Chennai-headquartered pure-play water technology company VA Tech Wabag is betting big on desalination projects across the globe and it sees growth potential in markets like India, North Africa and West Asia —especially in Saudi Arabia and Egypt — over the next five years.
The company said that it is fully prepared to leverage the opportunities in these markets as it has technological expertise in the field. It also said that the company is focusing on increasing the share of international contracts in its order book to 60% from the current 50%.
Addressing select mediapersons over a virtual press meet, Rajiv Mittal, MD & group CEO, VA Tech Wabag, said that there is going to be a tilt towards overseas projects in the near future. Currently, overseas contracts account for 50% of the order book and it is likely to go up to 60%.
Wabag has forayed into two new geographies this financial year, securing a high technology industrial order in Russia and a large scale desalination project in UAE. The company is exploring market opportunities in Latin America. It has an order book to the tune of `10,000 crore-plus and it operates on an asset-light model where in it ties up with multilateral funding agencies, for the financial closure of the projects.
On the overall business prospectus, he said with the water sector in India securing an allocation that has never been witnessed in the history of Independent India, water sector clearly emerges as a top priority in the country. Similar trend has been observed globally, which will help unlock a huge potential in the global water market. “Wabag, with its technical expertise & execution excellence emerges as a preferred partner for governments, municipalities, ULBs and industries globally,” he said.
Rajneesh Chopra, global head business development, Wabag, said, “We believe desalination and recycle & reuse to be the key growth drivers to ensure water security globally, with an estimated market potential of over $40 billion. With a vast array of technological solutions which includes 100 plus IP Rights and three R&D centres, Wabag is well placed to capitalise on the next growth wave in the water sector.”