Chennai-based VA Tech Wabag has said it aims to secure a place among the world’s top three water technology companies in terms of business valuation. The Rakesh Junjhunwala-backed company’s growth strategy is to capture most of the opportunities from India, West Asia, Asean, North Africa, and central Europe regions, to move towards this target.
Malay Mukherjee, chairman, VA Tech Wabag, said in a letter to shareholders, in the Annual Report 2021, that the growth strategy includes implementing global matrix organisation with strong business processes, organising the company using a global delivery model, investing and strengthening its go-to-market teams and building construction, technology and financial partnerships.
He said the company strives to pursue high-quality projects and provide tailored solutions for customers in the core regions while keeping track of attractive spot opportunities elsewhere. “Today, we are capable and equipped to compete successfully by providing advanced technology and cost effective total water solutions across geographies. As we step into the future, we continue looking forward to multi-lateral and central and federal government-funded projects for enhancing stakeholders’ wealth,” he said.
Rajiv Mittal, MD, VA Tech Wabag said the company will continue to maintain the fourfold focus in its long-term strategy by concentrating on emerging markets, asset-light business, technology while serving as a pure-play water player.
He said the Centre’s plan to supply 55 litres per day per person in the rural belts would lead to a huge surge in demand and eventually create ample opportunities for the company. Wabag, being a technology player, will play its role in recycling water to supplement this demand, build desalination plants in coastal areas and transport water from long distance areas where freshwater is available for treating and pumping. These are the areas that would require technological intervention.
“Wabag has achieved reasonable success in Namami Gange programme under the National Mission for Clean Ganga (NMCG) in executing projects in almost every state through which the river Ganga flows. The Namami Gange mission has led the government to rethink its strategy for 33 more rivers, which are now covered under the National River Conservation Directorate (NRCD),” he said.
According to him, the oil & gas sector is again picking up, there are more refineries and petrochemicals coming up and the company’s chances of getting more business are increasing.
Regarding ‘One City One Operator’ scheme, Mittal said there are a few more states in India, apart from Uttar Pradesh, where this opportunity is emerging and the company is likely to be a strong contender for the same. “These opportunities will act as a major growth enabler in operation & maintenance (O&M) business. Of our total portfolio, the O&M contributes 15% and we aspire to take this to 20-25%, going forward,” he added.