VA Tech Wabag shares gained 1% on Monday, trading at ₹1,289.80, after the company announced it has secured a repeat large order from the Saudi Water Authority. The engineering, procurement and construction (EPC) contract is for an advanced technology brackish water reverse osmosis (BWRO) plant with a capacity of 50 million litres per day at Aljouf in Saudi Arabia.

Project Details and Timeline

The company has received a letter of award for the comprehensive water treatment facility, which will be designed, supplied, constructed and commissioned over a 14-month period. The following table outlines the key project specifications:

Advanced Technology Implementation

The facility will treat raw water supplied from bore well fields containing rare elements, requiring robust pre-treatment processes. The treatment system will utilize ceramic membrane technology followed by micron cartridge filtration and reverse osmosis to ensure long-term reliability and sustainable water supply for the region.

VA Tech Wabag classifies international orders in the $30 million to $75 million range as "large" orders. The contracting formalities will commence following the letter of award, with the effective execution date to be announced after contract signing.

Strategic Positioning

"The award reflects Saudi Arabia's proactive adoption of next-generation water treatment technologies and further reinforces VA Tech Wabag's leadership in advanced technology solutions such as BWRO, SWRO and recycle-and-reuse systems," said Phani Sathish Kadiyala, the company's country manager and branch GM for Saudi Arabia.

This development follows the company being declared the preferred bidder for the Hadda ISTP project in Saudi Arabia last week, demonstrating continued momentum in the Middle Eastern market.

Market Performance

Despite the positive news, VA Tech Wabag shares remain down 23% year-to-date. However, the repeat order from the Saudi Water Authority reinforces the company's competitive position in securing large-scale water infrastructure contracts in key international markets.

VA Tech Wabag shares gained over 2% in early trading on Wednesday, December 24, after the company announced it was declared the preferred engineering, procurement and construction partner for a major sewage treatment project in Saudi Arabia. The Saudi Water Partnership Company selected a developer consortium as the preferred bidder for the Hadda Independent Sewage Treatment Plant project, with VA Tech Wabag serving as their EPC partner.

Project Details and Scope

The Hadda Independent Sewage Treatment Plant project will be developed under a 25-year build, operate and transfer model by the developer consortium comprising Metito Utilities Ltd., Etihad Water and Electricity Company PJSC and SkyBridge Ltd. Company. The comprehensive EPC scope encompasses the design, engineering, procurement and construction of extensive treatment facilities.

Technical Infrastructure

The project includes several key components designed to handle substantial sewage treatment requirements. The facilities will feature a sewage treatment plant with scalable capacity, an advanced treated sewage effluent reuse system, a large storage tank, and an extensive transmission pipeline network. The infrastructure is designed to accommodate future expansion needs while maintaining operational efficiency.

Strategic Significance

Rohan Mittal, the company's head of strategy and business growth in GCC, emphasized the project's importance for VA Tech Wabag's regional presence. "This selection reinforces our strong presence in the Middle East and our growing partnership in Saudi Arabia," Mittal stated. The project represents a significant addition to the company's portfolio in the Gulf region.

Market Performance

Following the announcement, VA Tech Wabag shares were trading 1.1% higher at ₹1,308.00 per share around 9:25 am on Wednesday. Despite this positive development, the stock has declined 22.6% year-to-date. The company has not yet announced the commencement date for the Hadda ISTP project.