Indian Water Market

Indian Water Industry - Creating A Better Environment

India faces a desperate situation of water shortage. Its fragile and finite water resources are depleting
while the demands for water from various sectors of the economy are rapidly rising. In recent years,
the industrial and domestic sectors have realized this disparity in the supply and demand. With the
New Economic Policy launched in 1991, the government tried to lead to maret!"ased approaches and
privatization of ur"an water. #he National Water Policy drafted last year loos at water as an
economic good and loos at numerous macro and micro initiatives in this regard. If you are in the
Indian water industry, you are in the right place at the right time.
India has devoted su"stantial resources to the water supply and sanitation sector, significantly
increasing its commitment since 19$% with the launch of the International &rining Water 'upply and
'anitation &ecade. #oday, drining water investments constitute a"out () of the national "udget. &ue
to these steps, today $*) of the ur"an and +*) of the rural population has access to pu"lic water
supplies. ,$) of the ur"an population and (-) of the rural population has access to sanitation
services. .ut clearly, there is a lot of scope and opportunity to do more.
On the Crossroads
#he Indian Water Industry is on the crossroads today. In a developing country with huge re/uirements
for water recycling and purification of drining water, there is a huge scope for growth. #he total
Indian water maret is estimated to "e a"out 0'& 11 "illion. While the government sector contri"utes
a"out *%) of this, the private industrial sector provides the remaining "usiness. #he overall maret is
growing at 1$) every year.
In 1%%(, the Indian 2overnment announced the mother of all pro3ects ! interlining of ma3or river
networs all over the country, there"y connecting the water!deficit and the water!a"undant areas. #he
pro3ect valued at over 0'& -% "illion is one of the largest in the world. It would ic start the
economy and "ring a huge set of re/uirements for e/uipments and construction.
Market For Water Treatment In India
#he water treatment maret in India is seeing immense e4pansion. While no relia"le pu"lished figures
are availa"le, Everything 5"out Water estimates the total water and wastewater treatment maret size
to "e a"out 0'& ,1% million. It is growing at a"out 1$) annually with certain segments lie the
industrial and drining water segments seeing even higher growths.
The Key Drivers for Industry ro!th
Increased awareness a"out drining water /uality and health
&ecreasing water /uality and users having to go for ground water
Environmental pressures on wastewater discharge from govt. pollution control "oards
6educing availa"ility of water forcing users to go for reuse 7 recycling of water
2eneral Industrial and Economic 2rowth particularly in chemical, pharmaceutical, power
plants, food and te4tile industry
Industry "ature
#he industry is currently highly fragmented and unorganized in nature. It can "e split into thee
categories8
9arge Players lie :5 #ech Wa"ag, &egremont, ;industan &orr!<liver, Paramount, Ion
E4change, #herma4 etc
=edium 'ized Players lie &oshion, 5/uatech, >ontus Water, &riple4, #E5=, Ions ;ydro
'mall Players over *%% in num"er
#he water treatment industry is largely concentrated in certain geographical pocets lie =um"ai,
Pune, ?hennai, ;ydera"ad, New &elhi, @olata and 5hmeda"ad. 'ome plant manufacturers are
present in other areas, "ut this num"er is limited.
#eve$ of Te%hno$ogy
#he maret nowledge and sill has "een increasing in recent times. =ost foreign manufacturers and
products are commonly availa"le in India now. #he maret is gradually shifting from chemical
treatment and &= plants to mem"rane technology. 'till, there are many huge segments lie power
plants and refineries that continue to use &= technology. #he concept of wastewater recycling and
zero discharge systems is growing in a "ig way in recent times.
#he government sector is primarily involved in the raw water treatment and the sewage treatment
operations. <n the other hand, the private industrial sector includes e/uipments for clarification,
sludge treatment, aeration, disinfection and filtration. ?onventionally, the maret has used
demineralisers for treatment. ;owever, over the last few years, 6everse <smosis technology has
grown in the maret and gradually replaced &=. Newer technologies lie 0ltrafiltration and
Electrodialysis are also entering the maret now.
A Who$e Different Market
#he maret has undergone a tremendous change in the last few years. #oday, there are a dozen
medium!sized companies who have rapidly increased their operations and won a num"er of pro3ects.
5lso hundreds of small system!integrators have come up all over the country, addressing local
re/uirements.
#here has also "een a geographical decentralisation that has taen place. Earlier the water treatment
industry was largely concentrated in =aharashtra. <ver the last ten years, pocets of concentration
have started all over the country in &elhi, ?hennai, ?alcutta, 5hmeda"ad and ;ydera"ad. #his has
had a positive and negative impact. While the maret has grown and costs come down, at the same
time, the /uality and relia"ility of many of these suppliers has "een suspect.
In the last few years, many international ma3ors have also entered the maret. While huge players lie
:eolia Water, 'uez de 9yonnaise A&egremontB and :5 #E?; Wa"ag are present in the maret,
chemical ma3ors lie Nalco and 2E .etz!&ear"orn also have operations. Indigenous development of
various treatment vessels lie resins, 6< mem"ranes and vessels have reduced costs and made various
technologies easily availa"le on a mass!scale. #he other interesting trend in the maret has "een the
move towards standardization of treatment systems as standard &= and 6< plants have "ecome more
common over the last two years.
Internationa$ Com&anies !ith a signifi%ant &resen%e in India
:eolia Water, >rance
&egremont, >rance
:5 #ech Wa"ag, 5ustria
#hames Water, 0nited @ingdom
2E Water, 0nited 'tates
&ow ?hemicals, 0nited 'tates of 5merica
&upont, 0nited 'tates of 5merica
2rundfos Pumps, &enmar
@'. Pumps, 2ermany
Nalco ?hemicals, 0nited 'tates of
5merica
&rewtreat ?hemicals, 0nited 'tates of
5merica
@rohne =arshall, 2ermany
Endress C ;auser, 2ermany
Emerson A>isher 6osemountB,
0nited 'tates of 5merica
@och 2roup, 0nited 'tates of
5merica
;ydranautics, 0nited 'tates of
5merica
Pentair 2roup, 0nited 'tates of
5merica
'chlum"erger D 5ctaris, >rance
5miantit, 'audi 5ra"ia
Netzsch, 2ermany
2eorge >ischer
5placo, 'audi 5ra"ia
=etrohm, 'witzerland
And many more'''
Future ro!th O&&ortunities
5 num"er of factors are fuelling growth in the maret. 6apidly rising population has led to increased
re/uirements for drining water and sewage treatment. While this is largely in the ur"an areas at the
moment, this could shift to smaller towns and villages in times to come. 5t the same time, water
scarcity has led to many industries going in for water recycling systems to meet their re/uirements. 5t
the same time, there is a growing awareness of environmental issues among industry as well as the
pu"lic. Widespread coverage of environment issues "y the media and N2<s has forced industries to
install water treatment e/uipment to prevent social and legal action against them.
#he government has also got into the action "y imposing stringent legislations regarding wastewater
treatment. #here is also a compulsory re/uirement of Environment ?learances from Pollution ?ontrol
.oards at the ?entre and the states. #he recent 'upreme ?ourt directive to move polluting units out of
&elhi is also liely to act as an impetus to future sales of water treatment e/uipment. 5lso at the same
time, many e4isting treatment plants would need to "e replaced or upgraded to meet with more
stringent standards.
&rining water pro"lems in India are /uite different from those in developed countries. #he main
concern is with disinfecting the pota"le water at the point of use. #raditionally, the point of use maret
has "een dominated "y ultraviolet purifiers and filters. <ne company Eurea >or"es holds over *%)
of the total purifier maret with their 0: purifiers, "ased on their e4cellent direct!mareting and
service networ. Industrial ma3ors lie Ion E4change and #herma4 have tried entering this maret, "ut
with limited success. In the last year, domestic reverse osmosis purifiers have struc the maret and
have "een hugely successful. 6ecent advancements in nanofiltration and ultrafiltration are now
entering this area and offer future opportunities.
<ne "ig area of growth has "een the increase in "ottled water plants in India. With li"eralization and
increased awareness of water /uality, hundreds of "ottled water "rands have entered the maret. #he
0'& 1*% million "ottled water maret is growing at the rate of +*!$%) and a large num"er of reverse
osmosis plants have come up in the last two years. With multinationals lie Pepsico and ?oe getting
esta"lished in the maret, the /uality and technology in their plants has improved.
Indian manufacturers have also tried to e4port and "uild their presence in overseas marets. #reatment
plants have "een e4ported to the =iddle!East and 'outh!East 5sia.
Big (ro)e%ts
#he contri"ution of mem"rane desalination plants is progressively increasing. 5 num"er of reverse
osmosis desalination plants are "eing installed "y industries to meet their increasing water needs. In
1999, a ,*%%m(Dday capacity 6< plant has "een commissioned at 'ia for 2u3arat Electricity .oard
"y Ion E4change. 5 -,%%%m(Dday seawater 6< plant has "een commissioned "y #herma4 for NI6=5
at .havnagar using ;ydranautics mem"rane. 6< has also "een employed "y many industries for
waste water recycling. 5 11%%%m(Dday waste water 6< plant has "een recently commissioned "y
5/uatechA5siaB in 6ashtriya ?hemical >actory, =um"ai. Ion E4change has commissioned another
(%%% m(Dday waste water 6< plant at I>>?<, Phulpur. 'ince early nineties, hundreds of mem"rane
"ased "racish water desalination plants of capacities of - to -% cu"ic meters per day were set up for
providing safe drining water to selected pro"lem villages in the states of 2u3arat, 6a3asthan, #amil
Nadu and 5ndhra Pradesh.
<n the other hand, several thermal desalination plants have also "een operating in the coastal areas of
the country for inhouse use "y the industries. 5 ,$%%% cu"ic meters per day =ulti!effect &esalination
plant has "een commissioned in 1999 at 6eliance Petrochemicals ?omple4 in the western coast of the
country at Eamnagar. #he industrial giant 9arsen 7 #ou"ro A97#B has also commissioned a thermal
desalination plant for their cement industry.
Cha$$enges on the *oad Ahead
#he industry still faces constraints moving ahead. #he regulatory "odies lac the teeth to enforce
many of the guidelines and the mandatory re/uirement of a functional treatment plant gets "ypassed
sometimes. Polluting industries have adopted an uncaring attitude and it has re/uired active support of
many N2<s to get them to act. #here is still a large capital investment re/uired for many treatment
plants and most industries try to avoid it or go for a short!cut solution. 5wareness and recognition of
newer technologies has "een slow in coming.
In recent times, the technical e4pertise and now how of the top water treatment manufacturers is
pretty standard. #herefore, their success in getting "ig pro3ect orders has "een dependent on their
pricing, pro3ect e4ecution sill and process engineering a"ility. #his trend is liely to increase in the
coming years.
Con%$usion
#he Indian water industry is today on the crossroads. In a developing country with core re/uirements,
a need to play socially responsi"le and proactive role is essential. With proper direction from the
government and appropriate steps from the industry leaders, it is poised to tae off in the future.