Private equity flows into water sector, may top Rs 7,500 cr in 2 years

Published on August 27, 2013 05:32 by Water Network Research, Official research team of The Water Network in Business

Private equity funds are eyeing investments in the country's water sector. Singapore-based CLSA Capital Partners invested $9.2 million (Rs 55 crore) in Gurgaon-based Luminous Water Technologies in end-July, through its two funds. Last year, the alternative asset management firm had invested $15 million in Delhi-based Earth Water Group, which is into water and wastewater treatment projects. Similarly, Capvent AG, a Switzerland-based private equity (PE) fund, picked up 51 per cent stake for Rs 12 crore in Morf India Ltd, a Chennai-based water engineering company.

Earlier this month, Organica Water, which is into treatment and recycling of wastewater, completed a Series B round of financing. Led by the International Finance Corporation and WLR China Energy Infrastructure Fund, existing investors RNK Capital and Gamma Capital Partners also participated in the funding.

The Hungarian firm has offices in New Delhi, and has signed contracts with several Indian water companies for design and equipment supply of water treatment plants. Currently pegged at Rs 3,500 crore, analysts estimate by 2015, private equity investment in the water sector is set to touch Rs 7,500 crore.

A report by TechSci Research has noted that India's water purifiers market is expected to grow at a compounded annual growth rate of 24 per cent between 2013-18. Approximately 70 per cent of the country's water purifier market is dominated by organised players such as Eureka Forbes, Hindustan Unilever, Tata Chemicals and Kent.

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