K Mohan, MD, Ebro Armaturen India
Kiran Diwanji, President at Qu Con Inc.
The global economy downturn and more multinational players’ foray into Indian shores make the PVC industry happening as well as competitive too
The Indian market for pumps, valves and compressors (PVC) has been traditionally dominated by international companies while a few locally triumphed companies like Ebro Armaturen India Pvt. Ltd. and Qu-Con Inc. are creating waves in the industry. These PVC manufacturers are niche focused and cater to specific demand from end users. Let’s find out what are their views on the current industry, opportunities and challenges.
The current industry scenarioThe current industry looks like the ideal ground for survival for the fittest. Most of the industries are facing liquidity crunch and new projects are on hold. To cap it off, more and more multinational companies are setting up operations in India, making intense competition. In general, the PVC industry is facing a challenging time.
“Despite the fact that valves and pumps are projected as ‘must’ product for almost all industry, the demand is in decline,” Kiran Diwanji, President, Qu-Con Inc., expressed his concerns. “Even end users prefer repairing or upgrading existing valves and pumps, rather than going for purchase of new equipment.”
He further added, “Valves and pumps, however, with special feature like zero leakage or higher efficiency will still have good demand as these features save money.”On the contrary, K Mohan, Managing Director, Ebro Armaturen India Pvt. Ltd., was more optimistic. He said, “Indian process industry is poised for steep growth in coming years. There will be exponential demand for pumps, valves and accessories. The industry also needs to produce quality products with a view to maintain clean environment.”
Growth drivers for the industryUntil the global economy comes back to the high-growth trajectory, the growth of the industry seems in distance.
“The growth in demand is related to overall economic growth of the country which in turn is quite dependant on political stability and the government policies,” echoed Mr. Mohan.
The global economy downturn surely affecting the demand and it looks it’ll continue to be down for some time.
The demand and supply of PVCIt seems the industry is divided with the idea of demand and supply ratio.
While speaking on the demand-supply issue, Mr. Mohan remarked, “We feel that there is enough demand, but there are not too many quality manufacturers who can supply the valves and pumps at par with European companies. With the result, still we are looking at cost-effective options thereby diluting the end demand on product performance.”
Whereas Mr. Diwanji said, “Demand would be in decline, but the supply would be plentiful. The manufacture would be slowed down due to diminutive market.”
Technology innovationsNo significant new technology has come up over the last few years. Of course, multinationals are investing enough to target the burgeoning Indian markets, but the technology innovations will take some time to be implemented.
However, it seems it’s not that true for valves. Mr. Mohan emphasised, “We are producing specialised valves for handling powders and abrasive fluids as well as developed actuators which consume less energy thus making them environment friendly.”
In general, the PVC industry is facing a challenging time. However, India is blessed with technically skilled and less expensive manpower. As the global economic slowdown is forcing global companies to look at India as a viable destination for business, Indian PVC industry seems following the right path.
K Mohan, MD, Ebro Armaturen India