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Water treatment solutions provider Earth Water Group is in advanced stages to form a joint venture with Norwegian firm Aqualing to set up desalination plants in Indian coastal areas entailing investment of about Rs 750 crore over the next three years.
The JV will be between Fontus, an Earth Water Group firm, and Aqualing with the Indian firm slated to hold a minority stake while the foreign partner will have majority stakeholding.
The partners are in the final stages of negotiation and the two companies are likely to sign an agreement next week to formalise formation of the joint venture, which will be named Aqualing India Pvt Ltd.
“We are finalising the agreement and it is likely to be signed next week. The aim of the JV is to provide desalination services along the Indian coastal line,” Earth Water Group Managing Partner Sunil Ghorawat told PTI.
The JV will set up water treatment plants of various sizes at different locations, starting with South India, on build-own-and-operate (BOO) basis, he added.
“Depending upon the sizes of the plants, the investment will vary from Rs 50 crore to Rs 500 crore per plant. The JV is likely to invest Rs 750 crore in the first three years,” Ghorawat said, adding that 3-4 plants will be set up every year.
The water desalination capacity of the plants will range between 10 million litres a day and 100 million litres a day.
When asked about the source of funding, he said it will be mainly through debt.
The JV company will tie up with government, industry and institutions to provide desalinated water, he said.
When asked about the management structure of the proposed JV, Ghorawat said: “I’ll be spearheading the operations. Currently, we are in the process of appointing the country manager and other staff”.
In August, Earth Water Group raised $15 million (around Rs 83 crore) from Hong Kong-based private equity fund CLSA by diluting 20 per cent stake.
Earth Water Group offers various water treatment solutions and consultancy services through four group firms - Aventura, Fontus, Earth Water Accelerator and Everything About Water.
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