VA Tech to float joint venture in Oman

Our Bureau Chennai | Updated on January 24, 2011

The Chennai-based VA Tech Wabag, a total water management company, has entered into a joint venture agreement with Zawawi Trading Company LL.C in Oman to tap the operation and maintenance business.

According to a press release from the company, VA Tech Wabag will float a subsidiary in Oman with Zawawi holding 30 per cent stake in the joint venture. The company will target contracts for Operation and Maintenance of water and waste water treatment plants, sewerage and water networks and pumping stations.

Zawawi Trading is a well known business group in the Sultanate of Oman, and the local presence will strengthen VA Tech Wabag's focus and competitiveness in the Oman water market.

The release quoting Mr Rajiv Mittal, Managing Director, VA Tech Wabag, said that water being local business, such partnerships would enable synergies and growth envisaged by Wabag in O&M business.

Mr Mittal told Business Line, VA Tech Wabag has a strong presence in Oman, a major market in the region for water-related business including waste water treatment and desalination. A few years back it set up the Alansab sewage treatment plant in partnership with another local player Galfar. This was the first time that sewage water was treated to reusable levels in that market. VA Tech has also set up a desalination plant, and a second one has been announced in partnership with Nagarjuna Construction. The countries in the region are increasingly looking at international joint ventures not only to grow the business for local players but also to upgrade skills in the sector, Mr Mittal said.

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Published on January 24, 2011
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