Everest Group targets 300% growth in FY 12-13

December 17, 2012 11:44 am

Everest Group targets 300% growth in FY 12-13
Everest Group, one of the largest producers of roots blowers in South-East Asia, is a fully integrated and diversified company involved in the engineering, evaluation, designing, manufacturing, testing, execution, and service of pressure/vacuum systems. In a talk with OEM Update; Amit Kapur, Director, Everest Group, sheds light on various aspects of the pumps, valves and compressors market
What’s your view on the current scenario of Indian PVC market?Pumps, valves and compressors (PVC) are vital elements of an enormous range of fluid-handling applications which range from small-household pumps to immense units utilised in water, chemical and energy industries.
According to industry estimation, India produces about 4.5 million pumps. There are around 800 large, medium and small units producing pumps for various sectors, ranging from agriculture to nuclear power generation. Indian pump manufacturers are able to meet most of the domestic market demand. India exported pumpsets worth ` 390 crore in 2008-2009, ` 342 crore in 2009-2010 and ` 411 crore in 2010-2011.
What about the global market?The global scenario is:• Exciting and growing opportunities in developed countries of Western Europe for automation solutions expected to boost European revenues.• Emerging economies in the Asia-Pacific regions, especially China and India, require targeted solutions on specific segments in these regions.• Middle-East and Africa provide growing opportunities in the automation field which are expected to boost the global revenues.Supernormal growth expected from the two fastest growing economies of China and India.
What are the growth drivers for the industry?As per the survey by Frost & Sullivan, a stable economy with continuing investments in core sectors is expected to fuel the growth of the PVC market in India which is expected to grow at a much faster pace than the rest of the world.
The growing economy, increasing middle class (prosperity and spending), rapid urbanisation, and demanding infrastructure needs are the key factors for the growth. Rising awareness levels about long-term cost savings from adoption of energy efficient equipment is expected to further spur the demand. Banking on such growth factors, the overall market for PVC is expected to grow at a compound annual growth rate of 15-17 per cent over the period of FY 2011-2015.
The major driving factor for the industry today is the “need to change” and bring in cleaner and better ways of production.
What do you mean by cleaner and better ways of production?Rapid industrialisation and ever increasing population are putting a lot of negative impacts on our environment. Our future generation would suffer if it continues in the same pace. Strict environmental norms, pollution control, increase in scarcity of water, and need for decreasing energy consumption are major challenges of the day. These are what have forced the big industries to rethink on conventional methods of production and introduce newer and environment friendly technologies with lower cost of manufacturing. All these translate into opportunities for Everest since we support them in terms of bringing continuously upgraded technologies and giving them the highest-quality products at best possible prices. Everest Group has strongly realised and felt the shift of the industry towards green solutions.
What are the major challenges the PVC market is facing today?Probably the most important issue for any industry today is better resource utilisation, reduction in process time, higher yields, and better product quality. The major concern is low-energy consumption per unit of product and this objective is a major decision factor which favours the chance of Everest’s product offerings over any other possible alternative. Innovation is the essence of the world today. Resources and market advantages don’t matter much. Intellect and innovation do. There is nothing more powerful than the idea whose time has come.
Even the competition has increased in the sector, though the competitors are the same. There are a lot of consolidations happening. The manufacturing units need to be prepared and should accept the rapid changes in technology, economy, market, climate, legislation, and customer expectations.
Brief us about the demand and supply status of PVC.Globally, the majority of demand for pumps, valves and compressors is from their installation in varied end-user industries of oil and gas, power generation, and heavy industries like cement and metal. The Indian market for these equipment also thrives on a similar global pattern, with demand primarily originating from the country’s wide-spread oil and gas exploration and production activities, refineries, and other core sectors. Commensurate to the vastness of the Indian end-user and the range of applications involved in each segment, the demand for pumps, valves and compressors is also high. Large-scale installations are witnessed every year and the demand continues to pick up at a healthy double-digit growth rate.
What are the innovations happening in the technology for pumps, valves and compressors?Today India has become a reliable, technically competent, competitive and enterprising outsourcing option for many western pump manufacturers who will continue to buy more low-cost pump parts or sell ‘private-label’ complimentary pumps of other manufacturers instead manufacturing their own. The growth story has emerged through technical collaborations and joint ventures that Indian companies have had with multinational majors.
What’s your company’s growth ratio?Everest Group has maintained a continuous year-on-year growth of 30 per cent for the last five years. For the year FY 2012-13, we have revalued and revised our targets, pushing them around at much faster pace focussing 300 per cent growth by end of third year.
Do you have any expansion plan?Yes, we have. India is a part of boundary less world with unhindered flow of capital, technology, products, and services. It is for these reasons we have great plans for expansion especially with an objective to cover practically all industrial process and offer total solutions for energy conservation, improvement in product quality and higher yields.
We have planned of setting up the most modern manufacturing facility with in-house DSIR registered R&D facility which will not only role out good reliable products but also assist in meeting the targeted expansion program. The product expansion would accordingly take place to meet the individual demand and needs.
Where do you wish to rank Everest?The group stands today as one of the upcoming names in the vacuum industry. We aim to build the most cost-effective development firm, through the blending of our world-class ‘best practices’ with local experience and knowledge.

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