Shakti Pumps to target salt farmers

Company is in process of establishing dealer network in coastal Andhra

Madhya Pradesh-based Shakti Pumps (India) Limited (SPIL), manufacturers of stainless steel submersible pumpsets, is entering Andhra Pradesh and has set sight on salt farmers located in the coastal districts of East Godavari, Visakhapatnam and Srikakulam among others.

The company is now in the process of establishing its dealer network in coastal Andhra, Dinesh Patidar, executive director of SPIL, told Business Standard.

Though Andhra Pradesh ranks top in the total number of pumpsets engaged in farm sector and is still growing, premium brands like Shakti, are planning to target only such segments like salt farmers as part of their strategy to tap new market segments.

"Also when farmers enjoy free power here, why would they bother about the quality and energy efficiency parameters offered by the company, which, of course, come at a premium. So, first we will try to sell our pumpsets to those who pay power bills," Patidar said.

Salt farmers need to change their pumpsets at least every 3-4 months due to rusting and corrosion. According to him, the steel fabricated pumpsets of Shakti assures over 40 per cent less consumption of energy besides lasting longer compared to conventional pumpsets. In terms of cost, a 10 HP Shakti pumpset is priced around Rs 25,000 whereas a cast-iron pump is available at around Rs 18,000 per piece.

"But in terms of performance, Shakti's pumps last 5 to 10 times longer than other pumps. And in terms of energy consumption, the amount of water pumped out by a 12.5 HP cast-iron pump running for 12 hours is equivalent to a 7.5 HP stainless steel pump that runs for barely 6 hours," he said.

The company's first focus was Gujarat where 66 per cent of the country's salt is produced.

"Keeping in mind the advantages over all other pumps, salt farmers in Gujarat approached us to install SS pumps in their salt fields. As a result, we have already supplied SS pumps worth over Rs 1 crore there," Dinesh said while hoping to get Rs 10 crore worth of orders from Gujarat alone in the coming days.

"We have now chosen Andhra Pradesh in South India and will extend our presence to other southern states in due course," he said.

The company has a manufacturing plant in Indore and hopes to increase its turnover to Rs 45 crore this year from Rs 35 crore last year. As part of its quest for new markets, the company is now targeting salt farmers across the country.

Normally, these farmers use submersible pumps to pull water into their fields. On an average, each of them uses 70-80 submersible pumps in their fields ranging from 20 HP to 30 HP of various brands, he said.

Termed as the world's second largest and Asia's largest manufacturer of stainless steel submersible pumps, Shakti Pumps (India) Limited, bagged a $ 3 million order from US-based Vervent Inc. The entire order from Vervent Inc, one of the largest traders of pumpsets in US, will be executed by the end of September 2005, Patidar said.