We are experiencing steady growth, with an annual increase of 30-40%, and we expect this to continue in the coming years.

Narsing Agrawal
Vice – President, Modern Hiring 

What is the current scenario for rentals of dewatering pumps and dewatering plants? How do you view the market?

In recent years, there has been a noticeable increase in demand for dewatering pumps—whether for outright purchase or for rental solutions. Focusing particularly on the rental side, the demand has risen significantly because customers today prefer a hassle-free experience. They seek complete solutions, prioritizing outcomes such as the volume of water that can be efficiently dewatered, rather than just purchasing equipment.

Several segments are driving this growth, with mining being a major contributor. The demand for dewatering in mining has surged, primarily because many mines that were previously unallocated have recently been reassigned and reopened for operations. These reopened mines often have stagnant water that must be removed before mining activities can commence, fueling the need for dewatering solutions.

Another significant driver is the construction sector. Weather patterns have become increasingly unpredictable, with rainfall no longer confined to traditional seasons. Many construction sites lack adequate drainage infrastructure, leading to frequent waterlogging and flooding. Natural disasters such as cyclones have also become more common, creating a continuous demand for dewatering equipment and rental solutions. Together, these factors are contributing to strong growth in the dewatering market.

What are the key sectors currently driving demand for dewatering plants?

There are several sectors where we are seeing a strong surge in demand for dewatering plants.

First and foremost is mining. As I mentioned earlier, the mining sector is witnessing significant growth, and with it, the need for efficient dewatering solutions is increasing.

The second major driver is flood management. With the rising frequency of floods, there is a growing requirement for dewatering systems to manage excess water effectively.

The third area involves raw water pumping sites, particularly where pipelines are aging. Many pumphouses, typically located near rivers, canals, and dams, require dewatering systems to ensure the smooth flow of water.

The fourth key sector is construction. With rapid infrastructure development and an improving GDP, there has been a surge in new projects. For example, last year, one of the major refinery site faced significant Water Logging , and the Adani Group’s massive project at Khavda also had substantial water management needs.

All these factors combined are driving a substantial increase in the demand for dewatering plants across various sectors. 

Are there any challenges and constraints you face in this sector?

Definitely. As I mentioned earlier, most of the projects we work on are located in remote areas, which brings its own set of challenges.

The first major challenge is logistical arrangements — mobilizing equipment, resources, and materials to these remote sites is never easy.

The second challenge is manpower management: retaining skilled personnel in such isolated and often difficult conditions is tough.

In dewatering specifically, the situation is even more complicated. Typically, the environment is already severely disrupted, and managing the dewatering process safely becomes a major concern. Safety is critical — both for equipment and personnel. For instance, if dewatering pumps are installed near a river and the river floods, the risk multiplies significantly.

Another challenge is the business model itself. In most cases, dewatering contracts are output-based — we are paid based on the volume of water extracted, measured per gallon or per cubic meter per hour. This means our payments are linked strictly to results, irrespective of the investment made in terms of equipment or manpower.

But that’s the nature of the sector — wherever there is opportunity, challenges naturally come built-in. 

What are the key features of dewatering pumps?

Based on extensive discussions and industry best practices, we have categorized dewatering pumps into different segments to address specific application needs.

For instance, in flood control scenarios, the primary requirement is high flow with low head. Since the water depth in such cases is generally shallow, the focus is on evacuating large volumes of water quickly. To meet this demand, we have developed a range of pumps capable of delivering high flow rates with heads up to 40 meters, ensuring optimal performance even within this range.

We have structured our product segmentation to effectively handle a variety of challenges, whether it’s related to the depth of a mine or the water body from which water needs to be extracted. 

Furthermore, we offer pumps in both electrically powered and engine-mounted versions. Where electric power is readily available, electric pumps can be deployed; where it is not, engine-driven pumps provide a reliable alternative.

Additionally, we have designed floating barges equipped with pumps. These can be deployed directly onto water bodies, allowing efficient and effective dewatering operations even in challenging conditions.

What kind of after-market support do you provide to customers?

In the rental business, strong after-market support is absolutely critical. Customers expect immediate service — they won’t wait even an hour when equipment is rented. Therefore, after-market support must be swift, efficient, and always on alert. Without a robust after-market system, it becomes extremely difficult to succeed in the rental segment, especially since most contracts are output-based. Any shortfall in delivering the contracted output, such as the volume of water to be extracted, can attract heavy penalties. Hence, not only must after-market support be strong, but backup arrangements and contingency plans must also be in place when executing such contracts.

Coming to diesel gensets, how do you see the rental market evolving?

To understand the rental market for diesel gensets, let’s first look at the overall genset industry. The government’s push for data localization — requiring businesses to store data within India — has significantly boosted the need for data centers, which are extremely power-intensive. For context, a simple search might require 1 kilowatt of power, whereas AI-based activities can demand up to 10 kilowatts. The resulting power gap has led to massive demand for backup power solutions in data centers.

Moreover, with GDP growth, new mining operations, and a surge in infrastructure projects like the bullet train — for which we supplied 100 to 150 gensets at one point — the demand for diesel gensets has risen sharply. New semiconductor manufacturing facilities are another emerging sector fueling this demand. Companies like L&T are executing large-scale projects nationwide, creating an additional boost. On the regulatory side, significant changes were introduced in 2023. Manufacturers of gensets below 800 kilowatts must now comply with CPCB4+ norms, which are as stringent as BS6 norms in the automobile sector. In areas like NCR, old CPCB2 gensets are no longer permissible without retrofitting devices like RECDs, or users must switch to CPCB4+ gensets that require Diesel Exhaust Fluid (DEF) . This shift is compelling owners of older gensets to upgrade, further boosting demand.

Additionally, Indian manufacturers have become aggressive exporters, and global demand is supporting local manufacturing growth.

When it comes to rentals, there has been a significant mindset shift. Earlier, owning a genset was seen as a matter of pride. Today, the market has moved towards rentals, driven by flexibility and financial prudence. Back in 2010. This trend is not limited to us — many players have seen similar exponential growth.

The rental demand is coming from multiple sectors: data centers, mining, event management, healthcare (especially pharma and laboratory expansions), and natural disaster response. With healthcare infrastructure expanding into even the remotest areas, the need for reliable backup power is steadily contributing to the growth of the genset rental industry.

What are the challenges in the Genset market?

The genset market has become increasingly competitive with a wide range of players, including local, regional, and national brands. One of the primary challenges we face is competition across all these levels, from local players to national players. The quality of gensets offered by local suppliers differs significantly from what we provide. While price is often a deciding factor for customers, the value of quality is often overlooked, leading to issues down the line. When customers opt for lower-priced gensets, they may encounter trouble later, especially when the equipment fails to perform as expected.

Execution challenges are another hurdle, particularly in logistics. Some sites are hard to access due to low overhead lines or congested roads, making transportation difficult. Once equipment reaches the site, unloading and loading become another concern, as suitable cranes may not always be available, causing delays. Local challenges, such as resistance from local communities, are also prevalent. In many areas, locals view external workers as intruders on their land, making it harder to carry out operations smoothly. While technical challenges can be resolved, these logistical and social obstacles can be significant.

What are your expansion plans for the next 3-4 years?

We are experiencing steady growth, with an annual increase of 30-40%, and we expect this to continue in the coming years. To support this growth, we are expanding our infrastructure, including building more warehouses and adding new equipment. We are also exploring new business verticals, such as our recent venture into dewatering services, which is already making a positive contribution to our portfolio.

Furthermore, with the growing need for cooling solutions, especially in the data center sector, we see significant potential in expanding our cooling services. As temperatures rise and the demand for reliable cooling systems grows, particularly in high-heat areas, this is an area that we expect to see rapid growth and will continue to invest in.