Demand for local irrigation and agricultural solutions provider Agrico’s range of Shakti submersible pumps increased by more than 400% in the last year, owing to an extensive brand campaign initiated by the company.

The growth is expected to continue this year, says Agrico marketing manager Ivan du Plooy, who facilitated road shows in all parts of the country as part of the campaign, during which he provided training to Agrico customers and distributors.

“We also ran print and electronic advertis- ing campaigns and exhibited at most agricul- tural and industrial trade fairs,” he says.

Du Plooy tells Engineering News that local demand stems mostly from the farming community that needs water supply from boreholes. There is also a growing demand from the mining and industrial sectors in South Africa.

Owing to the rapid growth in demand for the submersible pumps, Agrico decided to add 100 mm Shakti pumps to its product offering, further extending the range of Shakti products available in the country.

Du Plooy notes that, while this brand of pumps has only been available from Agrico since 2010, it has been available on the international market for more than 30 years, which makes it a long-standing proven product.

Imported from India, Shakti submersible pumps are manufactured from grade 304 stainless steel, which provides wear resistance and reduces the risk of corrosion when pumping clean noncorrosive liquids.

“These pumps also offer energy efficient duty points, ranging from 1 m3/h to 280 m3/h, which saves costs over time,” says Du Plooy.

Agrico marketing and operational director Alfred Andrag tells Engineering News that Agrico has sold more than 1 000 Shakti submersible pumps in South Africa, without a single guarantee being claimed to date. This affirms his belief that the quality of the imported pumps is beyond doubt.

“Manufacturers from India and China are more productive and price competitive,” he says, adding that this is why local pump production comprises only a small percentage of the market in South Africa, compared with international manufacturers who offer better technology and lower prices.

Andrag asserts that the local pumps industry remains a highly contested market, adding that the biggest potential for growth in the pumps industry lies outside South Africa, in sub-Saharan Africa.

He adds that rigid labour laws, a lack of productivity in the labour force, high inflation – owing to electricity price hikes by State-owned power utility Eskom – corruption, and political and social uncertainty contribute to foreign investors choosing to invest in other African countries rather than South Africa

Further, Andrag highlights the shortage of trained technical people in the South African pumps industry but assures Engineering News that Agrico constantly trains its own staff and provides training for customers in collaboration with its suppliers.

However, as a result of the nationwide skills shortage, the company sometimes struggles to retain the services of employees once they have been trained, losing them to competitors or more lucrative industries, says Andrag.

Meanwhile, Andrag says Agrico is refocusing its core business, which comprises water and machinery solutions for the agriculture and industrial sector.

He explains that, while the agriculture sector is still Agrico’s main market, business with other industries, including the mining industry, is “growing nicely”.

He adds that the company is expanding into the industrial sector and is hoping to increase exports into the rest of Africa.

Currently, about 80% of Agrico’s market base is in South Africa, owing to the company’s broad national footprint. “With 26 company-owned branches, sales are widely distributed,” says Andrag.

“Our aim is to continue ope- rating at a higher level by setting up new branches, expanding Agrico’s product range and growing further into the African market.”

Agrico is a fourth-generation family business, with a staff complement of more than 850 and yearly sales exceeding R1-billion.

Andrag says the company’s successful transition from a third- to a fourth-generation business is significant, as the succession from one generation to the next is often a critical stage for a family business.

“The family members who work in the business are all professional graduates, including one chartered accountant and three engineers. Further, because of the size of the business and, through proper planning, we have each had an opportunity to specialise in a specific field, while working as co-owners of the business. This means that Agrico stands on several ‘strong legs’,” he affirms.

Andrag describes Agrico’s management style as conservative, as the company works with its own capital. “This philosophy coincides with our primary customers – the farming community and construction and industrial companies, which generally tend to favour long-term business relationships, based on mutual trust,” he asserts.

In addition to supplying pumps, Agrico offers a turnkey integrated service. This involves the surveying, design and spe- cification of products for a particular application; manufacturing; importing; installation and a comprehensive after-sales service.

What Agrico does not manufacture or import, it buys from a local factory.

“We are constantly on the lookout for new agencies to complete our product line,” says Andrag, adding that, because Agrico is a sole distributor for many of its products, it carries more than R250- million of stock at all times to ensure good availability and service.

Further, the Bellville-based company is strengthening its branch network, with new or upgraded facilities in Caledon, Ceres, George, Malmesbury, Piketberg and Vredendal in the Western Cape; Hartswater, Kakemas and Kimberley in the Northern Cape; Bloemfontein in the Free State; Cradock in the Eastern Cape; Lichtenburg in the North West; Nelspruit in Mpumalanga and Pietermaritzburg in KwaZulu-Natal.