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February 20, 2025
Wilo India expects 15% revenue contribution from exports: Hemant Watve, CMD, Wilo India
In an interview with Indian Chemical News, Hemant Watve, CMD, Wilo India talks about the emerging scenario of the pump industry in India as well as future plan, product diversification and expected business growth of his company. Excerpts from the interview:
How do you envision the future of the pump industry in India over the next five to ten years?
The Indian pump industry is projected to experience an annual growth rate of 10%, driven by multiple factors such as increasing market demand across various industries and key government initiatives. These include programs like “Atma Nirbhar Bharat,” Production Linked Incentive (PLI) scheme to promote import substitutes, and policies aimed at enhancing sustainability and energy efficiency.
The push for local manufacturing in diverse sectors will significantly increase domestic demand for pumps. Moreover, the government’s focus on water conservation is also expected to drive increased demand for pumps.
The Indian government has made BIS certification mandatory for motors. The pump business is now being regulated by European standards that emphasize a Minimum Efficiency Index (MEI) of 0.7. This will further push the demand for energy-efficient pumps, offering opportunities to replace low-efficiency pumps in India.
With the government heavily subsidizing irrigation pumps and pushing for the adoption of solar-powered pumps due to their cost-effectiveness and environmental benefits, the demand for solar pumps is rising.
How would you explain Wilo India’s current position in the market compared to its competitors?
Wilo India stands out with a diverse product portfolio that serves a wide range of applications, including water supply, HVAC, wastewater management, industrial processes, Firefighting and the building services market for both commercial and residential segments. This extensive product range gives Wilo India a competitive edge by enabling them to meet the varied needs of different industries and customers.
Wilo’s new, state-of-the-art manufacturing facility in Shirwal, 50 km from Pune, is equipped with advanced manufacturing technologies. Also, Wilo aims to offer faster delivery times, improved product availability, and enhanced after-sales services, thereby strengthening its position in the market.
How was the year 2024 for Wilo India and what are your expectations from 2025 in terms of revenue, PAT and market reach?
Notwithstanding volatile external business environment and geopolitical challenges, Wilo India has successfully achieved a double-digit growth. All of our market segments have experienced double-digit growth. Looking ahead, with a strong order backlog, we are confident of achieving above normal growth in 2025, along with healthy growth in Profit After Tax (PAT). We intend to continuously improve our market share in various segments.
You are expecting 25% of your revenue from exports? What is your strategy to achieve this target? Which countries are on your radar?
Recently, the WILO Group rolled out the "Region for Region" strategy. This approach aims to strengthen decentralized entrepreneurial responsibility across the regions. Under this structure, three regions have been established: Wilo Europe, Wilo AMEA, and Wilo Americas.
We are now part of the AMEA region, which allows us to place greater focus on Southeast Asian countries, the Middle East, and African nations, enhancing our customer-centric approach and expanding our regional footprint. Given a hostile geopolitical environment, we anticipate a 15% revenue contribution from exports.
You keep on introducing innovative pumping technology. What new innovative products are in the pipeline for the India market?
Recently, we launched the Wilo Fertigation system, a cutting-edge piece of equipment designed for the efficient and precise application of fertilizers to crops. Equipped with advanced technology, the trolley ensures uniform and accurate fertilizer distribution, helping farmers cover larger areas in less time while optimizing fertilizer usage. This not only reduces waste but also boosts overall productivity, saving both time and effort for farmers.
Additionally, Wilo India has added another significant achievement to its portfolio by commissioning a Metallic Volute Pump with a flow rate of 17,000 m³/hr, a head of 108 meters, and a 6.8 MW motor at the Kempwad Lift Irrigation Project in Karnataka.
Looking ahead, we have several exciting products in the pipeline such as stamped steel pumps for the food industry, reversible pump turbines, high-efficiency vertical turbine range, Seal-less pumps and emergency cooling pumps for nuclear power plants amongst others.
How is the response of your vertical execution pumps from the market?
Excellent, designed for vertical installations, these pumps are ideal for applications such as water supply, HVAC systems, Booster systems in high rise buildings and industrial processes, especially where space is limited.
Our vertical execution pumps are engineered to handle a wide range of fluids, including clean water, hot water. Key features include low noise operation, easy maintenance, and energy-saving capabilities. Customers value the quality and durability of these pumps, as they are built to perform reliably under demanding conditions and provide long-lasting service.
How is Wilo India leveraging new technologies such as IoT and smart solutions in its products?
We are leveraging IoT technology through the integration of smart sensors and data analytics in customer’s pumps and pumping systems. These sensors collect real-time data on various parameters such as flow rates, pressure, temperature, and energy consumption
Furthermore, Wilo India's smart solutions enable energy optimization by analyzing data and adjusting pump performance based on real-time demand for booster pumps and HVAC systems. This results in energy savings and operational efficiency, aligning with the growing emphasis on sustainability and energy conservation.
Wilo India currently operates three manufacturing facilities in Kolhapur and Kesurdi and Kolkata. What is your further expansion plan in the next 2-3 years?
We have earmarked approximately 25,000 sq mt of space at the Kesurdi site for future expansion, and we will discuss our growth and expansion plans at an appropriate time in future.
What are the biggest challenges facing the pump manufacturing industry in India today?
Industry is facing several challenges that are impacting its growth and profitability. One of these challenges is the rapid advancement in technology and the integration of smart pumps with other devices and systems. Manufacturers need to invest in R&D to keep up with these advancements.
This commoditization of the pumps is resulting in price war and therefore margin erosion. Customers are more concerned about capital expenditure (Capex) while basing their purchase decisions instead of life cycle cost assessment. Otherside, dealing with MSME vendors creates a challenge in terms of payment timelines, as manufacturers are required to pay them within 45 days, which can affect cash flow if payments are delayed, while not even Government customers pay us within 45 days.
Navigating the complex web of industry-specific and regionally specific regulations, including environmental regulations, safety standards, and compliance with the Bureau of Indian Standards (BIS), is crucial yet challenging. Also, the uncertainty in the global supply chain poses significant challenges due to disruptions and shortages of materials, geopolitical risks, and logistical complexities.
Customers are preferred to buy pumps with allied equipment such as Motors, Vibration monitoring systems, VFD’s for which Pump vendors have to submit CPBG, PBG which blocks the Bank Limits.
Where do you see Wilo India in 2030?
In 2030, I envision Wilo India as a leading player in the water management and pumping solutions market in India as well as internationally. With a strong focus on innovation, sustainability, and customer satisfaction, Wilo India will be at the forefront of technological advancements, offering smart and energy-efficient solutions to meet the growing demand for water management and conservation. The company will have established itself as a trusted partner for customers, providing not just products but also comprehensive solutions and services.
February 16, 2025
India is central to Nouryon's global strategy: Charlie Shaver, Chairman and CEO, Nouryon
In an exclusive interview with Pravin Prashant, Executive Editor, Indian Chemical News, Charlie Shaver, Chairman and CEO, Nouryon shared his views on industry trends and challenges, flagship products, R&D, innovation centre, sustainability, net carbon zero, growth opportunities, and strategic goals. Excerpts of the interview:
What sort of industry trends and challenges Nouryon is foreseeing for the specialty chemical industry in 2025 and how is Nouryon responding to them?
India's chemical market is transforming due to rapid industrialization, a growing upper middle-class, and a focus on sustainability, creating growth opportunities in the Indian end markets including pharma, personal care, cleaning, crop nutrition, paints, coatings, and packaging.
Our strategy in India is built on three pillars: innovation with a strong focus on sustainability, targeting high-growth end markets, and enhancing commercial and cost productivity. These principles guide our operations across our growth end-markets, including agriculture, personal care, paint and coatings, and packaging, ensuring we remain at the forefront of market needs.
A major trend is the shift towards sustainability. The demand for eco-friendly products and sustainable practices is redefining the chemical industry and leading to growth opportunities. Nouryon actively participates in this transition by delivering innovative and sustainable solutions that answer customers' needs. For our 2023 performance, we received an A- score for global climate leadership from CDP and an EcoVadis Gold rating, placing us in the top 5 percent of companies then rated by EcoVadis.
Another critical trend is digital transformation. Advanced digital technologies are optimizing operations, enhancing efficiency, and driving product innovation. Nouryon actively leverages digital tools to streamline processes, elevate customer service, and fuel growth. Digital transformation remains a cornerstone of our strategy, keeping us agile and competitive.
India’s market potential is vast. Nouryon is uniquely positioned to seize these opportunities, drive growth, expand our market presence, and play an integral role in India’s development.
What are some of your flagship products and how do these address current market needs?
Our global expertise, combined with deep regional insights, allows us to develop high-performance products that meet the evolving needs of our customers. Some of our key products include: Specialty polymers - Our portfolio includes dispersants, anti-scalants, rheology modifiers and thickeners, providing flexibility to various formulations; Surfactants and chelating agents - These improve the performance, and stability in personal care, cleaning, and agricultural applications, and enable the development of eco-friendly products; and Specialty chemicals and intermediates - Products including Bermocoll cellulose ethers, Levasil colloidal silica, Expancel microspheres and Kromasil spherical silica enhance the performance, durability, and sustainability of paints and coatings, sealants, automotive parts and pharmaceuticals. Our agricultural solutions support sustainable farming and food security. By continuously advancing our offerings, we help customers achieve efficiency, performance, and environmental responsibility.
How does R&D at Nouryon influence both product development and overall business strategy?
At Nouryon, Research and Development (R&D) is the cornerstone of both our product development and business strategy. By leveraging technical expertise and customer collaboration, we create differentiated products that meet market demands. Our R&D focuses on both "technology push" and "market pull" strategies. By integrating insights from our global laboratories, suppliers, and customers, we develop robust product portfolios that offer unique value propositions. Sustainability is deeply embedded in our R&D, leading to the development of environmentally friendly solutions and answers to consumer buying behaviour.
Our new Innovation Center in Mumbai serves key end-markets including paints and coatings, agriculture, and home and personal care, coordinating with global R&D and sales teams to ensure tailored solutions. By advancing our R&D capabilities and fostering innovation, we ensure that Nouryon remains a trusted and reliable partner across industries.
Key focus areas of the New Innovation Centre and how will it align with the regional and global market demands?
Our Innovation Center in Mumbai addresses regional and global market demands, focusing on key markets such as paints and coatings, agriculture, and home & personal care. It delivers sustainable, advanced innovative solutions by collaborating with sales teams and global R&D networks, providing tailored innovations for customers in India and beyond.
In Paints and Coatings, the center supports applications including water-based paints, asphalt, and building and construction (B&C) products, with a specialized B&C lab complementing our flagship lab in Stenungsund, Sweden, extending support across the Indian Subcontinent, Southeast Asia, and Middle East and Africa.
Our Agriculture lab, with a state-of-the-art Agriculture Dry lab, advances agricultural technologies with specialized machinery for seed coatings and powder formulations, ensuring enhanced seed protection and performance. We also conduct germination studies to reinforce our innovation leadership in agriculture.
The upgraded Home and Personal Care lab develops innovative applications for surfactants, chelating agents, fabric softeners, hair styling polymers, and starches, aligning with customer needs and sustainability goals.
The Mumbai Innovation Center embodies Nouryon’s strategy of collaboration and customer-centricity, aligning with global R&D and sales teams to address regional challenges and create value in high-potential markets.
What is your overall expansion strategy? Where does India fit into Nouryon’s global growth strategy? What role does an expanded Global Service Center play in achieving this vision?
India is central to Nouryon's global strategy, serving as a key market and hub for innovation and growth. Our investments include the expanded Global Service Center and the new Innovation Center in Mumbai, leveraging India's rich talent and advanced infrastructure to deliver tailored solutions and drive global growth. This expansion leverages India’s vast talent pool to foster innovation and positions Nouryon as an employer of choice. Additionally, Nouryon has recently been awarded the Great Place To Work Certification in India for 2025, further solidifying our reputation.
The expanded Global Service Center in Mumbai, now occupying 100,000 square feet, is a vital part of our operations hosting both commercial teams and functional hubs, enabling seamless integration with global teams and bolstering customer satisfaction. Complementing this is our long-established manufacturing presence in Mahad, Maharashtra which hosts an organic peroxide production site and metal alkyls refilling station, that has been operational for over three decades. Our team in India collaborates closely with global operations to ensure agility and competitiveness in emerging markets, supporting the Indian subcontinent, Southeast Asia and the Middle East and Africa, driving innovation and fostering growth across these fast-growing regions.
India enhances our efforts to serve customers globally, improve operational excellence, and strengthen our competitive edge in dynamic markets. This investment underscores Nouryon's commitment to customer-centricity, innovation, and sustainable growth.
What steps Nouryon is taking to integrate sustainability into its operations and product portfolio globally? How are you planning to achieve net carbon zero?
At Nouryon, sustainability is integral to our strategy, operations, and products. Our “Commitment to a Sustainable Future” includes: Continuously improving our safety and environmental performance; Growing and innovating to create sustainable solutions enabling customers to be more sustainable; and engaging and partnering with employees, customers, suppliers, and society to drive sustainable progress.
Our 2030 targets include a 40% reduction in absolute GHG emissions, a 10% decrease in total waste intensity, and a 10% decrease in freshwater consumption intensity, all from a 2019 base year. We aspire to achieve net-zero emissions by 2050 through carbon operational excellence, energy transition, innovation, and value chain collaboration.
Our holistic approach integrates environmental, social, and economic dimensions, delivering innovative and sustainable solutions that answer customers' needs.
How is the company addressing the growing global demand for specialty chemicals in sectors such as agriculture, personal care, and paints and coatings with respect to sustainability? What is the new sustainable product portfolio that you are developing in your labs globally?
Nouryon addresses the growing demand for specialty chemicals in paints and coatings, agriculture, and home and personal care, with a focus on sustainability. Our tailored solutions help customers achieve growth and sustainability goals. Examples include: Paints and Coatings - Cool roof coatings and environmentally friendly antimicrobial agents and Low volatile organic compounds and expandable microspheres for solar reflectance in cool-roof coatings; Agriculture - Biodegradable co-formulants and green solvents for crop protection; Crop nutrition products that enable efficient water use ; and Improved crop yield solutions and water conservation solutions; and Home and Personal Care - Green chelates, naturally based and biodegradable cleaning and personal care products; Cleaning solutions for homes, hospitals, and more; and Natural ingredients for hair and skin care formulations.
Nouryon's commitment to sustainability and innovation ensures we provide cutting-edge solutions that drive growth and success in our end-markets. This includes our local initiatives to support regional sustainability efforts and meet specific market needs, reinforcing our position as a leader in sustainable specialty chemicals.
How is Nouryon leveraging digital technologies to enhance operations and product development?
Nouryon leverages digital technologies to enhance operations and product development by integrating advanced digital tools such as artificial intelligence (AI) and Internet of Things (IoT). This enhances efficiency, drives innovation, and strengthens customer engagement through data-driven insights, predictive modelling, and collaboration. Digitalization streamlines workflows, optimizes processes, and ensures agility and competitiveness, allowing us to deliver value and meet market demands effectively.
What are Nouryon's strategic goals for the next five to ten years?
Nouryon’s strategic goals for the next five to ten years focus on: Innovation and sustainability - Deliver innovative, sustainable solutions to meet customer needs, today and in the future; Targeting growth markets: Prioritize expanding and emerging markets, recruit top talent, and establish innovation centers; and Enhancing productivity: Improve cost and commercial productivity with a focus on continuous improvement.
We aim to lead the specialty chemicals industry by exceeding customer expectations, expanding our sustainable product range, and optimizing production facilities. India is a crucial part of our strategy, with investments aligned to support its growth and market needs.
How do geopolitical and economic changes impact Nouyon's operations and market strategies?
Geopolitical and economic changes impact Nouryon's operations and market strategies by causing supply chain disruptions, regulatory changes, and currency fluctuations.
To mitigate these risks, we: diversify our supplier base and invest in local sourcing; implement robust risk management and hedging strategies, monitor regulatory developments and adapt our strategies, and analyze market trends to align our product offerings and marketing.
We remain flexible and agile to seize growth opportunities and foster strong relationships with global partners. This proactive approach ensures the resilience and sustainability of our operations and market strategies.
How are you looking at growth opportunities in the India market for Nouryon with respect to greenfield and brownfield operations?
India's growing economy and demand for specialty chemicals offer us significant growth opportunities. Our new Innovation Center in Mumbai and the expanded office space exemplify our long-term commitment to growth in the region. Nouryon is also pursuing opportunities to optimize and expand existing facilities. We will continue to enhance our Global Service Center in Mumbai and evaluate the expansion of our manufacturing facility in Mahad. Nouryon's comprehensive approach to growth in India positions us well to capitalize on emerging opportunities and strengthen our leadership in the specialty chemicals industry.
