Va Tech Wabag, a leading pure-play water technology player, hopes that its proven technological capabilities backed by a strong research and development, and execution excellence would come in handy to capitalise on the emerging growth wave in the water technology space.
The Chennai-headquartered company, which has completed 25 years of operations, sees massive business opportunities in the coming years in the water technology space due to maturing funding landscape and heightened focus on water recycle and reuse by the governments globally.
Over the years, the company has built a complete range of technologies such as membrane-based reverse osmosis and evaporation-based thermal desalination. It has more than 100 intellectual property rights in the water technology space and operates 3 research and development centres.
“While we have built strong capabilities in water space, the technology has also evolved especially in terms of optimising power consumption as well as the cost of membranes. This has brought the cost of desal water projects using reverse osmosis down. Hence an increasing number of people show interest in this nowadays. We have all the technologies required in the water space,” said Rajiv Mittal, MD & Group CEO, VA Tech Wabag.
The company expects the recycle and reuse water projects to be a key growth driver globally, with an estimated market potential of $4 billion. These projects help achieve the twin objective of pollution abatement by requisite wastewater treatment and water security by recycling the available treated water. With successful business models such as HAM (Hybrid Annuity Model), more and more states in India are formulating frameworks.
Also, desalination projects are now seen as affordable, reliable and sustainable alternative sources of water in several places like Chennai (Tamil Nadu). Municipal desalination for supplementing potable water supply is seen as a reliable alternative by governments and other local authorities.
During 2022-26, the municipal desalination market is estimated to grow to $34.8 billion, while the industrial desalination market is pegged at $9.52 billion. “India, the Middle East and North Africa to be the desalination growth drivers over next 5 years,” said Rajneesh Chopra, Global Head Business Development.
“Renowned financial Institutions and green funds all across the globe are looking at the water sector with renewed interest. There is notable allocation under active, proposed and pipeline stages from various global bilateral and multilateral financial institutions to boost sustainable infrastructure,” he added.
Va Tech Wabag carries an order book of more than ₹10,000 crore and it has expanded its global presence with its entry into UAE and Russia this fiscal. It is hopeful of entering more markets in the coming months.
Today, the company produces 26.5 million cubic metres (m3) of clean water, purifies 27 million m3 of wastewater, recycles 2.5 million m3 of wastewater and desalinates 1.2 million m3 of water each day through its more than 1400 plants.