Jindal Saw in 50:50 joint venture with Manila Water Co

Steel pipemaker Jindal Saw Ltd said on Friday it has signed an equal joint venture agreement with Philippines-based Manila Water Company Inc to jointly develop new businesses in India.

The joint venture will plan and develop water supply, waste water management and environmental services-related projects in Rajasthan, Gujarat and Maharashtra, it said in statement to the National Stock Exchange.

The JV plans to make an initial investment of $1 million into the project development company, which will target various cities for water concessions, managing director, Indresh Batra told Reuters over the telephone.

Manila Water is the water utility arm of Ayala Corp, Philippines' oldest arm.

"Within six months we expect that we'll be developing projects on water concessions. Our model is to identify high-potential cities and have private concessions with them," Batra said.

Jindal Saw, which has cash reserves of $260 million, will fund the joint venture through internal accruals and does not plan to raise funds immediately, he added.

Batra expects to earn revenues of $100 million anually from this joint venture within three years.

Ahead of the announcement, shares in the firm ended down 1.88% at Rs185.55 in a weak Mumbai market.