plant and office to ensure safety of workers.
Future Outlook and Projection
The demand is expected to grow with a CAGR of 2.4% and 1.1% on the basis of revenue and sales volume respectively, during the forecast period. Due to ever increasing concern of saving energy, companies are expected to increase the production of energy efficient pumps. In addition to this, rise in demand for smart pumps, depleting ground water level and rise in household construction to drive the domestic pump market (less than 2.5 HP) in India.