Mumbai: Diversified business company GVK Power and Infrastructure Ltd is in talks with US-based General Electric Co. (GE) to venture into water treatment business in India, a top company official said.
“No alliance has been made between GE and us (yet). We are in talks...with GE for participating (in the) water treatment businesses in the country,” said chief financial officer and director Issac A. George.
He did not disclose investment details or the potential nature of a deal. Mint could not immediately contact GE to confirm the development.
Room for growth: Honda Siel Cars India Ltd’s water treatment facility at Surajpur, Uttar Pradesh. GVK Power is planning operations in the entire spectrum of water treatment business in India. Ramesh Pathania / Mint
GE Water and Process Technologies, a unit of GE’s infrastructure division, is the world’s largest firm in the business of water and waste water treatment.
Treated or potable water for household or industrial purposes is inadequate in many Indian cities and towns.
The potential for the water treatment industry in the country is estimated at Rs1,000-1,200 crore, according to three analysts Mint spoke with.
GVK Power, which manages the Chhatrapati Shivaji International Airport in Mumbai, is planning operations in the entire spectrum of water treatment that includes desalination, sewage treatment and waste water management.
GVK Power’s expertise in building infrastructure could come handy as it has built water treatment and distribution facilities while developing so-called special economic zones and other facilities.
IVRCL Infrastructures and Projects Ltd, GVR’s rival in the infrastructure business, is currently India’s largest water treatment company. Other companies in the business include Ion Exchange (India) Ltd, Thermax Ltd and Driplex Water Engineering Ltd.
GVK has already submitted pre-qualification documents to the State Industries Promotion Corp. of Tamil Nadu Ltd, a state-owned company that plans to set up a desalination plant near Chennai.
The company has also submitted pre-qualification documents for a water treatment and supply plant at Oil and Natural Gas Corp. Ltd’s petrochemical plant at Dahej, Gujarat.