Chennai-headquartered pure-play water technology company VA Tech Wabag is betting big on the West Asian and African markets as these regions have limited freshwater and the only way to meet demand is either by desalinating seawater or reusing water. Industries in these regions are under tremendous pressure to recycle and reuse water generated from operations.
In a performance review in the Annual Report 2018, VA Tech Wabag MD & Group CEO Rajiv Mittal told shareholders that he was extremely optimistic about the West Asian and African markets, and expects that the company’s single designated cluster for these regions will grow multifold in the next couple of years.
“To succeed in this market, we ought to establish our local presence and relationships. Accordingly, in FY18, we strengthened our base by setting up a full-fledged organisation based in the region by bringing on board an experienced senior leader and establishing a local team. It is just a matter of time until the cluster begins executing strategies with full vigour,” Mittal said.
During the last few years, VA Tech Wabag had been more focussed on international markets and industrial projects, especially in the oil and gas (O&G) segment. With projects from Petronas, Dangote (one of the largest players in the O&G sector in the Kingdom of Saudi Arabia) and Reliance, the company’s credentials have grown multifold, he said.
“This segment and the clients are very meticulous and require serious efforts to live up to their expectations, and I am happy that we have been able to do so,” he said.
The company has a presence in India, Southeast Asia, Africa, West Asia, LATAM and Europe, through subsidiaries, associates and joint ventures. It has R&D centres in Switzerland, Austria and India, while its international engineering centres are located in Pune and Vadodara.
VA Tech Wabag had a topline growth of 7.8% to Rs 3,457 crore, an Ebitda growth of 1.6% to Rs 301 crore and a PAT growth of 28.4% to Rs 132 crore in FY18.
