Business Opportunities in Indian Water Industry, Market Segments and Market Entry Possibilities

1. Indian Water Industry Background,
Market Segments
&
Market Entry Possibilities
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2. Indian Industry Background
India’s water desalination business is set to triple to $1.2 billion by 2017
The number of units that process sea water in India will reach 500 in five years from 180
More than 300 plants being built in the states of Tamil Nadu, Gujarat and Maharashtra
Desalination plants may help supply water for power producers, drug makers and others
More than 85 percent of India’s villages and half of its cities rely on wells for water
Farming accounts for 90 percent of total water withdrawals
India allocated $11 billion for urban supply projects in the five years ending March 2012
The market for desalination in India, which has a coastline of 7,517 kilometers (4,671 miles),
may be worth $630 million by 2014
Power plants and pharmaceutical companies use 72 percent of the current capacity, with
the remainder taken up by municipal corporations

3. Market Segments
Segment No of Key Decision Key Players
Players Making Criterion
Municipal Mega Projects (> <25 Technical Specifications, Multinational Players: Vivendi, GE,
1MLD) Financial Stability and Siemens Water, Ovivo
price Indian Players: VATECH WABAG,
Thermax, Ion Exchange
Drinking Water Supply to 500-1,000 Price Dominated by small players with
small housing projects (500 limited brand visibility
LPH – 1 MLD capacity)
Large Industrial Projects & <100 Technical Specifications, International Players: Veolia, GE, Ovivo,
Corporate owned projects Financial Stability and Siemens
-Oil & Gas Steel Plants, price
Refineries Domestic Players: VATECH Wabag,
- Five Star Hotels, MNC Thermax, Ion Exchange, Wipro
owned industrial projects
Small and Medium Industrial 500 – 1,000 Performance and Price Dominated by small to mid sized Indian
Projects companies
Specialty Applications <25 Performance, NA
- High Purity water for Specifications, and price
industries – e.g. electronics
- Pharma Grade Water
- Marine

4. Market Entry Possibilities
Entry Strategy Examples
Technology Provider - GE and Siemens have been offering
technology and technical support to Indian
OEMs and infrastructure companies
Direct Presence - Ovivo Water, Degremont (Suez Group) have
established wholly owned subsidiaries to
participate in Indian markets
Equity Participation in Indian - Vivendi acquired stake in Doshi Ion Limited
Player(s)

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Xnl Consultancy Services Pvt. Ltd.
161, Windsor Greens, F-28, Sector-50, Noida-201301,
Tel: +91-120-4316510, +91-9810209134
E-mail: rohit.c@expandinindia.net