The company was incorporated in 1960. Lein, Schanzlin & Becker A. G., West Germany, Industrial & Prudential Investment Co. Ltd., Mumbai and Mr. F. K. Heller, an expatriate German national, promoted the Company. In 1977 project for the manufacture of nuclear power pumps was to be set up in the MIDC Industrial Area in Pimpri-Bosari. The Company took up a new project for the manufacture of 4" submersible pumps and valves at Coimbatore. A technical collaboration agreement was signed with VELAN inc., Montreal, Canada for this purpose and ICICI sanctioned term loans of Rs 640 lakhs. Company took over Pofran Engineering which is now its 75 per cent subsidiary. In 2001, KSB Pumps set up GFSMS, e-business initiative, which aims at sharing online availability of stock across all godowns in India. In August 2001, its board approved the merger of its subsidiary, Grade-o-Castings with itself. Under this amalgamation, shareholders of Grade-o-Castings got one share of KSB Pumps of Rs 10 fully paid for every one share of Grade-o-Castings of Rs 100 fully paid.

Products & services:

KSB Pumps is one of the largest manufacturers of pumps and valves in India. The company is engaged in power driven pumps and valves. KSB Pumps is engaged in the business of manufacturing power driven pumps and industrial valves. KSB`s areas of application range from building services to industrial processes, water engineering, mining and energy technology. The company also provides solutions in the area of heating and air-conditioning problems. KSB products are used in chemical, petrochemical and other industries to transport aggressive, corrosive, explosive, solids-laden and viscous liquids. KSB products are also used in industrial and municipal waste water. KSB Pumps was incorporated in 1960 by KSB AG, Germany, one of the largest pump manufacturers in the world. KSB plants are located at Pune, Nashik, Ahmednagar (in Maharashtra), Coimbatore (in Tamilnadu) and Mala (In Kerala). The main products exported by KSB are water, multi-stage and coolant pumps.

Valuation:

Credit rating agency, ICRA has assigned LAA rating to the Rs 400 million term loans and Rs 51.5 million fund based bank facilities of KSB Pumps (KSB). The rating indicates high-credit- quality assigned by ICRA and the rated instrument carries low credit risk. At current market price, stock is trading at 8.24 P/E multiple of its FY2010 estimated earnings. We recommend investors to buy "KSB Pumps Limited" with medium to long term investment horizon.