§1What this business is
This unit makes bare-shaft centrifugal pumps with 150 mm suction and 150 mm delivery, driven by a separate electric motor or diesel engine — larger than the monoset pumps sold to homes and small farms. Cast-iron castings, bronze and steel rod are bought in. The casing, impeller and shaft are machined on lathes, a milling machine, slotting and drilling machines; the pump is assembled and every piece is run on a test bench that measures discharge, pressure, speed and power to IS 6595. Buyers are factories, water and sewage treatment plants, construction sites that need dewatering, mines and farms.
Capacity: 6,000 pumps a year (suction 150 mm × delivery 150 mm) at ₹20,000 each = ₹12 crore, on one shift for 300 days; 60% in year 1 rising to 100% in year 5.
§2Is it right for you?
Who it is for
A mechanical engineer or machine-shop owner who already knows pump buyers and casting suppliers.
Who it is not for
Someone without large working capital or without machining and pump-testing experience.
Advantages
- Fixed investment is small — about ₹36 lakh of machines and test gear
- Pumps are needed by almost every industry, water works and construction site
- Standard general-purpose machine tools do the work
- The DPR is written for import substitution and export
Drawbacks
- Working capital is over seven times the fixed investment
- Castings, bronze and bought-out parts make up about 95% of running cost
- The pump test system alone costs ₹17.23 lakh
- Established pump brands compete hard on price and efficiency
Skills you need
- Machining castings to close tolerance
- Impeller balancing and pump assembly
- Performance testing to IS 6595
- Selling to industrial and government buyers
Why difficulty 4/5: Precision machining, performance testing and very large working capital.
§3Market
Who buys
- Process industries — oil and gas, chemicals, pharmaceuticals, paper, textiles, food and power plants
- Water and sewage treatment plants
- Construction sites and mines that need dewatering
- Agriculture
How it sells
- Direct sale to factories and project contractors
- Pump dealers and distributors
- Government and public-sector tenders
Good to know
- The DPR notes that an electric motor costs less to run than a diesel engine as the prime mover.
- Sale price in the DPR: ₹20,000 a pump, before taxes.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Hacksaw machine, 600 mm stroke | 2 | ₹80,000 |
| Lathe machine (300 mm centre height × 800 mm bed length) | 2 | ₹7,00,000 |
| Universal milling machine | 1 | ₹2,50,000 |
| Slotting machine | 2 | ₹70,000 |
| Lathe machine (150 mm centre height × 1,000 mm bed length) | 3 | ₹2,25,000 |
| Pillar drilling machine, 25 mm capacity | 2 | ₹80,000 |
| Motor testing apparatus | 2 | ₹30,000 |
| Pump test system as per BIS (hydraulic testing machine, impeller balancing machine, electromagnetic flow meter with piping and valves, pressure and vacuum gauges, tachometer, electrical meters) | 1 | ₹17,23,000 |
| Tools, jigs, fixtures and gauges | — | ₹1,00,000 |
From: DC-MSME import-substitution DPR — Centrifugal Pumps (2021)
- Cast-iron castings40 tonnes a month at ₹70,000 a tonne
- Steel rod6 tonnes a month at ₹1,00,000 a tonne
- Bronze4 tonnes a month at ₹6,00,000 a tonne
- Other bought-out items₹25,00,000 a month, lump sum
From: DC-MSME import-substitution DPR — Centrifugal Pumps (2021)
§5Licences & registration
- Udyam registration
- GST registration
- Factory licence
- BIS licence to IS 6595 where the buyer or a quality control order requires it
- State Pollution Control Board consent as applicable
Start it in your state
Pick your state: today’s cost, central + state subsidy, raw material, land and help, on one page.
§6Schemes & subsidies
At ₹2.99 crore the project is far above PMEGP's ₹50 lakh ceiling; most of the need is working capital, so plan a cash-credit limit with the bank — CGTMSE can cover loans up to ₹10 crore without collateral.
§7Money
How the investment is worked out: Plant, machinery and other fixed items ₹35,93,000 (machines and pump test system ₹31,58,000, tools ₹1,00,000, fixtures and electrical installation ₹2,15,000, pre-operative expenses ₹1,20,000) + three months' working capital ₹2,62,77,300 = ₹2,98,70,300 as printed. The DPR lists land and building at ₹15,00,000 (120 sq m of land ₹3,60,000 and 100 sq m of building ₹11,40,000) but does not add it to this total.
Working capital: Recurring expenses are ₹87,59,100 a month, of which raw materials are ₹83,00,000; three months (₹2,62,77,300) are provided.
Prices from April 2021 — machinery, casting and bronze prices will be higher now.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: EEPC India
- The DPR was written to cut imports of centrifugal pumps; it gives no export target for this unit.
§9Risks — where people fail
- Swings in the price of cast iron and bronze
- Casting defects that show up only during machining or testing
- Slow payment from contractors and government departments
- Pumps that miss the promised head, discharge or efficiency
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working industrial centrifugal pump manufacturing (150 mm) unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Industrial Centrifugal Pump Manufacturing (150 mm)?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.