Top 6 Solar Pump Stocks in India

In recent years, the demand for pumps has increased across all market segments.

The government's focus on irrigation, sanitation, drinking water supply, and urban housing projects are the key factors driving the demand for pumps.

This once ignored segment is now hot in the stock market.

In this editorial, we will look at the solar pump stocks as India's solar industry is set to explode and will provide a long runway for growth.

Indian Pump Industry

As per industry estimates, the Indian pump market by revenue is expected to grow at a CAGR of over 7% during the period 2021-2026. The entire industry is currently valued at US$ 930 million (m) i.e. Rs 77.3 billion (bn).

The following factors are likely to contribute to the growth of the India pump market - the demand for energy-efficient pumps, the demand for solar pumps, increased export of centrifugal pumps, and the growth in the agricultural sector.

Out of these, the demand for solar pumps is particularly exciting as the solar boom in India will last decades and will offer huge opportunities for growth.

The government has launched the PM KUSUM scheme to add solar capacity of 30,800 megawatt (MW) by 2026. For this it plans to install small solar power plants, 2 million standalone solar powered agriculture pumps, and 1.5 million grid connected agriculture pumps.

Here are some of the top players in this industry.

#1 Shakti Pumps

Shakti Pumps is India's largest manufacturer and exporter of solar pumps.

It's the market leader in the solar pump market with a market share of around 30% in India. It's one of the primary beneficiaries of the PM KUSUM scheme (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan Yojana).

The company is primarily engaged in manufacturing pumps, motors, and controllers. It has an extensive product portfolio of over 1,200 stock-keeping units (SKU) with a wide range of applications in several industries, including agriculture, building services, power, oil and gas, and mining.

Shakti Pumps has two manufacturing units producing over 500,000 pumps per annum. The company is also the only company with in-house manufacturing of an entire range of products, such as variable frequency drives, motors, and inventors for solar pump installation.

The company is a channel partner for the Ministry of New & Renewable Energy (MNRE). It offers a range of solar pumps between 1 hp to 100 hp. The company claims its pumps are simple, easy to operate, and offer 40% more discharge than ordinary pumps.

For more details, see the Shakti Pumps company fact sheet and quarterly results.

#2 Kirloskar Brothers Ltd

Kirloskar Brothers Ltd (KBL), established in 1888 and incorporated in 1920, is the mother company of the Kirloskar group.

The company's expertise is in the engineering and manufacturing of fluid management systems. It provides complete fluid management solutions for large infrastructure projects in the areas of water supply, power plants, irrigation, building & construction, oil & gas industry, and marine & defence.

It's a well-established pump manufacturing company in India producing over 75 types of pumps. The company manufactures industrial, agriculture and domestic pumps, valves, and hydro-turbines.

KBL is the largest manufacturer, producer, and exporter of centrifugal pumps from India. It's also the manufacturer of the largest pumps by size and horsepower in India.

The company has the capability and expertise to produce any type of pump across multiple end-user industries. With 14 manufacturing facilities, out of which 5 are based outside India, KBL is well-equipped to meet the growing demands of local and global clients.

The company has made an entry into solar pumps with offerings from 2 hp to 50 hp motor rating categories of pumps catering to the needs of various kinds of customers.

The applications of these pumps include lift irrigation, drinking water supply, cooling towers, pressure boosting, air conditioning, etc.

For more details, see the Kirloskar Brothers company fact sheet and quarterly results.

#3 KSB Ltd

KSB is among the most reliable pump manufacturers in India. It's leading manufacturer of pumps, valves, systems, and control valves in the country.

It has an extensive product portfolio of pumps, including standard industrial end suction, high-pressure multistage pumps, submersible motor pumps, monoblock pumps, and nuclear pumps. KSB company mainly serves the water, energy, agriculture, construction, oil and gas, and process industries.

KSB has a strong presence in India with 7 manufacturing facilities, 4 zonal offices, 14 branch offices, 6 service stations, 350+ authorised service centres, 22 godowns, and 1,100+ authorised dealers.

The company has multiple products in solar pumps under categories like centrifugal pumps, vertical turbine pumps, and water-cooled submersible motors.

The company has moderate capex plans with a focus on expanding its product portfolio across petrochemical, water handling, and building services segments.

The company is also focussing on developing new hydraulics and sizes to cater to the market needs.

For more details, see the KSB company fact sheet and quarterly results.

#4 WPIL

WPIL is engaged in the business of designing, developing, manufacturing, erecting, commissioning, and servicing of pumps and pumping systems. It's one of the leading pump and pumping systems company in India.

It has 12 manufacturing locations covering the entire process of pump manufacture from casting, fabrication, machining, assembly, and testing. This has allowed the company to deliver value to customers by enhancing efficiencies at every step.

The management of WPIL has global ambitions. the company has expanded its operations outside India. It has manufacturing operations in UK, Italy, France, Switzerland, South Africa, Zambia, Australia, and Thailand through various group companies.

WPIL is also investing heavily in research and development (R&D) to develop new products and new techniques to execute its turnkey projects.

The company's water pumps span the entire value chain from centrifugal pumps, vertical pumps, and submersible pumps. The company is likely to be among the beneficiaries of government schemes like Jal Jeevan Mission and Atal URBAN Renewal Mission.

For more details, see the WPIL. company fact sheet and quarterly results.

#5 Latteys Industries

Latteys Industries is engaged in the business of manufacturing reliable and energy efficient submersible pumps.

The company describes itself as a pioneer in submersible pumps in India. It has developed about 200 submersible pumps. It also makes regenerative self-priming pumpsets, electrical monoset pumps, and openwell submersible pumpsets.

Founded in 2004, it has a portfolio of over 2,000 pumps that are used for domestic, agricultural, and industrial purposes. The company currently has an installed production capacity of approximately 120,000 pumps per annum.

The company has forayed into the solar pump market with 4 new submersible pumpsets. It has pitched these products as an answer to the persistent energy challenges faced by farmers.

Latteys claims that its innovative pumpsets offer a sustainable and cost-effective solution to the irrigation needs of farmers and can deliver consistent performance amid challenging conditions.

For more details, see the Latteys Industries company fact sheet and quarterly results.

#6 Aqua Pumps

Aqua Pumps, part of the Aqua group, was founded in 1956 by entrepreneur R Ramaswamy. It's an experienced and well-established firm operating the brands Texmo and Aquatex.

The company has a wide product range under its brands as well as a network of 23 branches and more than 1,400 exclusive dealers nationwide.

Aqua Pumps produces various types of pumps including submersibles, monoblocks, hydropneumatics, self-priming, jet pumps, and solar pumps.

The company exports to the Middle East, North Africa, Asia, and South America under the brand 'atx'.

The company's solar portfolio comprises of pumps in three categories - solar submersible pumpsets, solar openwell pumpsets, and solar surface monoblocks. The company's solar pumps are produced in the 0.5-30 hp range.

The company is unlisted.

Conclusion

Although the sector is witnessing high growth, it is important to treat these stocks with the same amount of caution as other stocks.

You should track pump stocks closely and keep a watch on their developments. Perform your due diligence on these stocks just as you would on stocks of any other hot theme in the market.

Happy investing.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here.