India's water technology multinational company VA Tech Wabag Ltd will be looking only at projects funded by multilateral agencies or the Indian government and look at acquisitions in the digital technology space, said a top company official.
He also said the company's new joint venture Kopri Bio Engineering Pvt Ltd will focus on recovering additional resources from a sewage treatment plant in Thane in Maharashtra.
Speaking to reporters, Rajiv Mittal, Managing Director and Group CEO said the company has an order book position of over Rs 11,000 crore.
Mittal said: "We will go for projects funded by multilateral agencies and central government. The local bodies have financial problems."
The company won a major order of $48 million in the Kingdom of Saudi Arabia where Va Tech Wabag will design and build the 300 million litres per day independent sewage treatment plant (ISTP) at Jeddah airport.
According to Mittal, Va Tech Wabag has decided to be a pure play water technology company with a focus on being light on asset.
Mittal said the company would look at inorganic growth or acquisitions if there is a compelling case and also in the digital technology space.
Queried about Kopri Bio Engineering the 51:49 joint venture with Gradiant India Pvt Ltd Mittal said valuable resources can be recovered from waste water than just recycling it.
He said the joint venture company will operate and maintain the sewage treatment plant in Thane and recover resources to set up power generation plant and sell the residual solid waste.
On water getting traded in the Wall Street as Futures commodity Mittal said water is not an infinite resource and such trading augurs well Va Tech Wabag which is into waste water recycling and recovery of other resources.
Mittal said the company is adequately capitalised post the recent raising Rs 120 crore through a preferential issue. The money was raised to meet to meet working capital requirement, investment in projects under hybrid annuity model/build-operate-own-transfer (BOOT) and for other general corporate purpose.