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To be Worth € 1 Billion in Future
VA Tech Wabag, being amongst the world’s leading companies in the water treatment field possesses core competencies of over 80 years in plant building experience. They are also closely involved in the planning, execution and operation of drinking water and wastewater treatment plants. We explore views on growth strategies to be adopted by the company in the years to come through an interview with
Rajiv D. Mittal, CEO & Managing Director, VA TECH WABAG Limited.

What are your views on EPC opportunies in the area of drinking and waste water over the next five years?
The market for EPC companies both in drinking and waste water for the next few years offers exciting opportunities particularly, the Asian Market, that is, both China and India have tremendous scope.

How is the water and wastewater treatment market evolving in India?
The water market in general is still fragmented and over time, it would consolidate. The period 2005 - 2008 has been the fastest period of growth for this segment.

What are the factors contributing to winning business in India in your industry?
Factors contributing to driving business in our industry are improved purchasing power, better standard of living, urbanisation and industrialisation accelerates infra growth. Furthermore, enhanced focus on environmental regulation and its implementation supported by Government Funding. Water is increasingly becoming a scarce resource today.

What are the barriers for EPC players in the water and waste water treatment segment in India?
Getting pre-qualified for the job and To be Worth € 1 Billion in Future VA Tech Wabag, being amongst the world’s leading companies in the water treatment field possesses core competencies of over 80 years in plant building experience. They are also closely involved in the planning, execution and operation of drinking water and wastewater treatment plants. We explore views on growth strategies to be adopted by the company in the years to come through an interview with Rajiv D. Mittal, CEO & Managing Director, VA TECH WABAG Limited.installation references may be barriers for some and we are better off on these two aspects with the existing and emerging markets which contribute to winning business.

What are the various contracting models adopted by the industry to execute water projects globally?
We have already market presence in North Africa - Algeria, Tunisia and Libya and we have also an Operation Management company in Namibia.

Contracting models: Middle East - There are technology companies and construction companies and both enter into a JV company to provide EPC solutions in water management.
China - Design is given by Design Institute in China and the executing company is a Systems Integrator. The risk factors that the companies need to assess before deciding on bid or no bid projects in Africa are local construction experience is of vital importance. Also payment against letter of credit from an international bank needs to be considered.

As an EPC player how much of engineering work is carried out in-house by Wabag?
All engineering work is done in-house by WABAG. Sometimes, detailed civil engineering is outsourced. VA Tech Wabag went public in India in 2010, how has this listing helped the company strengthen its position in the Indian market? The listing helped the company to position ourselves as a long term player in the market and as we have been highlighting, ours is a long term investment destination.

What kind of growth do you see coming from each of the water treatment segments?
Our vision for growth is to become one billion euro company within the next five years. Water reuse and desalination will be the future engines of growth.

Tell us about the major Indian and International projects. The company is currently working on a 100 MLD Nemmeli Desalination project coming up in Chennai with an investment to a tune of 1000 crores in India.
The major international project that the company is currently working on is the Greater Dambulla Water Supply Scheme at Sri Lanka with an investment approximating 360 crores.