Oswal Pumps IPO: Leading the Charge in Solar-Powered Pumping Systems

13 Jun 2025 , 09:28 AM

Oswal Pumps is a leading manufacturer of pumps. Started 22 years ago, it is a manufacturer of both conventional and solar pumps. It caters to the diverse needs of various end markets – Industrial, Residential and Agricultural. Its capabilities encompass the entire value chain – engineering, product design, manufacturing, and testing

The company’s product range comprises solar submersible pumps, solar monoblock pumps, grid-connected submersible, grid connected monoblock pumps, induction motors, and submersible motors. It has a strong presence in the fast growing solar agricultural pumps market, with a focus on providing sustainable solutions for agricultural needs. The company has also benefited from the government’s irrigation initiatives. It has booked orders for 38,132 Turnkey Solar pumping Systems under PM Kusum Scheme on direct basis and also imported and supplied solar pumps to players intending to participate in the scheme.

It has two operational manufacturing units located at Karnal, Haryana, with land area of 52,078 square meters. The company has a wide distribution network that has 925 distributors in India and exports products to 22 countries.

Offer Details

The IPO of Oswal Pumps Limited comprises a fresh issue and an offer for sale. The total size of the offer is INR 13,874 m.

The new issue is up to INR 8,900 m of 145 m shares

The offer for sale comprises of 81 m shares aggregating to INR 4,973 m. Offer for sales is being done by the promoter, Vivek Gupta.

Price Band & BRLM

Price bank of the IPO is INR 584 to INR 614 per share.

The BRLMs for the issue are:

• IIFL Capital Services Limited
• Axis Capital Limited
• CLSA India Private Limited
• JM Financial Limited
• Nuvamba Wealth Management Limited

Objects of the Issue:

The net proceeds from the IPO will be used for repayment of borrowings, capital expenditures and general corporate purposes.

De-leveraging / Debt Repayment

The Company intends to utilise INR 2,800 m of the Net Proceeds towards repayment/prepayment, in full or part, of certain outstanding borrowings. The outstanding borrowings were INR 3,085.67 million. In addition, INR 310 m is expected to be utilised to repay the debt of a wholly owned subsidiary, Oswal Solar.

Capital Expenditures

INR 898.60 million from the Net Proceeds are proposed to be utilised to acquire certain new plant and machinery for automation, modernization and/or replacement, which will increase our current production capacity. Further, a wholly owned subsidiary, Oswal Solar intends to establish additional manufacturing facilities at Karnal, Haryana at a cost of INR 2,727.58 m.

History and Origins

The Indian pump industry traces its origins to the 1960s when the first pump manufacturing units were established. The industry has witnessed a substantial transformation over the course of time, owing to the growing application of pumps across the agricultural, industrial and construction sectors. The Indian pump industry provides a substantial amount of employment contributes non trivially to the GDP.

Evolution of the Industry

The technology behind manufacturing pumps dates back to the invention of the electric motor. In the beginning, Indian pump manufacturing industry was dominated by small scale players who were catering to their local market. Post liberalization, there was a rapid influx of technology and evolution. This led to a significant improvement in  the quality and range of pumps produced in India.

Key markets

The Indian pump industry serves a diverse clientele from different industries. Major market sections are as follows:

• Agriculture: For the purpose of irrigation, drainage and other applications, pumps are widely utilised in agriculture.
• Industrial: Pumps are applied in a range of industrial processes including water treatment, chemical processing, and and power generation.
• Construction: Pumps are used in construction tasks such as in the development of building, road construction and mining.
• Residential: These pumps are primarily used in residential applications as sewage pumps or water supply pumps.

 

Key Trends and Drivers

The Indian pump industry is influenced by a number of trends and drivers such as:

• Rising Demand: The growing demand for pumps in agriculture, industry and construction sectors is boosting demand.
• Government Efforts: Government schemes like ‘Make in India” and ‘Atmanirbhar Bharat” program have also contributed to the growth of the pump industry.
• Technological Innovations: Technological innovation has resulted in more efficient and long lasting pumps.
• Focus Moving to Sustainable: The market is moving towards more sustainable and environment friendly pumps like solar pumps.

 

Market Size And Growth:

The Indian pump industry was estimated at INR 380.5 billion market in FY25. The industry is anticipated to expand at a CAGR of 9.2% during FY25-30 and is estimated to reach INR 591.9 billion by FY30. The agricultural pumps industry is the biggest segment and contributed around 67% of the total Indian pump industry revenue in FY25 and is anticipated to grow at a CAGR of 8.4% by FY30.

Industrial pumps are another large segment, comprising 27% of the Indian pump industry in FY25 and projected to grow at a CAGR of 10.5% by FY30. The residential pumps is the smallest among the segments and is representing 5% of the Indian pump industry in FY25 and is estimated to grow at a CAGR of 13.6% until FY30.

Key Factors Driving Growth

The growth of the Indian pump industry is driven by several key factors:

• Government Projects: Government’s schemes like Jal Jeevan Mission and Swachh Bharat Mission, are generating demand for water supply infrastructure and sanitation solutions, which inturn is causing demand for pumps.
• Growing Industrialization: Expansion of oil & gas, power generation, and chemicals, is leading to the increased demand for pumps for various end uses.
• Rising urbanisation: Increasing demand for residential pumps and water management solutions from growing urban population.
• Technological innovations: Improvements in pump technology is increasing the efficiency and reducing cost, making pumps more favorable to the customers.
• Energy efficiency: Growing awareness about energy efficient pumps and water management systems has led to the demand for energy efficient products.

 

A Summary of Key Government Initiatives In Agriculture

• Agriculture Infrastructure Fund (AFI): Aims to provide medium to long-term debt financing facility till FY26 through 3% interest subvention and credit guarantee support on loans for the creation of post-harvest management infrastructure and community farming assets.
• Rashtriya Krishi Vikas Yojana (RKVY): Focuses on developing pre and post-harvest infrastructure in agriculture, providing quality inputs and market facilities to farmers. It allows states flexibility to address local farmers’ needs, aiming to bridge resource gaps in agriculture and allied sectors by offering financial support for activities that boost overall growth and farmers’ income.
• Pradhan Mantri Kisan Sampada Yojana (PMKSY): Aims at modernizing and strengthening the food processing sector. It focuses on creating infrastructure facilities to reduce wastage and increase value addition in agricultural produce. PMKSY plays a significant role in boosting farmer incomes, reducing post-harvest losses, and promoting food security in the country.
• The Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM-KUSUM) Scheme: Launched in March 2019 with total INR 344 bn (USD 4.1 bn) central financial support, aims to provide energy security to farmers, de-dieselize and promote the use of renewable energy in the agricultural sector, and reduce environmental pollution. PM Kusum Scheme focuses on solarizing 14L grid-connected agricultural pumps and provides subsidies to individual farmers who have grid-connected pumps to retrofit their pumps with solar panels

 

Oswal Pumps Limited: A Comprehensive Background

History and Evolution

Oswal Pumps Limited started in year 2003 with a view to build an integrated factory for manufacturing high quality pumps.

Business Segments and Products

Oswal Pumps Limited has a wide array of products which include submersible pumps such as stainless steel submersible pumps, agricultural submersible pumps, submersible water pumps, bore well submersible pumps, centrifugal pumps, and open well submersible pumps. The corporation has an extensive portfolio of products for different sectors like agriculture, industrial and residential. Its products are:

• Pumps: Oswal Pumps manufactures various pumps such as submersible pumps, Centrifugal Pumps, and Mono-block Pumps.
• Motors: The firm manufactures electric motors, such as induction motors and vibrator motors, which are used in consumer electronics, automobiles, and industry.
• Solar Water Pumping Solutions: Oswal Pumps offers solar water pumping solutions, which are easy to install, Eco-friendly as well as economical for both irrigation and water supply applications.

Service and Manufacturing Capacities:

Apart from manufactured products, the company also offers various services including installation services for its solar pumping systems; and maintenance services, which cover pumps, as well as motors, and customer support services. Its facility in Karnal, Haryana is among the largest single site plants of pumps in India.

Diversification and Solar foray:

Its 100% subsidiary, Oswal Solar Structure Private Limited, is engaged in assembling in solar modules. The company has also diversified its business through technical and management consultancy services, as well as through R&D and completion of EPC projects.

Competitive Landscape:

The company operates in a highly competitive industry with several established players. The major competitors include:

• Kirloskar Brothers Limited (KBL)
• CRI Pumps
• Texmo Industries Ltd.
• Jyoti Pumps Ltd.
• WPIL Ltd.
• Shakti Pumps

Competitor Analysis

The company faces intense competition from its major competitors, each with their strengths and weaknesses. Key observations include:

• Kirloskar: While a well-established player with a strong global network, Oswal Pumps has a more focused approach on solar pumps.
• CRI Pumps: While strong in the industrial and agricultural sectors, Oswal Pumps has a more diversified product portfolio and a stronger focus on solar pumps.
• Shakti Pumps: Its a competitor in the solar pump segment. However, Oswal Pumps has a more comprehensive product range.

Oswal Pumps has a competitive advantage in terms of its comprehensive product portfolio, efficient manufacturing process, and strong distribution network. Additionally, the company’s strong brand presence and wide range of products enable it to cater to a diverse range of customers. However, the company’s profitability is lower compared to some of its competitors, and it faces intense competition in the industry.

Company Strengths:

Oswal Pumps has reasonably strong fundamentals accompanied and the following key strengths:

• Product Diversification: With more than 20 products in the bucket, the company is unique from other rivals and caters to a broad customer base.
  Optimized Manufacturing : Having an optimized manufacturing process has enabled an up-to-date single of Oswal pump to reach high levels is terms of productivity and cost effectiveness.
• Wide Distribution Network: The company has a strong distribution network, which helps in reaching its products to a large customer base, thus contributing to its market position.

Company Weaknesses

Here are some notable challenges and weaknesses:

• Less Profitable: Oswal Pumps is less profitable than its average competitor when it comes to return on equity and its bottom line.
• Intense Competition: The company faces strong competition and risks losing its market share and pricing power.

Brief Financial Analysis

 

Strong Revenue Growth – Driven By Turnkey Solutions

The operating revenue of the company jumped 97.01% from INR 3,850.36 m in FY 2023 to INR 7,585.71 m in FY 2024 mainly on account of supply of Turnkey Solar Pumping Systems under PM KUSUM Scheme. It continued to witness healthy growth, as evidenced by the 9m FY25 revenue of INR 10,657 m.

This also translated into higher profits, with restated profit before tax increasing by 179.04%, from INR 466.01 m in Fiscal 2023 to INR 1,298.77 m in Fiscal 2024.

 

Strained Cashflow:

Despite the strong revenue growth and reasonable net margins, net cash flow from operating activities was weak in FY24 and negative in 9m FY25. This is likely to do with the high working capital intensity in the company’s business.

Figure: Summary Financials

Metric (INR m)	Period Ending March 31, 2022	Period Ending March 31, 2023	Period Ending March 31, 2024	Period Ending December 31, 2024
Revenue	3603.84	3850.36	7585.71	10656.71
Operating Profits	670.41	373.43	976.65	2157.95
PAT	169.29	341.99	976.65	2167.09

Source: RHP

Figure: KPI Comparison (9m Ending FY25)

(INR m)	Oswal	Kirloskar	Shakti	WPIL	KSB	Roto
Total Income	10673.44	32573	18635.7	12665.74	18333	2176.78
Gross Profit	4835.49	16816	7023	5260	7958	1404
Gross Margin (%)	0.45	0.52	0.38	0.43	0.44	0.65
EBITDA	3210.1	4661	4390	2127	2483	427
EBITDA Margin	0.3	0.15	0.24	0.17	0.14	0.2
PAT	2167.09	1744	341.99	1503.22	302.41
PAT Margin (%)	0.2	0.09	0.16	0.12	0.1	0.1
Return on Net Worth (%)	0.8
Return on Capital Employed (%)	0.66
Net Debt to Equity Ratio (in times)	1.08
Net Debt to EBITDA Ratio (in times)	1.08
Cash Conversion Cycle (Days)	142

Source: RHP

Figure: Valuation Comparison

	Oswal	Kirloskar	Shakti	WPIL	KSB	Roto
Price Earnings Ratio		41.94	66.72	27.31	66.79	42.08
Return on Net Worth (%)	0.89	0.22	0.24	0.19	0.17	0.22

Source: RHP