Rajkot-based Falcon Pumps to foray into industrial pumps

Rajkot-based Falcon Pumps Private Limited, a leading player in agriculture pumps manufacturing, is all set to foray into manufacturing industrial pumps within next two years with an initial investment of Rs 200 crore.

“We have acquired 30 acres of land near Shapar industrial area where we want to start the production of industrial pumps soon. In the initial stages we will invest about Rs 25 crore in this project. The total project needs about Rs 50 crore investment and we plan to invest in it gradually. Most of the funds will managed through internal sources and banks,” said Dhirajlal Suvagiya, chairman and managing director of Falcon Pumps.

 

Talking about the company's future plans, Suvagiya said, “Last year our turnover was Rs 160 crore and for the year 2011-12 we are aiming to reach about Rs 200-225 crore. We want to achieve a turnover of Rs 1000 crore by 2016 and be one of India’s leading pump manufacturing company in all segments. Right now we are leaders in terms of technology in the pump industry in the agriculture segment and now to we will be looking to focus on manufacturing industrial pumps.”

India has about Rs 12000 crore market of agriculture pumps and Falcon Pumps currently has a market share of four per cent in it.

By starting industrial pump production by 2013, the company is aiming to get a 15 to 17 percent market share in the overall pump industry. The company has also invested about Rs 50 crore in submersible pipes and cable manufacturing.

“We are currently present in 16 states of India. To reach our yearly targets, we are expanding our network across India and are also focusing on exports. Last year the company had exported about Rs 10-12 crore worth of pumps in the neighbouring countries of India and to African countries. For the current year we are targeting to export about Rs 15-17 crore," said Jagdish Patel, Managing Director, Falcon Pumps.

While the pump industry is divided in to agriculture, domestic and industrial segments, the market of agriculture pumps is very huge.

On the other hand, the domestic pump industry size is about Rs 4000-5000 crore while industrial pump market size is more than Rs 6000 crore.