Jyoti, DMW to make water pumps

Leading engineering company Jyoti Ltd on Monday announced an exclusive collaboration agreement with Japan's DMW Corporation for manufacturing cooling water (CW) pumps for large irrigation and power projects at the Vadodara plant.

Jyoti Ltd, which has projected a turnover of Rs 500 crore this fiscal, expects to double it in the next five years, including Rs 300 crore from CW pumps for large projects.

Competing with the Kirloskar's, Jyoti Ltd will now be manufacturing a range of CW pumps for irrigation projects as well as large thermal and nuclear power plants with capacities of 800 and 1,000 MW, for which proper technology did not exist in India till now, Mr Rahul Amin, Chairman and Managing Director, said here.

At present, most suppliers can provide CW pumps only for 100 MW projects, he said.

He said India is now expected to produce up to 50,000 MW of nuclear power in the next few years as 70 per cent of the country's power needs would be met through thermal and nuclear resources.

“DMW would give India technology, technical know-how and parts through Jyoti Ltd and also explore the market in the neighbouring countries,” said Mr Amin in the presence of Mr Tadahiro Tsuchiya, Senior Executive Director, DMW Corp.

For large projects, Jyoti Ltd is providing CW pumps even to L&T, which has a joint venture with Mitsubishi to manufacture pumps for power projects up to 660 MW. India would require more than 1,000 CW pumps in the next five years for large projects.

“We also see our market in the UMPPs.”

Mr Amin pointed out that while India could obtain nuclear power plants from the US, France and Russia, it would depend on domestic CW pump suppliers for its needs in this sector as well.

In nuclear power sector, Jyoti Ltd expects to install nearly 100 CW pumps in the next five-six years which would translate into Rs 200 crore revenues, he told Business Line .

Jyoti Ltd expects to increase its current market share in CW pump business from 30 per cent to 50 per cent . India is projected to have Rs 1,000-crore market in this segment in the next five years. However, the company's focus would continue to be on thermal power projects.

Mr Amin clarified that no fresh investments are envisaged at this stage in the wake of the collaboration as Jyoti Ltd can manufacture the products at its existing facility at Vadodara where the 65-year-old company has already invested Rs 100 crore.

Profit-sharing between Jyoti Ltd and DMW Corp, post their agreement, would be decided on “case-to-case” basis, he added.

DMW, a 101-year-old company, currently gets 5 per cent of its $210 million turnover from India, which is expected to increase to 15 per cent in the next five years.

So far, it has supplied 360 circulating water pumps for thermal power plants and 29 pumps for nuclear plants up to the capacity of 1,000 MW.

The agreement will enable Jyoti Ltd, too, to supply CW solutions for thermal and nuclear plants up to 1,000 MW.

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