VA Tech Wabag to focus on projects backed by Centre, multilateral agencies

Chennai-based pure play water technology company VA Tech Wabag will focus on projects funded by multilateral agencies and the central government to ensure that projects are not delayed due to lack of resources, as local bodies are prone to financial problems.

The company also plans to ride on digital and advanced technologies in the post-Covid world and bring in artificial intelligence (AI) for water treatment. It may also look at acquisitions in the digital technology space.

Rajiv Mittal, MD & CEO, VA Tech Wabag, told select media persons in a virtual briefing that the company has been treading the path of being a pure play water technology company with a focus on being light on asset. “In every project we will have someone like multilateral agencies or the Centre to invest, and we will have the expertise to execute the project,” he said. He said it is better to opt for projects which will have multilateral lending agencies like World Bank, ADB and JICA.

Mittal said bulk of the expansion of the company going forward will come through organic growth. It will also grow its overseas presence considerably from the current 35 geographies, and going forward the revenue from abroad may surpass the Indian earnings. The company would look at inorganic growth or acquisitions only if there is a compelling case.

“As we are looking to grow a digital footprint, we may consider some buyout in the digital technology space,” he said. The company is adequately capitalised after recently raising Rs 120 crore through a preferential issue.

On the opportunities post-Covid, Mittal said to tackle water-related challenges, Wabag has been successful in pioneering removal of micro pollutants and has also licensed and worked upon the Nereda technology, which will play a significant role in wastewater treatment in future. The focus on water crisis, conservation and the governments’ spending through various schemes and policies to meet the ever-growing demand for water presents a huge opportunity for future business.

The company has state-of-the-art research and development centres that have developed advanced technologies to treat wastewater to directly be used as water of potable grade, he said.

Wabag currently holds its highest-ever order book of Rs 11,050 crore, which includes mega projects under the National Mission for Clean Ganga Scheme to develop sewage treatment plants of 150 MLD capacity along with a sewerage network of over 450 km, and the Atal Mission for Rejuvenation and Urban Transformation scheme to set up a 178-MLD drinking water treatment plant in Coimbatore. The company has also secured a $48-million contract for a sewage treatment plant at New Jeddah Airport, Kingdom of Saudi Arabia.