INDIAN PUMP MANUFACTURERS’ ASSOCIATION (IPMA)

National Workshop on Agricultural Demand Side Management (AgDSM)

Presentation on Indian Pump Industry – 2016

ByBharat B. Patel, President

Indian Pump Manufacturers’ Association (IPMA)

Organized by:EESL, New Delhi

Monday, 18 January 2016

WELCOME

WELCOME

Background of agricultural pump industry in India

Growth of agricultural pump industry in India in past

Present and future production capacity of agricultural pump Industry in India

Scenario of energy efficient pump sets production in India Capacity of producing energy efficient pump sets in India Achievements of Indian pump industry in R&D; etc.

TOPICS TO BE COVERED

• IPMA was established in 1951

• No. of IPMA member – 120 nos.

• Total turnover of pump industry : Rs. 20,000 cr. - IPMA members – Rs. 11,000 cr. - Non-IPMA members – Rs. 9,000 cr.

INDIAN PUMP INDUSTRY – SCENARIO 2016

Product No. of licenses registered under BIS (as on 16.01.16)

No. of brands under BEE(as on 16.01.16)

Submersible pumpsets (IS 8034) 617 264

Openwell Sub. Pumpsets (IS 14220) 292 91

Electric Monoset Pumps (IS 9079) 114 10

Agriculture43%

Irrig. WS6%

Domestic30%

Industrial13%

Misc.9%

4

SECTORWISE DEMAND OF PUMPS IN INDIA

BACKGROUND – AGRO PUMPS IN INDIA

• The agriculture pump market in India is valued at about INR 8600 cr. in 2014-15, and is expected to grow @ 7 to 8 percent annually.• Agro pumps growth depends on Govt policy and investments – Star labeled and solar pumps being at focus• Due to Erratic monsoon climate and scarcity of water across areas in the country, govt and manufacturers have to work together for agricultural growth of the country• Fluctuations in ground water level is also increased demand of agricultural pump set in the market• Rising population & urbanization boosts the demand for pumps in the market• Healthy economic outlook also motivates the growth of the Indian pumps industry• More than 600 manufacturers at large, medium and small scale

GROWTH OF AGRICULTURAL PUMP INDUSTRY IN INDIA

• In spite of several challenges, Pump manufacturers in India are continuously improving to enhance productivity, quality and service.

• There are lot of engineering expertise in pump manufacturing , so that we are able to offer a wide variety of very efficient products, from renowned manufacturers.

• Market for the Energy Efficient Agriculture Pumps Growing because of the 5 star rating promotion and subsidy benefits given to farmers with new connection.

• Water shortage Due to unreliable monsoons, deep ground water level will fluctuate and it increase shortage of water• Electrification in Rural Areas it will boost the requirement of agricultural pumpsets• Availability of agricultural land Tendency to convert wasteland to cultivating land• Price sensitivity Though price sensitivity remains high, customers’ awareness increased towards quality and energy efficient products• Costs of raw materials Increasing raw material costs (e.g. copper, aluminium, steel) impact pump prices

GROWTH OF AGRICULTURAL PUMP INDUSTRY IN INDIA

CHALLENGES TO AGRICULTURAL PUMP INDUSTRY IN INDIA

• Most unpredictable business hence difficult to maintain inventory specially to MSMEs

• Different site conditions in different states w.r.t. voltage band, water level, quality of water, etc.

• Poor selection of the pump sets with respect to head and discharge and poor maintenance

• Approval Process for standards and Departmental approvals , varies from department to department and State to state.

PRESENT AND FUTURE PRODUCTION CAPACITY OF AGRICULTURE PUMP INDUSTRY

Summary of Production Capacity

Product Type Star rated pumps

Approx. production /

year

Total present capacity (Approx.)

Monoset Pumps 1 L 3.5 L – 3 Ph9 L – 1 Ph

7L – 3 Ph18 L – 1 Ph

Openwell Submersible pumps 1.25 L 3.5 L 7 L

Submersible Pumps 1.5 L 9 L 19 L

Note : Production Capacity can be increased by investment of nominal capital and man power

FUTURE REQUIREMENT OF AGRICULTURAL PUMPSET IN INDIA

REGIONWISE POTENTIALITY OF SUBMERSIBLE PUMP IN INDIA

REGION STATE IN REGION POTENTIALITY IN QTY.

NORTH INDIA

HARYANA 175000UTTAR PRADESH 150000PUNJAB 137500HIMACHAL PRADESH 25000JAMMU AND KASHMIR 12500TOTAL - A 500000

SOUTH INDIA

ANDHRAPRADESH 150000KARNATAKA 125000TAMILNADU 87500KERALA 25000TOTAL - B 387500

WEST INDIA

RAJASTHAN 150000MADHYAPRADESH 137500GUJARAT 137500MAHARASHTRA 125000CHHATISGARAH 75000TOTAL - C 625000

EAST INDIA

WEST BENGAL 112500JHARKHAND 75000BIHAR 75000ORISSA 75000AASAM 25000TRIPURA/SIKKIM 12500NAGALAND/MEGHALAYA 12500TOTAL - D 387500

TOTAL A+B+C+D 1900000NOTE - ABOVE SUBMERSIBLE PUMP POTENTIALITY COVERED 3" TO 10" DIA. BOREWELL SUBMERSIBLE PUMP

• According to Ministry of Agriculture it accounts for 14% of India’s

GDP Project Details

• India`s Agriculture sector consumes about 140 billion units a year

which is equivalent to around 18% of total National electricity

consumption of India

• The average efficiency level of in-efficient non-star rated pump sets

are in the range of 25%-30%

• Efficiency level of star rated energy efficient pump sets is 40%-45%

• Potential of 20% savings is estimated by mere replacement of in-

efficient pump sets with star rated pump sets

SCENARIO OF ENERGY EFFICINT PUMPSET IN INDIA

SCENARIO OF ENERGY EFFICINT PUMPSET IN INDIA

LIST OF STAR RATED PUMP MANUFACTURERS IN INDIA HAVING MORE THAN 100 STAR RATED MODELS

TOTAL MANUFACTURERS OF STAR RATING MODELS AS PER IS 8034 IN INDIA : 266 NOS.

SR.NO. COMPANY Total Star Rated Models (Nos.)

1 VARUNA 3282 PLUGA 2393 WATERMAN 2294 U-NEEL 2275 CROMPTON GREAVES 1916 AMRUT 1817 C.R.I.PUMPS 1708 TEXMO 1679 MBH PUMPS 148

10 SHAKTI 14611 FALCON 13812 OSWAL 13513 CHETAN 12414 SILVER 12115 UNNATI 10716 ANGEL 100

Source : BEE’s website (as on 21.12.2015)

• In 100 mm borewell dia. submersible pumpsets, mass production technologies with noryl impellers• Innovation and cost effective manufacturing of Investment Casting and Fabricated stainless steel Pumps to increase the pump efficiency.• Development of 50ft and 60ft head per stage pumps.• Understanding the Voltage conditions and design pumps as per customer requirements• Burnishing process started to reduce friction losses in motor and hence to increase motor efficiency• Solar pumping system for farming• Submersible DC motors are developed for Solar Application• Sea water pumping system for power generation• Specialized pumps for Oil and Natural Gas Sector, Mining and Metal Ore refining sector, Steel, etc.• Sewage and waste water pump solutions in India

ACHIEVEMENTS OF INDIAN PUMP INDUSTRY IN R&D

Production capacity of producing energy efficient agriculture pumpset : 50 lakhs pumpset per year

IPMAer means;

Innovator, who sets new trends

Power conserver of the nation

Manufacturers of the pump of highest quality

Abiders of good engineering practices

CAPACITY OF PRODUCING ENERGY EFFICIENT PUMPSET AND ACHIEVEMENT IN R & D

Proposed MethodologyBy

Indian Pump & Manufacturers’ Association (IPMA)

For successful implementation of Ag-DSM Project

Ag-DSM - Pumping Program

Present Scenario of Agriculture Pumping

• There are 2.1 Crore electrified pumps in India, being used for agriculture and consuming 92.33 Billion units energy every year, contributes approx 22% of total electricity consumption of India.

• Energy Saving potential in Agriculture Pumps is approx 27.79 Billion Units.• At present Farmer is getting electricity either free or on very low cost (Flat

Rate or Rs. 1 to 1.5/Unit) and that’s why farmer is not interested to improve efficiency of Pumps.

• Even after very low tariff or on flat rate there is huge theft of electricity in agriculture.

• The present average efficiency of the pumps installed is approx 22 to 30%• There are two major reasons of pumping inefficiency the first one and most

important is selection of pump set (Head and Discharge combination in terms of pump stage and model) and second one is inefficient commercial pumps.

Pump Life Cycle

Pump Capital cost; 5% Mainti-

nance cost; 5%

Electrcity Cost; 90%

% Cost During Life Cycle

Pump Capital costMaintinance costElectrcity Cost

Present Ag-DSM Methodology• The present Ag-DSM Projects invites bids from either Manufacturer or

ESCO Company, for the “Design, Manufacture, Supply, Dismantling & Installation of 1,00,000 nos. of Agriculture Pumps with 1 Year Warranty and 4 to 5 years Repair & Maintenance.

Having Competencies to Manufacture Energy Efficient Pump

Not Having Team to Manage Projects and 5 Year Maintenance

High Cost for 5 Year Maintenance

Only Manufacturer

Cost of Pump Becomes High

Investment of Product and services is Difficult

Difficult to Find out all Kind of required Pumps

Only ESCOCompany

Proposed Methodology-1

EESL

ESCO (Execute the Project ,

establish the saving, and remote monitoring of EE

Pumps)

Manufacturer(Rate contract With EE Pump

Manufacturer)

Proposed Methodology-1Step-1

• By this No. Of Manufacturer will BID and PMC will get competitive price and required quantity at any time, which reduce the lead time of project execution.

EESL Will Float a Tender

•For The Empanelment of EE Pump Manufacturer•Rate Contract will be done with No. of Manufacturer •For EE Pump with Controller with Defined Specifications & One year

standard warranty only

Payment to the Manufacturer •70% Payment will be made after supply of Pumps

•20% After achieving of Required efficiency/Results•10% after successful completion of warranty period of one year

Proposed Methodology-1Step-2

Option 1Separate Tender for ESCO – Based On Per site Cost • Tender will be awarded based on less cost per site• Selection, Installation and Maintenance of EE Pumps • Achieve and sustain efficiency/saving• Establish and Maintain Remote Monitoring system

Payment to the ESCO Company – Per Site Basis

• Fix Cost Per site Basis• 60% After success full Installation and achieving the efficiency/saving • 10 % after Establishment of Remote Monitoring system• Balance 6% each year after success full completion, for 5 years

Proposed Methodology-1Step-2

Option -2 Separate Tender for ESCO – Sharing Basis

• Tender will be awarded, who offer higher sharing to the EESL• Selection, Installation and Maintenance of EE Pumps • Achieve and sustain efficiency• Establish and Maintain Remote Monitoring system

Payment to the ESCO Company – Sharing Basis b/w EESL and ESCO Based on Tender

• 50% on deemed saving approach after achieving of efficiency/Saving and establishment of Remote Monitoring system

• Balance 10% each year after successful completion of a year for 5 years

• This will be responsibility of the EESL to float tenders, investment, take payment from concerning DISCOM, awareness among farmers and other related issues.

• EESL/ESCO Shall also establish a common portal on which Manufacturer will provide the detail of star rated pumps with head and discharge with lead time of supply, so that ESCO Can select the pumps from them, as well as entire project shall be updated on the same at each step.

• By the remote monitoring system transparent data of power consumption can be obtain, further remote access (ON/OFF) of the pump through mobile may also be provided to farmer, farmer may also send complain through this.

Proposed Methodology-1

2nd ProposalAGDSM-WITH SOLAR PUMP

• AGDSM/ESCO Model For Solar Pump, will be workable for any Bidder with 6 years pay back and working Life for 20 Years.

• Consideration for ESCO-Solar Pump Model– Subsidy of 30% (Central Government) for Capital

Investment– Power cost for Rs. 7/Kwh (After saving can be supplied to

Industrial customer.– Interest On Capital 12.5%– Detail Calculation ESCO SOLAR

Benefits of Solar Based ESCO

• No capital investment to Generate Power plant and Transmission and Distribution Infrastructure which cost Rs. 30 to 40 Million Per MW, and approx 20 Million Per MW for T&D.

• Life span of Solar Module is 25 Years, project can be design for 20-25 years.

• No chances of Theft, Losses during T&D• For Farmer, reliable electricity during Day Time, However in

conventional electricity farmer get it mostly during Night Time• The saved electricity can be supplied to Industries.• Need not to constant monitoring for energy saving achieved• Additional Benefits can be taken By connecting Grid to obtain the

power generated during non agriculture season.