Shakti Pumps, a developer of solar water pumps, aims to more than double its topline to Rs 2,000 crore this fiscal year, owing to increased adoption of its products by farmers, aided by significant government and state subsidies of up to 90%.
The company ended FY21 with a topline of Rs 930 crore, virtually tripling its revenue from the previous year. According to Dinesh Patidar, chairman and managing director of Shakti Pumps, the solar engineering, procurement, and construction (EPC) business (building up the entire unit) brought in Rs 560 crore last year, while exports brought in Rs 180 crore.
Shakti Pumps, founded in 1982 in Pithampur, near Indore, produced the country’s first BEE 5 star-rated pumps and was also the first local company to create 100% stainless steel pumps and energy-efficient motors.
Its products are currently available in more than 125 countries throughout the world. Since pioneering solar water pumps in 2010, the company has applied for 20 patents.
Alpex Solar, Bright Solar, Claro Energy, Conergy Energy, Tata Power Solar Systems, Lorentz, Greenmax Technology, and Udhaya Semiconductors are among the other major participants in the solar water pump market.
Shakti Pumps has two plants in Pitampur, with a combined annual manufacturing capacity of 5 lakh solar and motorized units in two shifts and 3.5 lakh units in a single shift. Its nearby special economic zone (SEZ) plant has the capacity to produce 1.5 lakh units per year.
We predict strong demand for solar water pumps this year, as people become more aware of the significant financial benefits they provide, and the favorable monsoons provide them with sufficient liquidity, according to Patidar.
“Accordingly, FY22 revenue should more than double to Rs 2,000 crore. The export front also looks promising as we just bagged a Rs 250-crore order from Uganda. This should help us net Rs 500 crore from exports this fiscal year,” Patidar told PTI on Wednesday, adding and earn around Rs 75 crore in net income.
He expects the venture into southern markets, particularly Telangana, Andhra Pradesh, and Tamil Nadu, to improve volumes.
Since entering the market in 2010, Shakti Pumps has installed over 1 lakh solar pumps out of a total of 1.2 lakh, with 20,000 units installed under the EPC model (combining the solar water pump and solar power panel units) and 15,000 units sold to others who install such pumps across the country in FY21.
Rajasthan, Haryana, Punjab, MP, and Chhattisgarh are the company’s key markets, while Andhra Pradesh, Telangana, and Tamil Nadu will be new growth areas in a year or two, according to Patidar.
Shakti Pumps offers approximately 260 pump models and over 1,000 SKUs, with capacities ranging from 300 watts to 300 kilowatts.
A solar pump unit costs roughly Rs 2.15 lakh on average, and the price varies based on the power and load capacity. He said it buys solar panels from the Adani Group.
Due to increased use in the home and agricultural sectors, rising government backing (central subsidy of 30% and states offering up to 65%), and cheap maintenance costs, Patidar forecasts significant volume growth over the next two years.
Maharashtra, he said, is making a big contribution to market expansion by providing farmers with capital subsidies of up to 95%.
By 2021, the centre hopes to have installed 1 million solar water pumps for irrigation and drinking water. A farmer/user, he claims, may recoup the full cost in a year.
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