Oswal Pumps Limited, a leading manufacturer of water and solar pumps in India, has launched its ₹1,387 crore initial public offering. In an exclusive conversation with ET’s Neha Vashishth, Chairman & MD Vivek Gupta and CFO Subodh Kumar lay out the company’s expansion roadmap, financial performance, and what sets them apart in a rapidly growing solar pump industry. With operations spanning motors, controllers, and solar modules, the company is betting big on rural electrification, exports, and government schemes like PM-KUSUM. “We’re not just raising capital, we’re expanding our family,” says Gupta, urging retail investors to be a part of Oswal’s next growth phase.
Excerpts:
Q. The ₹1,387 crore issue of Oswal Pumps Limited has hit the markets. Can you briefly walk us through your business and its model?
Vivek Gupta:Oswal Pumps is a diversified water pump manufacturing company. We produce a wide range of pumps, from industrial and domestic to agriculture-based off-grid pumps, as well as solar pumps. What sets us apart is our strong backward integration, we manufacture pump motors, controllers, and even solar modules and structures in-house.
We operate in both the private and government sectors. Under the PM-KUSUM Yojana, we directly supply to government agencies and EPC players. We’re also expanding into specialized segments like helical pumps, boiler feed pumps, PCB pumps, and chemical pumps.
This integration helps us maintain control over quality and cost, ensuring robust margins. It also positions us strongly in both the domestic and export markets.
Q. Let’s talk numbers. How has Oswal Pumps performed financially?
Subodh Kumar:As of March 31, 2024, we recorded total revenue of ₹758 crore. For the nine months ended December 31, 2024, revenue stood at approximately ₹1,650 crore — a significant year-on-year growth.
Our gross margins improved from 35% (FY24) to 45% during the nine-month period. PAT margins also increased from 13% to 20%, reflecting strong operational efficiency and profitability.
Q. What about your future plans? Any expansion on the cards?
Vivek Gupta: Absolutely. With this IPO, we aim to scale up our production capacity, especially in the solar pumps segment, which is growing rapidly. The government’s goal to support over 8 crore farmers under the PM-KUSUM scheme creates immense market potential.
We plan to expand our backward-integrated operations to better serve both government and private sector demands.
Q. What differentiates Oswal Pumps from other players in the Indian market?
Vivek Gupta:Right now, the market is vast and largely untapped. Only about 7.5 lakh solar pumps have been installed so far across India, so there’s plenty of headroom for all players.
That said, our deep backward integration, end-to-end manufacturing capabilities, and experience give us a unique edge. We focus heavily on profitability and sustainability, which allows us to remain competitive in a cost-sensitive market.
Q. How has the solar and pump manufacturing industry evolved over the last five years? And is Oswal focusing more on domestic or global markets?
Vivek Gupta:
The solar pump market in India has seen exponential growth. But while there are nearly 2,000 players in the pump sector, organised, semi-organised, and unorganised, very few have the advanced technology required for solar pumps. Oswal is among the top few with end-to-end solar pump manufacturing capability.
Currently, we’re focused on both domestic and international markets. Exports and pan-India sales have grown by over 70–80% recently. And we plan to deepen our global footprint further.
Q. As of now, Oswal Pumps exports to about 22 countries, including Australia, Bangladesh, and Dubai. Any plans to expand further?
Vivek Gupta:
Yes, but with caution. While we export to over 20 countries currently, our priority is fulfilling strong demand in the Indian market. Our export lead times are longer — about 80–90 days — due to domestic supply commitments.
That said, once we expand capacity post-IPO, we aim to aggressively enter new geographies, particularly in Europe, the Americas, and other high-potential markets.
Q. How will the IPO proceeds be utilised?
Vivek Gupta:
We are raising ₹890 crore through a fresh issue. Here’s the breakdown:
- ₹360 crore will go into capital expenditure for capacity enhancement and automation at Oswal Pumps.
- ₹260 crore will be invested in our 100% subsidiary, Oswal Solar, to scale solar module manufacturing from 0.6 MW to 2.1 GW. We’ll also set up backward integration facilities — aluminium extrusion, EVA backsheet, JB box, and packaging plants.
- ₹330 crore will be used to repay working capital debt, making Oswal Pumps a completely debt-free company.
- The remaining ₹190 crore will be allocated towards general corporate purposes and working capital.
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