About
Va Tech Wabag Ltd
VA Tech Wabag Ltd is a multinational player in the water treatment industry. The company offers complete life cycle solutions including conceptualization, design, engineering, procurement, supply, installation, construction and O&M services. They provide a range of EPC and O&M solutions for sewage treatment, processed and drinking water treatment, effluents treatment, sludge treatment, desalination and reuse for institutional clients like municipal corporations and companies in the infrastructure sector such as power, steel and oil and gas companies.
The company is having their market presence in India, the Middle East, North Africa, Central and Eastern Europe, China and South East Asia through their principal offices in India, Austria, the Czech Republic, China, Switzerland, Algeria, Romania, Tunisia, UAE, Libya and Macao. They divide their business into four strategic business units namely Municipal Business Group, Industrial Water Business Group, Operations Business Group and International Business Group.
WABAG, over the years has expanded its global reach through Overseas Direct Investments (ODI), either through subsidiaries, joint venture or associate companies. The company has 18 subsidiaries, 3 associates and a joint venture entity as on March 31, 2018. The company is having their R & D centres located in Chennai, India and at Vienna and Winterthur in Austria and Switzerland respectively.
VA Tech Wabag Ltd was incorporated on February 17, 1995 as Balcke Durr Cooling Towers Ltd. The company was awarded the certificate of commencement of business on March 8, 1995. Initially, the company involved in the business of design and construction of cooling towers and was a subsidiary of Balcke-Durr Aktiengesellschaft, a German company which was held by Deutsche Babcock.
In the year 1996, the company started a water treatment division and pursuant to this, they changed their name from Balcke Durr Cooling Towers Ltd to Balcke Durr and Wabag Technologies Ltd. In April 1997, the company undertook first EPC order from Reliance Petroleum.
In April 1999, the Austrian group VA Tech acquired the water business of Deutsche Babcock operating under the Wabag brand name. In India, the water and non water divisions of the company were de-merged and the non-water division was transferred to BDT Ltd. Consequently, the name of the company was changed to VA Tech Wabag Ltd. Pursuant to the de-merger and change of name, the company's primary business was changed to design, supply, construction and erection of water, wastewater treatment plants and operation and maintenance of the same.
In March 2000, the company entered into municipal segment by received their fist municipal order from Chennai Metropolitan Water Supply and Sewerage Board. In September 2000, they received the ISO 9001:2000 Certification from Lloyd's Register Quality Assurance.
In July 2002, the company started their O&M activity and they received their first O&M order from Chennai Metropolitan Water Supply and Sewerage Board. In September 2002, they received an order worth Rs 7000 lakh from Bangalore Water Supply and Sewerage Board.
In September 2005, I-Ven Water Treatment Technologies Ltd acquired a majority stake in the company. In April 2006, as per the scheme of merger, I-Ven Water Treatment Technologies Ltd was amalgamated with the company.
In August 2006, the majority shareholding of the company was acquired by Rajiv Mittal, Amit Sengupta, Shiv Narayan Saraf and S Varadarajan together with ICICI Venture Funds Management Company Ltd. In September 2006, the company received an order worth approximately Rs 18,638 lakh from Kerala Water Authority.
In April 2007, the company created the four SBUs, namely municipal, industrial, international and operations business group. In August 2007, they incorporated Wabag Singapore. In September 2007, the company received their first overseas O&M order from Qatar. In October 2007, they completed the construction of a plant water systems package for Durgapur Projects Ltd.
In November 6, 2007, the company through their wholly owned subsidiary Wabag Singapore acquired the entire shareholding of Wabag Austria. Pursuant to this acquisition, Wabag Austria and their subsidiaries became the subsidiary companies. In December 6, 2007, the company in association with Badriya Hassan Makki incorporated a joint venture company now called VA Tech Wabag (Gulf) Contracting LLC, in which the company holds a 49% shareholding.
In February 2008, the company incorporated Wabag Water Services s.r.l, in Romania. In March 2008, they received their first overseas EPC order from Oman. In May 2008, they started International Engineering Centre in Pune. Also, they opened a branch office in Oman. In June 2008, they received order worth Rs 19,071 lakh from Delhi Jal Board.
In May 2009, the company incorporated VA Tech Wabag (Hong Kong) Ltd. Also, they received ISO-9001:2008 Certification from Bureau Veritas. In December 2009, they received order worth Rs 103,368 lakh order for seawater desalination plant from Chennai Metropolitan Water Supply and Sewerage Board.
In December 21, 2009, the company through their subsidiary, VA Tech Wabag (Hong Kong) Ltd, incorporated a subsidiary called Beijing VA Tech Wabag Water Treatment Technology Co Ltd, in which VA Tech Wabag (Hong Kong) Ltd has a 100% shareholding.
The company completed the Perungudi plant on a DBO basis where they constructed a plant with a capacity of 54 MLD and have an O&M contract for a period of 10 years. They also completed execution of a 455 MLD water treatment plant at Panjrapur for the Brihanmumbai Municipal Corporation.
The company was awarded the contract for a seawater reverse osmosis desalination plant with a capacity of 1,00,000 m3/d in Chennai including an O&M contract for seven years.
During FY 2013-14, the Company received orders for its Industrial Water Group (IWG) from international petrochemical and fertilizer industry. It executed projects involving complex processes like boron removal, a first-of-its-kind treatment in India. The Swiss office of WABAG implemented about 36 projects in CADISON; the International Engineering Centre (Pune) and the MBG in Chennai have successfully completed the pilot project. In order to bring uniformity in the software usage the Company adopted the CADISON platform for engineering during the financial year. WABAG has further developed the direct application of Powdered Activated Carbon (PAC) onto ultra-filtration membranes and the partial PAC recovery.
During FY 2014-15, WABAG entered into a technology tie up with Royal Haskoning DHV for the introduction of state-of-the-art Nereda Technology in India, apart from Switzerland to meet the growing market expectations.
During year 2015-16, Malaysia's National Oil and Gas company, Petroliam Nasional Berhad (PETRONAS) signed a contract with VA Tech Wabag Limited and Muhibbah Engineering (M) Bhd for the ReFEED and Engineering, Procurement, Construction and Commissioning of the Effluent Treatment Plant (ETP).
During the FY 2016-17, WABAG undertook promotion of projects with better technologies for reducing plant life-cycle costs. It further successfully completed Reliance Industries' Hazira Effluent Treatment Plant (first ever plant for treating petrochemical cocktail effluent) and JSPL's Angul Effluent Treatment Plant (first ever gasification effluent plant having 80% recovery).
The LATAM cluster of the Company focuses on the countries of Ecuador, Brazil, Chile, Peru, Uruguay, Mexico, Colombia and Argentina. The major focus in FY 2016-17 was to bring Centralization of infrastructure services and Global ERP upgrade.
During FY 2017-18, the company further continued to extend engineering support to its global offices in Austria and Romania.
With regard to Information Technology initiatives, the company primarily focused on adopting various digital initiatives and undertaking technology restructure of the Global ERP upgrade. Digitization and analytics have created lot of interest across WABAG global offices.
During the year 2018, the Company incorporated a subsidiary viz., M/s VA TECH WABAG BRAZIL SERVICOS DE AGUA E SANEAMENTO LTDA in the country of Brazil.
As of March 2018, the total funded financial investments of your Company through equity contribution in such ODIs amounted to Rs 25 Crore, which represents 6% of total financial commitment and the total non-funded financial investments in the form of guarantees through ODI route amounted to Rs 381.24 Crore which represents 93% of total financial commitment.
During the year 2018, the Company earned a dividend income of Rs 20 Crore from its overseas investment.
During the year, as part of business restructuring, expansion and other plans in Europe, LATAM and MEA clusters, some of the steps initiated by the Company were:1. It formed a Branch in Argentina and Dubai and a subsidiary entity in Brazil.2. As part of restructuring plan of European cluster, the shares held by German subsidiary in other group entities, have been restructured/transferred within other group entities. Pursuant to such action, the minority stake held by German subsidiary in Romanian subsidiary has been acquired by its holding company viz., VA Tech Wabag GmbH, Austria (Austria subsidiary). As at March 31, 2018, 99.97% shares of Romanian entity were held by Austria.3. Pursuant to the completion and commissioning of the Desalination Project by Company's Joint venture entity viz., International Water Treatment LLC (IWT), Muscat, Oman in the year 2016, the project is presently under Defect Liability Period (DLP). Upon completion of the DLP, the Company will initiate necessary action along with other JV partners for closure of the entity. During the year, there are no further payments made by the Company to IWT.
Va Tech Wabag Ltd
Chairman Speech
Communique
WABAG, through its responsible and sustainable practices, remains a
front-runner in the mission to ensure global water security and a greener, water-positive
world, in line with India's G20 Presidency theme of ‘Vasudhaiva Kutumbakam - One
Earth, One Family, One Future', signifying environmentally sustainable and
responsible choices towards a cleaner, greener, and bluer future.
Dear Shareholders and Stakeholders,
It is with great pleasure that we present to you our annual report for
the FY 2022-23, another milestone year in our long legacy.
Over the past year, we have navigated through a dynamic and
ever-evolving business landscape,marked by global economic shifts, technological
advancements, and changing customer preferences. Despite these challenges, I am proud to
announce that your Company has achieved significant milestones and maintained its position
as a global leader in the water treatment sector. Our unwavering commitment to excellence,
innovation, sustainability and customer satisfaction has been the cornerstones of our
success. Through the collective efforts of our dedicated human capital, our value chain
partners, bankers and all other stakeholders,we have successfully progressed on our
strategic initiatives and delivered exceptional results.
The Global Environment
Globally, climate change and sustainability have become prime
priorities, leading to countries and industries taking actions to reduce carbon footprint,
build water security, and protect bio-diversity to promote a sustainable future for the
Planet. From the water point of view, a global water security assessment led by the United
Nations' water experts found that the majority of the world's population
currently live in water-insecure countries. This is a cause for major concern because
water security is fundamental to development. The global assessment released during the UN
2023 Water Conference provides an analysis of the state of water security affecting 7.8
Billion people across 186 countries midway through the Water Action Decade (2018-2028) and
the 2030 Agenda for Sustainable Development. The report provides some very alarming
statistics, arguing that the world is far from achieving ‘clean water and sanitation
for all' known as Sustainable Development Goal (SDG) 6.
The Water Treatment Sector Outlook
Water is essential to life and growth. Rivers have been the bedrocks of
civilisational development. With the growing industrialisation and speedy urbanisation,
there has been an increasing need for Water availability, both for economic progress and
consumption. However, centuries of water withdrawal, coupled with population growth has
depleted quantity and quality of surface and ground water, making it imperative that, Water
is too precious a resource, to be used only once. Water treatment has assumed
increased importance with its need growing every day considering the state-of-affairs
regarding water availability. The water treatment industry is vital for public health,
environmental sustainability, and economic development. However, the industry faces
several challenges:
Aging Infrastructure: Many water treatment facilities worldwide
are aging and require upgrades or replacements to ensure efficient and reliable operation.
Population Growth and Urbanisation: Increasing population and
urbanisation create higher demand for clean and safe water, putting pressure on
existing water resources and treatment infrastructure.
Emerging Contaminants: The industry must adapt to address
emerging contaminants, such as pharmaceuticals, micro plastics, and chemical pollutants,
which pose new challenges for treatment processes.
Climate Change: Changing weather patterns, including droughts
and floods, affect water availability and quality, necessitating adaptive strategies and
resilient infrastructure.
Energy Consumption and Sustainability: Some water treatment
processes are energy-intensive, and the industry is striving to reduce energy consumption
and explore sustainable alternatives to minimise environmental impact.
Affordability and Access: Ensuring access to clean water for all
populations, including marginalised communities, remains a global challenge. Balancing
affordability with maintaining high treatment standards is a critical consideration.
Overall, the water treatment industry plays a vital role in maintaining
the availability and quality of clean water resources. Continued innovation, investment in
infrastructure, and collaboration among stakeholders are essential to address the
challenges and ensure sustainable water management for the future.
Focus and Outlook of a Transforming Global Water Sector
Below is an illustrative list of a few key water schemes and policies
changing the face of the global water sector.
India
Water Making an Impact: The Indian Government's initiatives
in the water sector, including ‘Namami Gange', ‘Jal Jeevan Mission',
‘Swachh Bharat', ‘AMRUT', present a fertile landscape of opportunities
for WABAG to thrive and make a lasting impact.
Recycle and Reuse: In India, ‘Recycle and Reuse' has
been a focus at state as well as national level. Five states in India – Tamil Nadu,
Karnataka, Maharashtra, Haryana and Gujarat – have come up with a state-level reuse
policy, aiming at 70% reuse of treated wastewater by 2030 and ultimately at 100% reuse. A
national level policy for safe reuse of treated water is also under consideration, which
sets out the guidelines for the adoption and implementation of recycle and reuse. The
‘Namami Gange' released National Framework on Safe Reuse of Treated Water in
November 2022.
The Government of India mandated all thermal power plants to use the
treated sewage water from sewage treatment plants (STPs), situated within 50 kms radius
for non-potable purposes.
Desalination: The Central Government and NITI Aayog are drawing
up a road map for setting up commercially viable desalination plants across the
country's coastline in line with its target of supplying clean piped water to every
household.
Middle East and Africa
Government of Saudi Arabia allocated USD 28 Billion to support new
waste water projects. In view of Vision 2030, wastewater reuse is seeing significant
interest in Saudi Arabia, with a target of recycling 35% of the country's used water
by 2030.
Egypt's strategy for setting up large-scale desalination plants in
conjunction with renewable energy. 21 projects are planned for 3,300 MLD with USD 3
Billion investment. Urban, Rural & Climate resilience programmes in Africa are set to
drive opportunities and funding for the sector through multi-lateral and bi-lateral
funding agencies.
Europe
The EU is planning to overhaul contaminant and nutrient removal
standards in Europe in a revision to the Urban Waste Water Treatment Directive (UWWTD),
with over USD 4 Billion a year of Capex & Opex by 2040.
WABAG's Role in Ensuring Global Water Security and the Year in
Review Marching towards a Century of Water Leadership
I'm extremely elated to also share with you all that our beloved
brand ‘WABAG' is reaching its 100th anniversary in 2024. It is with great pride
and gratitude that I address you on this historic milestone, reflecting on a century of
achievements, resilience, and unwavering commitment to excellence.
From humble beginnings to a global presence, our brand has journeyed
through decades of challenges and successes, leaving an indelible mark on the societies
and industries we serve and the lives we touch. Our enduring success is a testament to the
vision and values upon which this company is built — sustainable solutions, for a
better life. Through economic downturns, technological revolutions, and societal
transformations, we have remained steadfast in our dedication to delivering the quality
services that inspire trust and loyalty.
Our brand is synonymous with reliability, technology and cutting-edge
solutions. We have embraced innovation, constantly pushing the boundaries of what is
possible to stay ahead of the curve. Through breakthrough technologies, constant research,
and a passionate team of experts, we have consistently set new standards in water
treatment.
But, our success would not have been possible without the support and
trust of our customers and value chain partners who have driven us to strive for
excellence and continuously improve. As we embark on the next century, we do so with a
renewed sense of purpose and excitement. We are committed to building upon our legacy,
leveraging our expertise to tackle emerging challenges, and embracing opportunities that
lie ahead. Our focus remains on delivering exceptional value, driving innovation, and
making a positive impact on the world around us.
This milestone is also an opportunity to reflect on our responsibility
as a corporate citizen. As a brand that has thrived for a century, we are aware of the
importance of sustainability and social responsibility. We will continue to prioritise
environmental stewardship, ethical practices, and community engagement to create a
brighter future for generations to come.
The Year in Review
This year has been a landmark in the history of WABAG, highlighting a
momentous milestone that fortified our strength and resilience as a company. We are
extremely proud that WABAG has been ranked 3rd globally, by Global Water
Intelligence (GWI), London, for ensuring safe and clean drinking water and sanitation for
88.8 Million people across the globe, validating our organisational commitment to the
United Nations SDG-6, which aims to ensure clean water and sanitation for all by 2030.
We are extremely elated that WABAG has ascended to global acclaim,
securing a prestigious 6th position among global desalination players in the
illustrious annual survey conducted by GWI for FY 2021-22. This achievement cements our
position as consistently being one among the top 10 global desalination players in the
fiercely competitive and technologically advanced industry, bestowing global recognition
and further igniting our passion for protecting the environment.
As we embark upon this annual report, I invite you to witness
first-hand the culmination of our collective efforts and the transformative impact we
continue to create as we protect the environment and power the economy.
Another Successful Year of Profitable Growth and Positive Cash
I am delighted to announce WABAG's remarkable performance for FY
2022-23. Despite economic challenges, we achieved a historic milestone by securing the
highest-ever order book of over INR 132 Billion, providing us a robust and reliable
revenue visibility for the next few years.
Also, a vibrant order pipeline provides a strong outlook for the years
to come to continue delivering Profitable Growth. We continued our Profitable Growth
journey delivering a consolidated total income of INR 30 Billion with a consolidated
EBITDA of INR 3.5 Billion, up year-on-year by ~43% and delivered another year of positive
operational cash flow generation of INR 850 Million on consolidated basis, and free cash
flow of INR 861 Million.The Group continued its turnaround from net debt to net cash
of INR 1,007 Million, achieving net cash positive position for the third consecutive year.
Our Debt Management focus also ensured a significant reduction in gross
debt year-on-year from INR 4.3 Billion to INR 2.1 Billion. Net working capital remained in
control at 78 days. Your Company also received a Credit Rating
Upgrade to A1+ during this financial year, re-affirming strong
business fundamentals and a positive growth outlook.
Operational
I am thrilled to share that we achieved our highest-ever order book to
date, valued over INR 13,200 Crore. Aligned with our strategic vision, we actively pursue
projects funded by Central / Federal Government schemes and multi-lateral agencies. I am
delighted to inform you that we are expanding our services to new locations and securing
orders from both our strategic markets and core sectors. Notably, our most substantial
orders, such as DBO order to build South East Asia's largest Sea Water Desalination
Plant for CMWSSB at Chennai funded by JICA and DBO order for Reconstruction, Expansion and
Operation of Pagla STP at Dhaka, Bangladesh for Dhaka WASA funded by World Bank &
AIIB,exemplify the global collaboration and growth we are experiencing. The robust quality
of orders is a testimony to the trust that our clients, globally, have placed in us to
deliver technologically advanced, large, and complex projects.
Clean and Green
Green solutions in the water sector encompass environmentally friendly
and sustainable practices that focus on preserving and safeguarding water resources and
environment. WABAG leads the way in transforming the sector towards a more environmentally
conscious future by reducing greenhouse gas emissions and total resource recovery through
our innovative and sustainable solutions.
We promote the efficient utilisation of recycled water, harness green
energy to power our plants, extract NPK-rich fertilisers from sludge, and thereby actively
contribute to the circular economy.
Looking and Leaping ahead Our Business Strategy for the Future -
(Wriddhi)
Wriddhi denotes and focusses towards Profitable Growth, Success &
advancement, Global Market Leadership, Free Cash Generation, Quantum Leap, Improved
Valuation. The following are the corner stones of ‘Strategy - Wriddhi': Implementing
an Efficient Global Delivery Model:
Breaking entity delivery structures and developing global
competence-based delivery structures which can cater to a multitude of projects across the
globe;
Brings efficiencies and economies of scale along with specialisation
and focus on delivery on time, cost and quality which is the heart of the project
organisation. Remaining focussed on Engineering Procurement, International and
Industrial Sectors: Initiating advanced technology jobs with better margins, reduced
construction scope resulting in better cash-flows and guarantee limit utilisation;
Internationalfocustohavegeo-diversification.
Building Highly Capable Go-to-Market Teams with an Array of
Partnerships in Core Regions: Focussing on marketing and development of jobs rather
than tendered jobs; Focus on jobs in high technology (Desal, Reuse, Oil & Gas, ZLD,
Total Resource Recovery, Industrial) at good margin profiles with payment security
(Multilateral, Federal Government, LC-backed, Sovereign funding).
Establishing Technology, Construction Partnerships for the Business and
Financial Partnerships for BOOT/HAM Projects while Remaining Asset-Light: Technology
partnerships to license technology wherever needed to remain ahead of competition in
addition to internal R&D efforts; Construction partnerships to improve EP share as
construction is a pass through in the business better margins and cash-flows; Financial
Partnerships to remain asset-light, while pursuing the asset heavy BOOT
/ HAM business; Partnerships on the three counts ensure that WABAG remains a ‘Full
range service provider in the water treatment sector'.
Focus on O&M: Staying close to the customer, ability to
understand customer needs better and faster; Annuity business with better margins and
predictability of revenues and cash flows; Repeat business generator;
Asset-light and high ROCE business segment.
Continued Focus on Sustainability
At the heart of our endeavours lies our commitment to ESG and
Sustainability principles, propelling us to excel across every facet of our operations and
surmount challenges with resilience. By prioritising environmental stewardship, social
support, and ethical practices, we not only foster a positive reputation but also actively
contribute to creating a sustainable future. Our dedication to innovation, as demonstrated
by our pioneering advancements in wastewater conversion into valuable water resources,
while embracing sustainability and circular economy principles, positions us for a
formidable foundation of sustained success.
Creating a system of sustainability balances the activities cohesively
and collaboratively with the resource and the environment. We are committed to remain a
Water Positive Company to achieve long-term objectives aligning with the United Nations
Sustainability Goals.
Big Picture
‘Vasudhaiva Kutumbakam', inspired from Maha Upanishad,
translates to ‘One Earth, One Family, One Future', - the theme of India's
G20 Presidency which fundamentally highlights the importance of all life as well as their
interdependence on Earth and across the universe. The theme also exemplifies LiFE
(Lifestyle for Environment), which highlights the importance of environmentally
sustainable and responsible lifestyle choices, both at the individual and national level,
in creating a cleaner, greener, and bluer future.
WABAG through its responsible and sustainable practices remains a
front-runner in the mission to ensure global water security and ensuring a green and
water-positive world. Promoting circular economy, clean water from desalination, green
energy from bio-gas, safe drinking water and responsible wastewater treatment over 99
years remain the hallmark of brand WABAG, as we accelerate our contributions in line with
India's G20 commitment towards a cleaner, greener, and bluer
future for the entire planet.
Closing Note
I extend my sincere appreciation to the esteemed members of our Board
and the entire team at WABAG. It is their dedication and commitment through all the ups
and downs which has helped us traverse this far. Together, we have overcome challenges,
celebrated victories, and forged a path towards success. I would also like to express my
heartfelt gratitude to our valued stakeholders for their support and cooperation. Your
partnership has been instrumental in propelling us towards our shared goals, and I am
truly grateful for the trust you have placed in us.
Thanking all for being an integral part of our journey.
  Â
Va Tech Wabag Ltd
Company History
VA Tech Wabag Ltd is a multinational player in the water treatment industry. The company offers complete life cycle solutions including conceptualization, design, engineering, procurement, supply, installation, construction and O&M services. They provide a range of EPC and O&M solutions for sewage treatment, processed and drinking water treatment, effluents treatment, sludge treatment, desalination and reuse for institutional clients like municipal corporations and companies in the infrastructure sector such as power, steel and oil and gas companies.
The company is having their market presence in India, the Middle East, North Africa, Central and Eastern Europe, China and South East Asia through their principal offices in India, Austria, the Czech Republic, China, Switzerland, Algeria, Romania, Tunisia, UAE, Libya and Macao. They divide their business into four strategic business units namely Municipal Business Group, Industrial Water Business Group, Operations Business Group and International Business Group.
WABAG, over the years has expanded its global reach through Overseas Direct Investments (ODI), either through subsidiaries, joint venture or associate companies. The company has 18 subsidiaries, 3 associates and a joint venture entity as on March 31, 2018. The company is having their R & D centres located in Chennai, India and at Vienna and Winterthur in Austria and Switzerland respectively.
VA Tech Wabag Ltd was incorporated on February 17, 1995 as Balcke Durr Cooling Towers Ltd. The company was awarded the certificate of commencement of business on March 8, 1995. Initially, the company involved in the business of design and construction of cooling towers and was a subsidiary of Balcke-Durr Aktiengesellschaft, a German company which was held by Deutsche Babcock.
In the year 1996, the company started a water treatment division and pursuant to this, they changed their name from Balcke Durr Cooling Towers Ltd to Balcke Durr and Wabag Technologies Ltd. In April 1997, the company undertook first EPC order from Reliance Petroleum.
In April 1999, the Austrian group VA Tech acquired the water business of Deutsche Babcock operating under the Wabag brand name. In India, the water and non water divisions of the company were de-merged and the non-water division was transferred to BDT Ltd. Consequently, the name of the company was changed to VA Tech Wabag Ltd. Pursuant to the de-merger and change of name, the company's primary business was changed to design, supply, construction and erection of water, wastewater treatment plants and operation and maintenance of the same.
In March 2000, the company entered into municipal segment by received their fist municipal order from Chennai Metropolitan Water Supply and Sewerage Board. In September 2000, they received the ISO 9001:2000 Certification from Lloyd's Register Quality Assurance.
In July 2002, the company started their O&M activity and they received their first O&M order from Chennai Metropolitan Water Supply and Sewerage Board. In September 2002, they received an order worth Rs 7000 lakh from Bangalore Water Supply and Sewerage Board.
In September 2005, I-Ven Water Treatment Technologies Ltd acquired a majority stake in the company. In April 2006, as per the scheme of merger, I-Ven Water Treatment Technologies Ltd was amalgamated with the company.
In August 2006, the majority shareholding of the company was acquired by Rajiv Mittal, Amit Sengupta, Shiv Narayan Saraf and S Varadarajan together with ICICI Venture Funds Management Company Ltd. In September 2006, the company received an order worth approximately Rs 18,638 lakh from Kerala Water Authority.
In April 2007, the company created the four SBUs, namely municipal, industrial, international and operations business group. In August 2007, they incorporated Wabag Singapore. In September 2007, the company received their first overseas O&M order from Qatar. In October 2007, they completed the construction of a plant water systems package for Durgapur Projects Ltd.
In November 6, 2007, the company through their wholly owned subsidiary Wabag Singapore acquired the entire shareholding of Wabag Austria. Pursuant to this acquisition, Wabag Austria and their subsidiaries became the subsidiary companies. In December 6, 2007, the company in association with Badriya Hassan Makki incorporated a joint venture company now called VA Tech Wabag (Gulf) Contracting LLC, in which the company holds a 49% shareholding.
In February 2008, the company incorporated Wabag Water Services s.r.l, in Romania. In March 2008, they received their first overseas EPC order from Oman. In May 2008, they started International Engineering Centre in Pune. Also, they opened a branch office in Oman. In June 2008, they received order worth Rs 19,071 lakh from Delhi Jal Board.
In May 2009, the company incorporated VA Tech Wabag (Hong Kong) Ltd. Also, they received ISO-9001:2008 Certification from Bureau Veritas. In December 2009, they received order worth Rs 103,368 lakh order for seawater desalination plant from Chennai Metropolitan Water Supply and Sewerage Board.
In December 21, 2009, the company through their subsidiary, VA Tech Wabag (Hong Kong) Ltd, incorporated a subsidiary called Beijing VA Tech Wabag Water Treatment Technology Co Ltd, in which VA Tech Wabag (Hong Kong) Ltd has a 100% shareholding.
The company completed the Perungudi plant on a DBO basis where they constructed a plant with a capacity of 54 MLD and have an O&M contract for a period of 10 years. They also completed execution of a 455 MLD water treatment plant at Panjrapur for the Brihanmumbai Municipal Corporation.
The company was awarded the contract for a seawater reverse osmosis desalination plant with a capacity of 1,00,000 m3/d in Chennai including an O&M contract for seven years.
During FY 2013-14, the Company received orders for its Industrial Water Group (IWG) from international petrochemical and fertilizer industry. It executed projects involving complex processes like boron removal, a first-of-its-kind treatment in India. The Swiss office of WABAG implemented about 36 projects in CADISON; the International Engineering Centre (Pune) and the MBG in Chennai have successfully completed the pilot project. In order to bring uniformity in the software usage the Company adopted the CADISON platform for engineering during the financial year. WABAG has further developed the direct application of Powdered Activated Carbon (PAC) onto ultra-filtration membranes and the partial PAC recovery.
During FY 2014-15, WABAG entered into a technology tie up with Royal Haskoning DHV for the introduction of state-of-the-art Nereda Technology in India, apart from Switzerland to meet the growing market expectations.
During year 2015-16, Malaysia's National Oil and Gas company, Petroliam Nasional Berhad (PETRONAS) signed a contract with VA Tech Wabag Limited and Muhibbah Engineering (M) Bhd for the ReFEED and Engineering, Procurement, Construction and Commissioning of the Effluent Treatment Plant (ETP).
During the FY 2016-17, WABAG undertook promotion of projects with better technologies for reducing plant life-cycle costs. It further successfully completed Reliance Industries' Hazira Effluent Treatment Plant (first ever plant for treating petrochemical cocktail effluent) and JSPL's Angul Effluent Treatment Plant (first ever gasification effluent plant having 80% recovery).
The LATAM cluster of the Company focuses on the countries of Ecuador, Brazil, Chile, Peru, Uruguay, Mexico, Colombia and Argentina. The major focus in FY 2016-17 was to bring Centralization of infrastructure services and Global ERP upgrade.
During FY 2017-18, the company further continued to extend engineering support to its global offices in Austria and Romania.
With regard to Information Technology initiatives, the company primarily focused on adopting various digital initiatives and undertaking technology restructure of the Global ERP upgrade. Digitization and analytics have created lot of interest across WABAG global offices.
During the year 2018, the Company incorporated a subsidiary viz., M/s VA TECH WABAG BRAZIL SERVICOS DE AGUA E SANEAMENTO LTDA in the country of Brazil.
As of March 2018, the total funded financial investments of your Company through equity contribution in such ODIs amounted to Rs 25 Crore, which represents 6% of total financial commitment and the total non-funded financial investments in the form of guarantees through ODI route amounted to Rs 381.24 Crore which represents 93% of total financial commitment.
During the year 2018, the Company earned a dividend income of Rs 20 Crore from its overseas investment.
During the year, as part of business restructuring, expansion and other plans in Europe, LATAM and MEA clusters, some of the steps initiated by the Company were:1. It formed a Branch in Argentina and Dubai and a subsidiary entity in Brazil.2. As part of restructuring plan of European cluster, the shares held by German subsidiary in other group entities, have been restructured/transferred within other group entities. Pursuant to such action, the minority stake held by German subsidiary in Romanian subsidiary has been acquired by its holding company viz., VA Tech Wabag GmbH, Austria (Austria subsidiary). As at March 31, 2018, 99.97% shares of Romanian entity were held by Austria.3. Pursuant to the completion and commissioning of the Desalination Project by Company's Joint venture entity viz., International Water Treatment LLC (IWT), Muscat, Oman in the year 2016, the project is presently under Defect Liability Period (DLP). Upon completion of the DLP, the Company will initiate necessary action along with other JV partners for closure of the entity. During the year, there are no further payments made by the Company to IWT.