I am pleased to present to you the 19th Annual Report of the Company.
The year 2013-14 was a successful year for your Company. The year saw your Company
report its highest ever order intake in its history. The year also witnessed your Company
performing on key parameters across geographies and delivering a good set of numbers yet
again in a year marred by global uncertainties. During the year, your Company expanded its
footprint into two new geographies by winning funded projects in Tanzania in Africa and
Nepal in the Indian subcontinent. The perseverance of the Company in the North African
markets was rewarded during the year in the form of two large industrial water treatment
plant orders in Libya and two more in Tunisia and Eqgypt. Your Company s performance
during the year in emerging markets culminated in winning the distinctive award of
"Water Company of the Year" at the Global Water Summit held in Paris.
Another success story of the year was the performance of the new Multi Domestic Units.
While the Philippines subsidiary bagged the largest STP order in the country and became
one of the leading players in the water and waste water market in Philippines, Turkey
continued to impress with a good order intake, turning positive during the year. The
Company s continued focus and efforts in decentralising operations from a high-cost
economy to low-cost emerging markets resulted in cost efficiency apart from being present
closer to customers. WABAG Switzerland continues to enjoy the highest market share in the
high-end technology market in that country. The Company took a strategic initiative in
China to focus on the upgradation of plants and the supply of high-end technology
business, which will be supported by the Switzerland MDU. The projects being executed by
the other MDUs in Switzerland, Austria, Romania, Czech Republic and Tunisia are all
The Municipal Business Group continued to be the growth engine of your Company. During
the year, this unit won orders from various municipalities across the country. Notable
projects included orders from municipal clients like Chennai Metro Water Supply &
Sewerage Board, Odisha Water Supply & Sewerage Board and Bangalore Water Supply &
Sewerage Board, besides international orders. I am of the opinion that the municipal and
government sectors will continue to remain a key focus area of your Company as several
initiatives are being taken up by various States to ensure efficient water governance. I
also take this opportunity to appreciate the new government on
Structuring an innovative solution
WABAG, Cadagua SA (Spain) and Galfar Engineering and Contracting S.A.O.G. of Oman
formed a joint venture company called International Water Treatment LLC in Oman. The JV is
executing the EPC contract for a sizeable 191 MLD desalination project. This project will
pave the way for potent, strategic growth, showcasing WABAG s ability to work in consortia
with international members and delivering challenging projects across diverse global
Ganga Rejuvenation Scheme. With the creation of a separate Ministry for Water Resources
and Ganga Rejuvenation, the government has set the focus in the right direction, which
augurs well for your Company.
During the year under review the Industrial Water Group business unit continued to
receive repeat orders from its key clients in the Oil and Gas sector. Due to the muted
growth in other key industrial sectors like power, fertilisers and steel, this business
unit took the conscious decision of venturing into foreign markets. The business unit won
maiden orders from key overseas clients in Nigeria. According to a research report
released earlier this year by a leading research house, the industrial sector is expected
to drive growth in the Indian water and wastewater treatment market over the next five
years and I am confident that this business unit possesses the requisite skill set to
provide solutions for the complex water treatment requirements of various industries.
Desalination continues to be a key focus area for the Company. The setting up of WABAG
Spain last year was to tap the global desalination market opportunities including Latam
regions and I am confident that this MDU will drive the desalination growth engine of the
Company in the years to come. The Company s flagship desalination project at Nemmeli,
Chennai, achieved its full capacity production of 100 million litres per day (MLD) during
the year, paving way for the commencement of a seven-year O&M period. The 191 MLD
desalination plant project at Al Ghubra, Oman, is progressing well and is expected to be
completed during the financial year of 2014-15. I am also proud to inform you that
according to Global Water Intelligence, your Company emerged as one of the top ten
Companies in global desalination market during the year.
The Company s Operation and Maintenance Business unit performed creditably during the
year. The Company was able to gather clients in India and abroad. Currently your Company
is operating more than 60 plants in India. Apart from being a high margin business, this
unit provides stability and visibility due to its annuity revenue model. Going forward,
this business unit will be focusing on the lucrative refurbishment and spares business.
Our solid reference base in India proved to be a valuable business development tool in
fuelling our international ambitions, as it demonstrated that we are equally at home
supplying large-scale turnkey treatment plants to customers across geographies. Also our
robust technical background, coupled with competitive costs, positions us as a unique
player in the global market.
An Ernst & Young (E&Y) study says that the Indian water sector could require an
investment of around $130 billion between 2011 and 2030. Wastewater management, in
particular, is emerging as a key thrust area. Currently, only 60% of industrial and 26% of
domestic wastewater is treated in India. Metros and large cities are treating only about
30% while smaller cities treat a minuscule 3.7% of their wastewater. With a pan India
presence, your Company is positioned to take advantage of these growing opportunities in
the country. We expect to sustain our momentum, enhancing value for all our stakeholders
in the years to come.
I would like to thank all our colleagues in India and around the world for their
contribution to WABAG s success. I look forward to their continued support as we strive to
make WABAG even stronger. I also take this opportunity to express my gratitude to all our
stakeholders who have reposed trust in WABAG.