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.