About Oswal Pumps Limited

Business Overview

Oswal Pumps is the fastest-growing vertically integrated solar pump manufacturer in India by revenue growth over the last three fiscals, with a CAGR of 45.07% between FY22 and FY24. The company manufactures solar-powered and grid-connected submersible and monoblock pumps, electric motors (including induction and submersible types), and solar modules, all marketed under the ‘Oswal’ brand.

With 22+ years of experience in pump engineering, design, manufacturing, and testing, Oswal Pumps serves diverse sectors:

• Agriculture – for irrigation

• Residential – for gardens, water extraction, and household uses

• Commercial – malls, offices, hotels

• Industrial – used in boilers, water treatment, machinery, and cooling systems

Operations began in 2003 with low-speed monoblock pumps, later expanding to grid-connected variants and electric motors. The company entered the solar-powered agricultural pumps segment in 2019, aligning with the Government of India’s PM Kusum Scheme (₹344 billion initiative for solar agriculture pumps, launched in March 2019). It supplies pumps to Turnkey Solar Pumping System providers such as Tata Power Solar Systems and vendors under schemes like Mukhyamantri Saur Krushi Pump Yojana (Maharashtra).

Since 2021, Oswal Pumps has been offering Turnkey Solar Pumping Systems—including pumps, modules, mounting structures, controllers, and installation services—either directly or via third-party bidders. As of December 31, 2024, it has executed 38,132 orders directly under the PM Kusum Scheme across Haryana, Rajasthan, Uttar Pradesh, and Maharashtra.

In FY23 and FY24, the company became one of the largest suppliers of solar-powered agricultural pumps under PM Kusum, contributing through:

• Direct delivery to farmers

• Supply to participating players

• Component-only supply (excluding installation)

Recognized as one of the few fully integrated providers in India (Source: 1Lattice Report), Oswal Pumps manufactures solar modules (since January 2024 through Oswal Solar Structure Pvt. Ltd.) and benefits from Walso Solar Solution Pvt. Ltd., which produces mounting structures and essential BOS components.

Of the estimated 0.61 million solar pumps installed under PM Kusum as of December 31, 2024, approximately 0.23 million (38.04%) were supplied—directly or indirectly—by Oswal Pumps. Key differentiators include end-to-end pump manufacturing, in-house component production, scrap recycling (e.g., for impellers, valves, sleeves), and smart solar pump controllers with features like remote access, short circuit protection, dry run prevention, and anti-theft alerts.

The manufacturing facility in Karnal, Haryana, spans 41,076 sq. meters, ranking among India's largest single-site pump plants. The distribution network has grown from 473 in March 2022 to 925 in December 2024, strengthening retail reach and brand presence nationwide. As on December 31, 2024, the company had 2,200 permanent employees. The Bankers to the company are State Bank of India and Union Bank of India.

Industry Analysis

Indian Pumps Market: Industry Landscape and Outlook

The Indian pumps market, valued at approximately INR 380.5 billion in FY25, is projected to expand at a CAGR of 9.2%, reaching around INR 591.9 billion by FY30. This growth is fueled by rising demand across agriculture, industrial, and infrastructure sectors. Pumps are critical to enabling operations in water supply, irrigation, and manufacturing, thus playing an integral role in India’s economic development.

Government-led programs like Jal Jeevan Mission and Swachh Bharat Mission are significantly boosting pump demand by enhancing water infrastructure and sanitation systems across urban and rural areas.

Despite India holding only ~5% of the global pumps market, the country presents a large growth potential driven by:

• Agricultural advancements, including a push for solar pumps

• Industrial expansion and urbanization

• Greater need for customized, built-to-suit pump systems

Segment-Wise Analysis

Agricultural Pumps

• Comprising ~67% of the Indian pumps market in FY25, the agricultural segment is central to India's irrigation and water management needs.

• India's share in the global agricultural pumps market stands at ~18%.

• Growth in this segment is supported by:

  • Government incentives for solar pump adoption

  • Increasing demand for reliable irrigation solutions

  • Rising focus on energy-efficient and cost-effective farming

• Leading players: KSB, Oswal Pumps, Shakti Pumps

• Expected CAGR: 8.4% (FY25–FY30)

• Market share by FY30: ~65%

Industrial Pumps

• Industrial pumps formed 27% of the Indian pump market in FY25 and are projected to grow at 10.5% CAGR, reaching 30% market share by FY30.

• India represents ~6.5% of the global industrial pumps market.

• Major end-use industries: Water treatment, oil & gas, power generation, automotive, chemicals, pharmaceuticals, food processing

• Applications include fluid transport, cooling, lubrication, and water circulation

• Key players: Kirloskar Brothers Ltd (KBL), Flowserve, WPIL, Lubi Pumps, CRI Pumps

Residential Pumps

• This segment accounted for ~5% of the Indian pump industry in FY25, with anticipated growth at 13.6% CAGR, reaching ~6% by FY30.

• India represents ~4% of the global residential pumps market.

• Growth drivers:

  • Surge in urban housing and construction

  • Need for domestic water supply and pressure systems

• Dominated by local manufacturers, with KBL and CRI Pumps among the top players.

Submersible Pumps Market

• Valued at ~INR 200.7 billion in FY25, the Indian submersible pumps market is expected to grow at a 10.5% CAGR, reaching INR 330.4 billion by FY30.

• Major use cases: Borewells, household water supply, mining, and water treatment

• Notably growing in Tier-2 and Tier-3 cities

• India holds ~5% of the global submersible pumps market

• Grid-connected submersible pumps valued at US$ 0.47 billion in FY25, growing at 8.3% CAGR (FY25–30)

Electric and Induction Motors: A Crucial Enabler

Electric motors, essential in powering pumps, are seeing strong demand:

• Global electric motor market projected to grow at 7% CAGR, reaching US$ 219.4 billion by CY29

• Indian electric motor market: US$ 4.1 billion in FY25, projected to reach US$ 8 billion by FY30, growing at 14.3% CAGR

• Induction motors, widely used in pumps, are valued at ~US$ 0.8 billion in FY25, with expected growth at 13.8% CAGR, reaching US$ 1.5 billion by FY30

Indian Solar Pump Market: A Sustainable Growth Engine

• The Indian solar pump market surged from INR 1.7 billion in FY19 to INR 164.5 billion in FY25, and is expected to reach INR 271.1 billion by FY30, growing at 11.0% CAGR.

• Solar pumps are increasingly preferred due to:

  • Cost savings on diesel/electricity

  • Low maintenance

  • Government subsidies and schemes

• Expected to account for ~57% of the total pumps market by FY30

PM-KUSUM Scheme: Accelerating Solar Pump Adoption

Launched in March 2019, the PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) scheme allocates INR 344 billion (US$ 4.1B) to promote solar energy use in agriculture by:

• Installing 1.4 million standalone solar pumps

• Solarizing 3.5 million grid-connected pumps

• Offering 30% central subsidy (plus state subsidy) for pump costs, with enhanced subsidies (up to 80%) in special states like J&K, Himachal, NE states, and islands

Conclusion

The Indian pumps industry is on a robust growth trajectory driven by strong demand across agriculture, infrastructure, and industrial sectors. The integration of solar and energy-efficient technologies, along with supportive government policies, is accelerating the pace of innovation and adoption. With India's limited share in the global market, there remains significant room for domestic players to scale operations and cater to international demand.

Business Strengths

1. Leading Position in Solar Pump Market
One of the largest suppliers of solar-powered agricultural pumps under the PM Kusum Scheme, with operations expanding from low-speed monoblock pumps in 2003 to a full range of solar and grid-connected pumps. Supplies include turnkey systems and components to major players such as Tata Power Solar and empanelled vendors under state schemes like Mukhyamantri Saur Krushi Pump Yojana.

2. Rapid Revenue Growth
Ranked as the fastest-growing vertically integrated solar pump manufacturer in India, achieving a CAGR of 45.07% from FY22 to FY24 (Source: 1Lattice Report).

3. Vertically Integrated Operations
Manufactures a wide range of in-house components including solar modules and pump parts, supported by associate Walso Solar Solution Pvt. Ltd. for mounting structures and BOS. This integration enables cost optimization, product development, and margin improvement, with an EBITDA margin rising from 10.69% in FY22 to 30.12% in FY24.

4. Strong Engineering & Product Innovation
Backed by a dedicated R&D team of 20 professionals as of December 2024, using tools like AutoCAD, SolidWorks, and advanced CFD & seismic simulation software. Innovations include cost-efficient designs, such as sheet-metal bowl sleeves and thinner investment-cast non-return valves.

5. Diversified Product Portfolio
Offers a comprehensive range of solar-powered and grid-connected submersible and monoblock pumps, electric motors, and solar modules under the ‘Oswal’ brand. The wide product mix serves agricultural, residential, and industrial customers, reducing reliance on any single segment.

6. Pan-India Presence in Key Agricultural States
Strong market base in Haryana, with expanding footprint across Maharashtra, Uttar Pradesh, Rajasthan, Chhattisgarh, and Punjab, helping mitigate regional concentration risk and broaden customer reach.

7. Extensive Distribution Network
A well-established network of 925 distributors across India as of December 2024. Distributor base has significantly expanded over recent years, enabling broad market penetration and a competitive edge in an industry where distribution is a major barrier to entry.

8. Experienced Leadership Team
Guided by Vivek Gupta, Promoter and Managing Director, with over 18 years of industry experience, and founded by Padam Sain Gupta, who played a critical role in scaling the company since its inception in 2003 and its transition to a public company in 2006.

Business Strategies

1. Strengthen Backward Integration and Automation
Focus on increasing in-house manufacturing of pump components, automating production processes, and enhancing technological capabilities through strategic acquisitions to improve operational efficiency and margins.

2. Expand Participation in Government Schemes
Leverage manufacturing capabilities to capitalize on growth under the PM Kusum Scheme and cater to the rising adoption of solar irrigation solutions by farmers. As of March 31, 2025, only 62.90% of the 1.22 million sanctioned systems have been installed, indicating significant future potential.

3. Enhance Solar Module Capacity and Integration
Plans underway to increase solar module manufacturing capacity and undertake backward integration to optimize cost structures and support demand for Turnkey Solar Pumping Systems.

4. Diversify into Industrial Pumps and Electric Motors
Introduction of new industrial pump and electric motor product lines to tap into expanding markets. The Indian industrial pump market is expected to grow at 11.8% CAGR to ₹177.6 billion by FY2030, while the electric motor market in India is projected to reach USD 8.0 billion by FY2030, growing at 14.3% CAGR (Source: 1Lattice Report).

5. Expand Domestic Presence and Grow Exports
Targeted expansion in underpenetrated states such as Chhattisgarh, Karnataka, Assam, Kerala, Andhra Pradesh, Telangana, Tamil Nadu, and Gujarat. Distributor network has increased from 473 in March 2022 to 925 by December 2024, with plans to further strengthen sales and market reach across India and international markets.

Business Risk Factors and Concerns

1. Heavy Dependency on the PM Kusum Scheme
A large portion of revenue is derived from Turnkey Solar Pumping Systems awarded under the PM Kusum Scheme (₹7,732.07 million in 9M FY2025, accounting for 78.50% of operational revenue). Discontinuation or reduced funding of the scheme or unsuccessful bidding may adversely impact revenues.

2. Revenue Linked to Agricultural Sector Performance
Revenue from the agricultural sector contributed over 96% in 9M FY2025. Fluctuations in agricultural output, irrigation demand, or policy changes can significantly affect business performance.

3. Geographic Revenue Concentration Risk
Significant sales concentration in Haryana, Maharashtra, Uttar Pradesh, and Rajasthan poses a risk. Adverse events in these states could impact financial stability and operations.

4. Manufacturing Location Risk
Both manufacturing units are located in Karnal, Haryana. Any natural calamities, civil unrest, or regional disruptions could impact supply chains and operations due to geographic concentration.

5. Performance Risk of Subsidiaries
Oswal Solar and Oswal Green have incurred past losses. Oswal Solar, though operational since Jan 2024, reported a loss of ₹0.13 million in FY2023 due to early-stage expenses. Continued underperformance may affect consolidated results.

6. Variability in Installation vs. Awarded Orders
The number of installed Turnkey Solar Pumping Systems may fall short of awarded orders due to lack of beneficiary interest or project delays/modifications. Such discrepancies could affect expected revenue realization.

Oswal Pumps faces significant exposure to government policies, agricultural sector dependency, regional concentration, and uncertainties related to government schemes. Operational and financial risks also arise from subsidiary performance and beneficiary-based contract execution under the PM Kusum Scheme.