About the Company:
Oswal Pumps Ltd is engaged in the manufacturing solar-powered and grid-connected submersible and monoblock pumps, electric motors comprising induction and submersible motors as well as solar modules, which we sell under the ‘Oswal’ brand.
Company is the fastest growing vertically integrated solar pump manufacturers in India in terms of revenue growth during the last three fiscals, with our revenues growing at a CAGR of 45.07% between Fiscal 2022 and Fiscal 2024.
Company has over 22 years of experience in pumps encompassing engineering, product design, manufacturing and testing.
Company caters to the diverse requirements of end-users in the agricultural sector for irrigating fields; the residential sector for maintaining gardens and fountains, extracting water, supplying water to overhead tanks and cleaning households and small establishments; industries which use our pumps in boilers and water treatment, water transportation and sewage applications and use our electric motors in machinery applications and cooling tower systems.
Company commenced its operations in 2003 with the manufacturing of low-speed monoblock pumps. Over the years, company expanded our operations to manufacture grid-connected high-speed monoblock pumps, grid-connected submersible pumps and electric motors.
About Pradhan Mantri Kusum Scheme:
In March 2019, the Government of India launched the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan Scheme (“PM Kusum Scheme”) with a total ₹ 344 billion (USD 4.1 billion) central financial support with the objective of installing 1.40 million standalone solar agriculture pumps in off-grid areas to provide energy security for farmers, reduce the consumption of diesel, promote the use of renewable energy in the agricultural sector and reduce environmental pollution.
The PM Kusum Scheme also focuses on the solarization of 3.50 million existing grid-connected agricultural pumps and provides subsidies to individual farmers who have grid-connected pumps to retrofit their pumps with solar panels.
Recognizing the benefits provided by the PM Kusum Scheme, company decided to leverage our extensive experience in pump manufacturing and expanded our operations to manufacture solar powered agricultural pumps in 2019. We started supplying these pumps to players participating and providing Turnkey Solar Pumping Systems (defined below) under the PM Kusum Scheme, including Tata Power Solar Systems Limited.
Of the estimated 0.61 million solar powered agricultural pumps installed at ground level in various states under the PM Kusum Scheme, as of December 31, 2024, company has, directly and indirectly, supplied 0.23 million solar powered agricultural pumps, representing approximately 38.04% of the total solar powered agricultural pumps installed.
Orders Executed by the Company under the PM Kusum Scheme:
As of December 31, 2024 we have executed orders for 38,132 Turnkey Solar pumping Systems directly under the PM Kusum Scheme for several states such as Haryana, Rajasthan, Uttar Pradesh and Maharashtra.
Within four years of supplying solar powered agricultural pumps, in Fiscal 2024 and 2023, company emerged as one of the largest suppliers of solar powered agricultural pumps under the PM Kusum Scheme
Company’s Solar Pumping Solutions Capabilities:
Company is one of the few fully integrated Turnkey Solar Pumping Systems providers in India with the capability to manufacture solar powered agricultural pumps, solar modules and pump controllers and provide installation services for such systems.
To enhance our capabilities as Turnkey Solar Pumping Systems provider, we commenced manufacturing solar modules for Turnkey Solar Pumping Systems on January 8, 2024 through our wholly-owned subsidiary, Oswal Solar Structure Private Limited.
The chart below illustrates the progression of our manufacturing capabilities over the years:
Company’s Manufacturing Capabilities:
Company operates a manufacturing facility located at Karnal, Haryana, which is one of India’s largest single-site facilities for manufacturing pumps, covering a total land area of 41,076 square meters as of December 31, 2024.
Company’s manufacturing facility is strategically located near major agricultural states such as Haryana, Punjab and Uttar Pradesh and had an annual installed capacity of 1,160.07 metric tonnes (“MT”) for stainless steel pumps, 2,366.04 MT for cast iron pumps, 1,314.72 MT for stainless steel motors and 561.60 MT for cast iron motors, as of December 31, 2024.
Company’s Distributor Network:
Company has an extensive network of distributors in India, which has grown from 473 distributors as of March 31, 2022 to 925 distributors as of December 31, 2024.
Company’s Revenue from different customers for the period/years indicated:
Competition in the Business:
Company face competition from domestic and international manufacturers for monoblock and submersible pumps, electric motors and solar modules. Technology, price, design, quality, delivery, and engineering capabilities are the primary elements of competition in our industry. Company’s peers are Kirloskar, Shakti Pumps, C.R.I. Pumps, WPIL Limited, KSB Pumps and Roto Pumps
Management Team:
- Mr. Vivek Gupta (Designation: Chairman and Managing Director )
- Mr. Shivam Gupta (Designation: Whole-time Director )
Objectives of the Issue:
Offer For Sale: (Rs.497.34 cr)
- Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to their respective portion of proceeds of the Offer for Sale.
Fresh Issue: (Rs.890 cr )
- Funding certain capital expenditure of our Company;
- Investment in our wholly-owned Subsidiary, Oswal Solar, in the form of equity, for funding the setting up of new manufacturing units at Karnal, Haryana;
- Pre-payment/ re-payment, in part or full, of certain outstanding borrowings availed by our Company.
- Investment in our wholly-owned Subsidiary, Oswal Solar, in the form of equity, for repayment/prepayment, in part or full, of certain outstanding borrowings availed by Oswal Solar; and
- General corporate purposes (collectively, the “Objects”).
Oswal Solar proposes to set up the following new manufacturing units:
(i) manufacturing unit for aluminium frame for PV solar panel (“Aluminium Frame Facility”) at the Existing OSSPL Facility;
(ii) 1,500 MW manufacturing unit for PV solar module (“Solar Module Facility”) at 1118, GT Road, Opposite Neelkanth Star Dhaba, 71/3 Delhi Side Milestones, Karnal, Haryana 132001 (“Proposed Project Land”);
(iii) 1,500 MW manufacturing unit for ethylene-vinyl acetate (“EVA”) encapsulant at the Proposed Project Land (“EVA Encapsulant Facility”, and together with the Solar Module Facility, the “Proposed Facility”).
The above manufacturing units will increase Oswal Solar’s installed capacity, to support the growing demand for solar modules in the Indian and global markets.
The Proposed Facility will assist us in developing a complete value chain of PV solar modules and will play a pivotal role in supporting our growth objectives. The Aluminium Frame Facility will reduce our reliance on external suppliers, resulting in improved cost efficiency and enhanced product quality, and the EVA Encapsulant Facility will enhance our vertical integration.
As a result, we will gain greater control over the quality and consistency of our solar modules, leading to more reliable and durable products.
The table below sets forth details of capacity as of and/ or for the below period and expected capacity after the new manufacturing units for the Proposed Facility are set up(1):
Positives for the Company:
One of the largest suppliers of solar powered agricultural pumps under the PM Kusum Scheme, well positioned to capitalise on strong industry tailwinds.
- Company is the fastest growing vertically integrated solar pump manufacturers in India in terms of revenue growth during the last three fiscals, with our revenues growing at a CAGR of 45.07% between Fiscal 2022 and Fiscal 2024.
- Within four years of supplying solar powered agricultural pumps, in Fiscal 2024 and 2023, Company emerged as one of the largest suppliers of solar powered agricultural pumps under the PM Kusum Scheme.
Vertically integrated manufacturing competencies.
- Company’s operations are vertically integrated, encompassing the manufacturing of components for our pumps and the production of solar modules for solar-powered pumps.
End-to-end pump manufacturing capabilities.
- Company has end-to-end pump manufacturing capabilities, encompassing manufacturing components of monoblock and submersible pumps using processes such as cast-iron casting, investment casting, aluminium die casting, electrical grade stamping, submersible cable and wire winding, injection plastic moulding, rubber moulding, thrust bearing, stainless steel stator casing, stamping, machining and assembly and packaging.
- Over the years, company has undertaken extensive backward integration initiatives, enabling us to produce several critical components of a pump and motors and undertake various processes in-house which provides us with competitive advantages.
End-to-end capabilities for Turnkey Solar Pumping Systems.
- Company provides end-to-end solutions for Turnkey Solar Pumping Systems, offering comprehensive services including design, engineering, procurement, site survey, project management, manufacturing, installation, commissioning, and warehousing.
- Company’s project management services involve supervising and dealing with manpower across the value chain, while our installation and commissioning services encompass several tasks such as setting up the entire solar pump at the site and verification and testing of components.
Comprehensive product portfolio in multiple product specifications.
- Company offers a wide range of solar-powered and grid-connected submersible and monoblock pumps, electric motors as well as solar modules under our ‘Oswal’ brand. Company’s product portfolio helps us attract new customers, expand our market reach, solidify our industry position, and mitigate business risks by reducing dependence on any single product or end-use market.
Strong presence in major agricultural states in India including Haryana and growing presence in other states.
- Over the years, Company has expanded our footprint in India, with our products being sold in India between April 1, 2021 and December 31, 2024 through our distributors.
- Company has a strong presence in North India particularly in the major agricultural state such as Haryana and have presence in other regions in India such as Maharashtra, Uttar Pradesh, Rajasthan, Chhattisgarh and Punjab. Company’s diversified geographical outreach helps us in expanding our customer base and also reduces the risk associated with dependence on any specific region for sales.
Extensive distribution network catering to a diversified customer base.
- Company has an extensive network of 925 distributors in India that has enabled us to serve our customers as of December 31, 2024.Company believes that our robust distribution network in India helps distinguish us from the competition in our industry where a lack of well-developed distribution channels can pose significant barriers to entry.
Company Plans to Increase presence in select geographies in India and grow our exports.
- Company intends to enhance our presence and increase the sale of our products in India. Company intends to do so by growing our distributors network.
- Company’s network of distributor has grown from 473 distributors as of March 31, 2022 to 925 distributors as of December 31, 2024. Company intends to increase our distributors, particularly, in Chhattisgarh, Karnataka, Assam, Kerala, Andhra Pradesh, Telangana, Tamil Nadu and Gujarat.
