Veolia Water Solutions and Technologies, a 2.1 billion euro global giant in water treatment, has hotfooted into India through a joint venture with Ahmedabad-based Doshion.
Inks 30:70 joint venture with Doshion
MUMBAI: Veolia Water Solutions and Technologies, a 2.1 billion euro global giant in water treatment, has hotfooted into India through a joint venture with Ahmedabad-based Doshion.
As India’s municipalities open up the barriers to invite private partnership for drinking water and waste water management, Veolia, with a presence in 57 countries, has timed its entry with Doshion, a closely held company owned and managed by the Doshi family.
Veolia wants to enter the high growth markets of India and China to ensure its future growth. It is currently growing at 14% annually.
Ashit Doshi, managing director, Doshion, believes it is a win-win deal for both partners. Veolia is a ‘perfect partner’. “With this joint venture we plan to bring newer technologies and bigger project management capabilities in the Indian subcontinent,” he added.
The 70:30 joint venture between Doshion and Veolia will eventually see the French company hike its stake gradually to make it a 50:50 JV in a span of three years.
“In typical French arrogant way, we believe we are the best,” said Jean-Michel Herrewyn, director general of Veolia. “The entry into India will make us more international. It will give us a new dimension,” Herrewyn added. “We are now a more western company,” he explained.
Leading global giants are eyeing the Indian water market, which is growing at 20% annually.
What’s heartening about India for the Veolias and Mekorots (the Israeli company that recently tied up with Jain Irrigation) of the world is that the new townships and special economic zones and not to mention the industries that are coming up will have to keep tweaking waste water for their daily use.
What’s more is that the global giants are eying an opportunity as municipalities become more amenable to public-private partnerships. “In Gujarat alone, there are many municipalities that have floated tenders,” says G Vishwanathan, director Doshion.
Many of these municipal facilities that process water sit on huge real estate. Veolia’s water technology needs only 1/20th of the real estate, freeing up the rest for development. This will enthrall municipalities in cities like Mumbai to adopt for new technologies.
j_satish@dnaindia.net
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