VA TECH WABAG , a leading Indian multinational water technology group, has announced a significant step towards expanding its presence in the municipal water sector. The company has entered into a non-binding equity partnership worth $100.00 million (approximately ₹862.00 crore) with an investor consortium that includes Norfund, the Norwegian Government's investment fund for sustainable development.

Partnership Details

The partnership, formalized through a non-binding term sheet, aims to establish a dedicated platform focusing on the development of capital projects for the municipal sector. This 'Municipal Platform' is set to commit equity investments of up to $100.00 million in capital projects over a 3 to 5 year period.

WABAG's Role

In this collaboration, WABAG will serve as the Technical Partner, responsible for delivering Engineering, Procurement, and Construction (EPC) services as well as Operations and Maintenance (O&M) services. The company will also make a minority investment in the platform, aligning with its asset-light strategy.

Strategic Objectives

The proposed platform is designed to leverage the combined expertise and resources of WABAG and its partners to address the growing demand for advanced water treatment technologies and infrastructure. By focusing on key opportunities in the municipal sector, the initiative aims to support sustainable water management and contribute to economic development.

Management's Perspective

Mr. S. Varadarajan, Whole-time Director & Chief Growth Officer of VA TECH WABAG, commented on the development: "This step of signing the term-sheet with strong global partners to establish the Municipal platform underscores our commitment to addressing global water challenges by leveraging cutting-edge technology and expertise. This initiative reflects our asset-light strategy, emphasizing partnerships that combine WABAG's technical excellence with the financial strengths of our collaborators to accelerate impactful and sustainable water solutions."

Company Background

VA TECH WABAG has over a century of expertise in water technology, offering innovative and sustainable solutions for both municipal and industrial sectors. The company operates in more than 25 countries and has designed and built over 1,500 municipal and industrial water and wastewater treatment plants worldwide over the past three decades.

Looking Ahead

This equity partnership represents a significant opportunity for VA TECH WABAG to expand its impact in the municipal water sector. As the collaboration progresses towards definitive agreements, it has the potential to accelerate the delivery of transformative water projects in key regions, furthering the company's commitment to addressing global water challenges.

VA TECH WABAG , a leading pure-play water technology company, has announced significant new orders totaling ₹360 crore, reinforcing its position in the industrial water treatment sector. The company, known for its sustainable water solutions, has secured two major contracts from prominent players in the oil and gas industry.

Major Contract from GAIL

The bulk of the new business comes from a substantial order worth approximately ₹340 crore from GAIL (India) Limited. This Design, Build, Operate (DBO) contract is for GAIL's integrated petrochemical complex in Pata, Uttar Pradesh. The scope of work includes:

• Design and construction of a 450 cum/hr UF & RO based Effluent Recycle Plant
• Implementation of an Evaporator based Zero Liquid Discharge (ZLD) Plant
• Development of a new Waste Water Treatment Plant
• Augmentation of the existing Waste Water Treatment Plant

The project's Engineering, Procurement, and Construction (EPC) phase is scheduled for completion within 24 months, followed by a 6-month Operation and Maintenance (O&M) period. Notably, the recovered water from this facility will be utilized as Cooling Tower Make-Up water, highlighting the project's focus on water recycling and conservation.

Renewed O&M Contract with IOCL

In addition to the GAIL project, VA TECH WABAG has secured a repeat Operations & Maintenance (O&M) order from Indian Oil Corporation Limited (IOCL). Valued at approximately ₹20 crore, this contract extends WABAG's O&M responsibilities for the Tertiary Treatment Reverse Osmosis (TTRO) Plant at IOCL's Panipat Refinery in Haryana for another three years.

It's worth noting that WABAG has been managing this plant's operations since its commissioning in 2006. The TTRO Plant, originally designed and built by WABAG nearly two decades ago, holds the distinction of being the first Industrial Water Recycle Plant in India's oil and gas sector.

Strengthening Market Position

Mr. S Natrajan, Head of Sales & Marketing for WABAG's India Cluster, expressed enthusiasm about these new contracts, stating:

"We are delighted to have secured these significant industrial water treatment orders and we sincerely thank GAIL and IOCL for their trust and confidence placed in us. These repeat orders serve as a powerful testament to the strength of our long-standing customer relationships, as well as to our technical expertise and capabilities."

These new orders not only demonstrate VA TECH WABAG's continued growth but also underscore its commitment to providing sustainable water solutions. As water scarcity becomes an increasingly pressing global issue, the company's focus on water recycling and zero liquid discharge technologies positions it well for future opportunities in the industrial water treatment sector.

Conclusion

VA TECH WABAG's expertise, spanning over a century, combined with its innovative approach to water technology, continues to drive its success in securing high-value contracts from major industrial players. As the company expands its portfolio of projects, it remains dedicated to its vision of addressing global water challenges and contributing to sustainable development goals.