Prime Highlights
- VA Tech Wabag won two large BWSSB wastewater treatment projects in Bengaluru.
- The company will build, operate and maintain the facilities for seven years.
Key Facts
- VA Tech Wabag is a Chennai-based water treatment and infrastructure company.
- The BWSSB projects include 160 MLD of sewage treatment capacity and a 25 MLD tertiary treatment plant.
Background
VA Tech Wabag has snagged two big orders from the Bangalore Water Supply and Sewerage Board, also known as BWSSB. They will be building energy-efficient wastewater treatment plants there in Bengaluru, with a focus on lower power use. The announcement lifted the company’s shares by more than 5% in early trade, reflecting positive investor sentiment. Based on the company’s internal classification, each large order is valued between ₹250 crore and ₹600 crore.
The projects include the design, construction and operation of a 100 million litres per day (MLD) sewage treatment plant at Byramangala and a 60 MLD sewage treatment plant at Bellandur. The company will also build a 25 MLD tertiary treatment plant at Byramangala to improve water recycling and treatment capacity.
The contract covers the complete technology package, including process engineering, electrical systems, instrumentation and control, building services, and operations and maintenance. VA Tech Wabag plans to complete construction within 36 months. After that, it will operate and maintain the facilities for seven years.
This marks another major contract for the company in July. Earlier in the month, it won a large international order to expand the Donauinsel Water Works in Vienna, Austria. That contract is valued between $30 million and $75 million.
The company also remains in focus due to ongoing tensions in West Asia. However, its management said in May that project execution in the region continues without disruption, although some project approvals have taken longer than expected. The company also expects order inflows to remain strong and believes execution could exceed its 20% target while maintaining revenue growth guidance of 15% to 20% for the current financial year.