India-based Va Tech Wabag, a leading pure-play water technology player, aims to capitalise on the growth potential of the water technology sector, informs The Hindu BusinessLine. The company believes its technology, backed by strong R&D, together with its excellence in project execution, will help take advantage of substantial business opportunities in the next years, with a mature funding landscape and increased focus on water recycle and reuse.
With more than 100 intellectual property rights in water technology and three R&D centres, Va Tech Wabag has built a range of technologies that include reverse osmosis and evaporation-based thermal desalination. Rajiv Mittal, MD and CEO of the Group, said: “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.”
The company expects strong water sector growth on a global scale, driven by water recycle and reuse projects, with an estimated market potential of $4 billion. Indian states are adopting business models such as the Hybrid Annuity Model to undertake these projects, in order to address pollution though wastewater treatment, as well as increase water security by recycling treated water. Authorities are also increasingly looking at desalination as an affordable, reliable and sustainable water source to supplement the drinking water supply, in cities such as Chennai.
Growth in the municipal desalination market for 2022-26 is projected to reach $34.8 billion, with another $9.52 billion in the industrial desalination market. Most growth is expected in India, the Middle East and North Africa, according to 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 said.
Va Tech Wabagm, with an order book that exceeds ₹10,000 crore (about $1.3 billion), has expanded its international presence in the UAE and Russia this fiscal year, and is looking forward to enter additional markets in the short term.