The Hindu Business Line : `Asian demand will propel pumps growth'

The growth of the industry will also be driven by the demand for sophisticated `smart' pumps as the world grapples with the need to conserve natural resources, according to Mr C.R. Shanmughasundaram, President, Southern India Engineering Manufacturers' Association (SIEMA), Coimbatore.

Speaking at the AGM of SIEMA here, he said according to a recent study by a European consultant Mcllvaine Company, the World market for pumps would grow from below $30 billion this year to $49 billion by 2016. While the world GDP might grow at 4 per cent per year during the coming decade, the pump market would grow by 5 per cent a year.

These projections were based on growth forecast on new energy sources, urbanisation in Asia and the investment in water infrastructure, industries such as steel and chemicals.

He said the growth of the pump industry in future would be powered by the increasing demand for uncontaminated water whose supply was shrinking. The Asian continent had lesser per capita water availability than other regions and he expected that nearly 50 per cent of the investment in pumps for water related applications would come from Asia.

Mr Shanmughasundaram said with the Western pump industry maturing, technologies like `intelligent pumping systems' are likely to propel growth. The demand for such `smart' pumps was increasing in many user segments such as water and wastewater treatment, building automation, food and beverages industry. End users have begun taking a long- term view of the cost of pump sets and their running cost. As the cost of pumps was normally less than 20-40 per cent of their total life costs, the users were demanding more energy efficient pumps, though such pumps would be costlier, in view of the savings.

The newly-elected SIEMA President expected the demand for submersible and seal-less pumps to grow. While a small number of large players controlled a major share of the pump market globally, a large number of SMEs were left to fight for the rest of the market demand leading to intense competition among themselves. Though industrial growth has been at 8-10 per cent annually for the past two years, the pump industry here had to grapple with problems such as rising raw material cost and lower demand due to good monsoon.

MoU with NSIC

He said SIEMA was planning to sign a MoU with National Small Industries Corporation (NSIC). Another MoU with the Industrial Development Agency (IDA) of Sir Lanka was on the anvil that would help engineering industries of both countries.

Mr C.R. Swaminathan, the outgoing President, said that with many software companies planning to come to Coimbatore, the job opportunities and the economy of the region would improve.

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