Concord Enviro Systems Ltd Management Discussions

Economic Review

Global Economic Overview

In 2024, the global economy expanded at a moderate pace of 3.3%, indicating a period of relative stability, though growth remained subdued. However, as we move through 2025, the global landscape is undergoing a significant shift, driven by countries reordering their policy priorities in response to rising geopolitical tensions and growing economic challenges.

The United States has introduced a series of new tariff measures, prompting swift and forceful retaliations from major trading partners. This culminated in the implementation of near-universal tariffs on 2 nd April. As a result, effective tariff rates have surged to levels not seen in over a century, delivering a sharp and damaging shock to global growth.

The situation has been compounded by the pace and unpredictability of these policy changes, which have significantly heightened economic uncertainty and made the near-term outlook increasingly volatile. This growing instability has also undermined the reliability of traditional forecasting models, making it difficult to base projections on previously dependable assumptions. Amidst this uncertainty, global headline inflation is expected to decline more slowly than earlier anticipated. It is now projected to ease to 4.3% in 2025 and further to 3.6% in 2026. The revision reflects higher inflation estimates for advanced economies, partially offset by marginal downward adjustments in emerging markets and developing economies.

GDP growth projections

(in %)

	2026	2025	2024
Global Economy	3.0	2.8	3.3
Advanced Economies	1.5	1.4	1.8
Emerging Markets and	3.9	3.7	4.3
Developing Economies

(Source: World Economic Outlook, April 2025) United States: The U.S. economy is now expected to grow at 1.8% in 2025, reflecting a downward revision driven by the combined impact of restrictive monetary policy and escalating trade disruptions. Inflation is likely to remain elevated at around 3%, with recent tariff measures alone adding an estimated one percentage point. Domestic consumption is losing momentum, while the manufacturing sector is grappling with rising input costs amid persistent global supply chain pressures. China: Chinas growth is also moderating, with forecasts revised to 4% in 2025, reflecting the impact of subdued external demand, ongoing internal deleveraging, and structural transitions toward a consumption-led economy. Inflation is expected to remain low, and could even turn deflationary. This trend raises concerns over underlying demand weakness and the potential for renewed credit stress, particularly within the property sector Euro Area: The eurozone remains weighed down by sluggish consumption and exports, with GDP growth revised to 0.8% in 2025. Political instability in some regions and persistent energy insecurity continue to undermine investor confidence, especially in Germany and France.

Emerging Markets and Developing Economies (EMDEs): Growth across emerging market and developing economies is showing signs of moderation, with the impact particularly pronounced in countries such as Mexico, South Africa, and Argentina. High debt levels and depreciating currencies in these markets are intensifying inflationary pressures and constraining policy flexibility. At the same time, many developing nations are grappling with tighter financing conditions and declining investor interest, further deepening economic vulnerabilities.

Across the world, economies are realigning growth strategies with sustainability goals to tackle climate change, resource constraints, and inequality. ESG principles are shaping policies, investment flows, and business operations. Decarbonising supply chains, expanding renewables, and fostering circular and inclusive models are now core to economic resilience and global cooperation. In this context, water circularity is emerging as a key priority. Circular models that reuse, recycle, and recover water are enabling more efficient and resilient systems. With advancements in treatment technologies and global partnerships, water circularity is being recognised not just as an environmental need but as a strategic lever for sustainable economic growth.

Outlook

Despite the challenges facing the global economy, this period offers a unique opportunity to strengthen resilience and chart a more sustainable path forward. The adaptability shown by many economies under pressure signals that recovery is possible with the right mix of coordinated policies and proactive reform. By working together to establish a stable and transparent trade environment, advancing timely debt resolution, and addressing structural imbalances, countries can support a more balanced and inclusive global recovery. Maintaining clear monetary policy direction, using macroprudential tools as needed, and implementing credible fiscal plans will help restore financial stability and protect long-term growth.

International cooperation will be essential in navigating the road ahead. With aligned strategies, strong leadership, and a commitment to shared progress, the global economy can regain momentum, rebuild buffers, and open new opportunities for prosperity across regions.

Indian Economic Overview

Indias economic performance in FY 2024-25 has been solid, with an estimated GDP growth rate of 6.5%, maintaining its place as the fastest-growing major economy. The economy is benefitting from a combination of strong infrastructure spending by the government, a rebound in rural demand spurred by a successful Kharif crop, and the continued growth of the services sector, particularly in finance and real estate The Reserve Bank of Indias accommodative stance, including a rate cut, has provided a much-needed boost to investment and consumption. Furthermore, improved manufacturing performance and steady urban consumption have kept the economic momentum strong. Despite the ongoing risks posed by global trade uncertainties, Indias strong domestic foundations, supportive policies, and a thriving private sector are expected to keep growth on track.

GDP Growth Projections

(in %)

FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25

(6.6) 8.7 7.0 7.2 6.5

Source: PBI [ Note to the Designer: Please present this information as bar graphs]

Sector-wise performance in FY 2024-25

Agriculture and Allied Sectors: In FY 2024-25, the agricultural sector growth rate is estimated at 3.8%, recovering from a period of underperformance. The favourable monsoon season have resulted in a bountiful Kharif crop, which has significantly boosted rural incomes and spurred increased demand. Alongside this, strategic government initiatives focused on strengthening agricultural infrastructure and providing support to farmers have created a solid foundation for sustainable growth in the sector.

Industrial Sector: In FY 2024-25, the industrial sector is estimated to grow by 6.2%, driven by a boom in construction and key utilities like electricity, gas, and water supply. Manufacturing has also held its ground, with higher production levels in major industries fuelling the overall sectors growth and contributing to a positive outlook for the year.

Services Sector: The services sector continues to be a key pillar of Indias economic strength, with financial, real estate, and professional services estimated to grow by 7.2% in FY 2024-25. At the same time, trade, transport, and communication services are estimated to grow by 6.4%, driven by an increase in economic activity and strong consumer demand.

Construction Sector: Estimated to grow by 8.6% in FY 2024-25, the construction sector is benefitting from heightened infrastructure investments and strong government support. Key spending initiatives are driving growth, generating employment, and creating positive ripple effects throughout related industries. From April to December 2024, Indias retail inflation moderated to a controlled 4.9%, influenced by a period of stability in food and gasoline costs. The decline in inflation allowed the Reserve Bank of India a unique opportunity for monetary easing, resulting in a 25-basis point rate reduction in February 2025, the first of its kind in nearly five years. This intentional adjustment indicates restored confidence in the inflation forecast and is poised to enhance both investment inflows and consumer expenditure, thereby fortifying the nations economic way forward.

The administration has confirmed its consolidation strategy, establishing a budget deficit target of 4.9% of GDP for FY 2024?€“25, a notable enhancement from the previous years 5.6%. The FY 2025-26 Union Budget has designated 11.21 lakh crore, approximately 3.1% of GDP, for capital investment. This significant commitment highlights a deliberate focus on infrastructure-driven growth, intended to enhance structural capacities, provide employment opportunities, and produce multiplier effects throughout the wider economy. Indias trade narrative appears poised for a gradual yet consistent resurgence. Exports are anticipated to increase, bolstered by robust worldwide demand for essential commodities such as engineering products, pharmaceuticals, and electronics. Conversely, declining oil prices and a robust domestic manufacturing initiative via the PLI programs are expected to diminish the necessity for imports. All of this indicates a diminishing trade deficit and a more stable external environment. The government is implementing new trade agreements and policies that enhance exports, which may elevate Indias position on the world stage.

In tandem with economic resilience, environmental sustainability remains a key priority. The government is accelerating its water circularity agenda to address the mounting challenges of water scarcity. Flagship programs like Namami Gange and Jal Jeevan Mission are expanding the infrastructure for wastewater treatment and reuse. Guided by the National Framework on Safe Reuse of Treated Water, these initiatives are enabling multi-stakeholder collaboration and unlocking innovative reuse models. This reflects a decisive shift from linear water use to a regenerative approach securing both ecological balance and long-term water security.

Outlook

Indias economy is set to grow between 6.3% and 6.8% in FY 2025-26, driven by strategic reforms, digital growth, and an expanding consumer market. Programs like Make in India and the Production-Linked Incentive

(PLI) schemes are strengthening the manufacturing landscape, attracting investments in electronics, semiconductors, and renewable energy. At the same time, large-scale infrastructure development spanning highways, ports, and smart cities is driving economic activity and job creation. With strong policy backing and ongoing investments, India is well-positioned for long-term growth, reaffirming its role as a global economic powerhouse.

Industry Review

The water challenge: Scarcity, climate, and sustainability

Water is the foundation of life, essential for human survival, environmental balance, food production, industrial activity, and economic progress. As the global population continues to grow and climate variability intensifies, ensuring reliable and equitable access to water has become one of the most urgent priorities worldwide. The gap between demand and available supply is widening, driven by poor resource management, pollution, and unsustainable consumption patterns. This growing imbalance is putting public health, food systems, and economic stability at serious risk.

Climate change is fundamentally a water crisis. Its impacts are most visible through worsening floods, rising sea levels, shrinking ice fields, wildfires, and prolonged droughts. These climate-driven events are altering water availability and consumption patterns across geographies. Sustainable water management is therefore not only vital for environmental protection, but also for building societal resilience and reducing carbon emissions. In this context, wastewater treatment and conservation practices are key. Safely managed wastewater offers an affordable and renewable source of water, energy, nutrients, and other recoverable materials that can significantly mitigate the effects of climate change.

Water stress is commonly assessed by comparing the amount of freshwater withdrawn for use with the renewable freshwater available. Regions such as the Middle East and North Africa already face extremely high stress levels, with withdrawal rates exceeding 100%, indicating over-extraction and reliance on desalination. In contrast, parts of Northern Europe, Sub-Saharan Africa, Canada, and Latin America currently experience relatively low to moderate water stress.

India presents a particularly severe case. With 18% of the worlds population and only 4% of its freshwater resources, the country is under intense pressure. Irregular monsoons, climate change, frequent droughts and floods, and inefficient water management have pushed many areas into critical stress. In 2023, regions with extremely high water stress were using over 80% of their renewable water supplies to meet agricultural, livestock, and domestic needs.

The World Resources Institute identifies Bahrain, Cyprus, Kuwait, Lebanon, Oman, and Qatar as the most water-stressed nations, where limited availability meets high demand. An estimated 83% of the population in the Middle East and North Africa already faces extreme water stress, followed by 74% in South Asia. Projections show that by 2040, 33 countries could be facing severe water crises. By 2050, global water demand is expected to increase by 20% to 25%. Meanwhile, the number of watersheds experiencing significant year-to-year variability is projected to rise by 19%.

Short-term droughts are also becoming more common and more disruptive, leading to water shortages and forced shutdowns of public supplies. Recent examples include India, Iran, Mexico, England, and South Africa. These recurring crises point to deeper structural vulnerabilities in water governance and infrastructure. Addressing these challenges requires urgent and coordinated action. Accelerating conservation efforts, modernising infrastructure, scaling circular water practices, and strengthening wastewater treatment are essential. Equally important are regulatory reforms and investments in climate-resilient water systems. Only through integrated and sustained efforts can we secure a water-secure and climate-resilient future for all.

Circular economy and sustainable water management

With half the global population facing water scarcity for at least one month each year, it is imperative to rethink traditional water management systems. The circular economy presents a compelling pathway, emphasising reuse, recycling, and regeneration of water resources. Much like how end-of-life products are repurposed, used water can be captured, treated, and reintegrated into the system. Practices such as greywater reuse, rainwater harvesting, wastewater treatment, and aquifer restoration help ease pressure on freshwater sources while opening new avenues for economic and technological innovation.

India is advancing this shift through a combination of state and national interventions. Several states have implemented forward-looking wastewater reuse and Zero Liquid Discharge (ZLD) regulations that mandate compliance and incentivise sustainable practices. These efforts are reinforced by national programmes such as PMKSY, Atal Bhujal Yojana, and Jal Shakti Abhiyan, which aim to promote water conservation, boost irrigation efficiency, and recharge groundwater reserves to enhance long-term water resilience. Industries, responding to both regulatory and environmental imperatives, are adopting more sustainable water strategies. The 4R approach reduce, reuse, recycle, and reclaim is becoming a standard across sectors. Among the most transformative solutions is ZLD, a process that enables recovery of up to 90 percent of wastewater, effectively eliminating liquid discharge and reducing environmental impact. Widely used in industries like textiles, food processing, mining, and energy, ZLD also allows for the recovery of valuable salts and chemicals while minimising sludge generation.

Though ZLD systems rely on energy-intensive technologies such as evaporation and crystallisation, industries are increasingly adopting cost-effective pre-treatment solutions to optimise performance and reduce operational costs. While the upfront investment can be significant, the long-term benefits of reduced freshwater dependency, compliance with environmental norms, and resource efficiency make ZLD a valuable pillar in the broader movement toward water sustainability.

Global water and wastewater treatment market

The global water and wastewater treatment solutions market grew from USD 212.4 billion in 2018 to USD 313.0 billion in 2023, reflecting a CAGR of 8.1%. Looking ahead, the market is projected to reach USD 452.9 billion by 2028, with a forecast CAGR of 7.7%. This steady growth will be driven by increasing regulatory pressures, environmental sustainability goals, and rising investments in infrastructure. The market encompasses systems and services for water treatment, including operations, maintenance, spares, and chemicals, with growing integration of digital technologies like IoT and AI to enhance efficiency and circularity.

Source(s): Expert interviews, Industry publications & articles, 1Lattice Analysis

The global water and wastewater treatment solutions market has seen steady growth, with regions like North and South America continuing to lead demand. Asia-Pacific and the Middle East & Africa are emerging as key growth regions, driven by rising urbanisation, industrial expansion, and increasing focus on sustainable water management. Countries such as India, Indonesia, and the Philippines are witnessing a surge in demand due to growing urban populations and the need for reliable recycling and reuse systems. Globally, stricter environmental regulations, the need for advanced water monitoring, and sustainability commitments are shaping regional priorities and accelerating market adoption.

Market segmentation basis key regions (US$ Billion)

The global water and wastewater treatment market is witnessing growing adoption of advanced treatment technologies to improve water quality and enhance operational efficiency. Technologies such as moving bed bioreactor (MBBR), fluidised aerobic bioreactor (FAB), membrane bioreactor (MBR), and sequencing batch reactor (SBR) are increasingly being implemented across municipal and industrial applications. These systems play a critical role in optimising treatment operations and ensuring regulatory compliance by integrating smart technologies tailored to specific process needs.

Beyond core technologies, the market includes a wide range of services such as design and engineering, operations and maintenance (O&M), and the use of specialised treatment chemicals. These offerings are vital to ensuring long-term plant efficiency, improving treated water quality, and minimising environmental impact. Biological treatment methods like activated sludge and anaerobic digestion remain important in shaping sewage treatment strategies, while chemical additives continue to enhance overall process performance.

Global water and wastewater treatment market segmentation by offerings (US$ Billion)

Growth drivers for global water and wastewater treatment market

Escalating water stress across regions: Water scarcity is a key present-day crisis. With demand projected to outpace supply by 2030, the global focus is shifting toward efficient water management. Urban expansion, agriculture, and industry are placing intense pressure on limited freshwater resources, accelerating the need for advanced treatment and reuse technologies.

Stricter environmental and discharge norms: Across geographies, regulatory frameworks are becoming more stringent, mandating higher levels of effluent treatment and safe discharge. From the EUs Water Framework Directive to Indias CPCB norms and the U.S. EPA regulations, enforcement is driving compliance-based investments in wastewater infrastructure, particularly for high-pollution industries.

Industrial growth and responsible operations: The expansion of capital-intensive sectors energy, pharmaceuticals, F&B, and chemicals is driving demand for tailored water solutions. ESG mandates and sustainability-linked financing are pushing companies to adopt zero-liquid discharge, closed-loop systems, and low-energy treatment models, embedding circularity at the core of operations.

Infrastructure overhaul and smart technologies: Aging infrastructure in developed markets and capacity gaps in developing ones are prompting a surge in modernisation projects. Smart water networks, IoT-enabled sensors, AI-based quality monitoring, and digital twins are transforming how utilities and industries manage water resources, making systems more agile and responsive.

Climate change and resilient water systems: The increasing frequency of climate-induced events floods, droughts, and contamination has exposed the vulnerability of traditional water systems. As a result, there is a shift towards decentralised, modular, and mobile treatment technologies that offer speed, scalability, and resilience under stress.

Policy support and global capital flows: Government-backed capital expenditure, green bonds, and multilateral funding are unlocking large-scale investments in water infrastructure. Public-Private Partnerships (PPP), outcome-based contracts, and climate finance mechanisms are helping bridge the infrastructure gap, particularly in high-growth, water-stressed economies.

Indian water and wastewater treatment solutions market

Indias water and wastewater management market was valued at US$ 7.3 billion in FY24 and is projected to reach US$ 12.8 billion by FY29, growing at a CAGR of 12.0%. This strong growth underscores the rising economic and environmental need for efficient water management systems. With growing concerns over water scarcity, both municipalities and industries are under increasing pressure to adopt sustainable wastewater treatment practices. Stricter regulations and the push to reduce freshwater dependency are driving a broad shift toward recycling and reuse across sectors.

As the worlds third-largest coal producer, India faces substantial environmental challenges, further intensifying the demand for advanced wastewater treatment technologies. In 2021, the country generated around 72,368 million litres per day (MLD) of sewage, of which only 20,235 MLD or 28% was treated. This is despite a total installed capacity of 31,841 MLD, highlighting significant underutilisation and operational gaps.

The consequences of untreated sewage are severe, resulting in public health risks, environmental degradation, and higher emergency response costs for municipalities. Enhancing treatment infrastructure and capacity utilisation is essential to mitigating these impacts and ensuring long-term fiscal and ecological resilience.

In this context, stringent government regulations mandating sewage treatment before discharge are acting as a key catalyst for market growth. At the same time, sectors such as pharmaceuticals, textiles, food and beverage, and chemicals are driving demand by adopting efficient water management systems to meet compliance standards and advance their sustainability goals.

The growing share of wastewater treatment solutions highlights rising awareness around environmental sustainability and industrial responsibility. This momentum is fueled by stricter regulations, rising water scarcity, and expanding industrial demand prompting greater adoption of advanced, resource-efficient technologies across sectors.

Indian water & wastewater treatment solutions segmentation by application (US$ Billion)

Source(s): Expert interviews, Industry publications & articles, 1Lattice Analysis

Municipal corporations employ solutions like filtration systems, chemical and biological treatments, advanced oxidation processes, and desalination to ensure safe and clean water supply. Simultaneously, industries are increasingly adopting advanced technologies such as effluent treatment plants (ETPs), activated sludge processes, membrane bioreactors (MBRs), electrocoagulation, and zero liquid discharge (ZLD) systems to recycle wastewater and boost resource efficiency. Together, both sectors play a pivotal role in driving demand for water treatment solutions, reinforcing environmental responsibility and advancing sustainable development goals.

Market segmentation by end users (US$ Billion)

Source(s): Expert interviews, Industry publications & articles, 1Lattice Analysis

Growth drivers for Indias water and wastewater treatment market

As India tackles the dual challenges of rapid economic expansion and resource scarcity, the demand for sustainable water management solutions is rising steadily. The following drivers are shaping this transformation: Rising industrialisation and urbanisation: Accelerated economic development is fueling the demand for efficient water treatment solutions, especially from water-intensive sectors like power, steel, and textiles. As urban centers expand, the need for regulatory compliance and responsible wastewater disposal is driving market growth. Industries and municipalities alike are investing in scalable, regulation-compliant technologies to meet the rising urban demand.

Water scarcity and depleting groundwater levels: India is grappling with severe water stress, with projections suggesting demand may double by 2030. Urbanisation, population growth, and industrial usage are straining existing groundwater reserves. This urgency is prompting a shift toward more efficient use of freshwater and the adoption of innovative treatment technologies aimed at conservation and reuse.

Government initiatives and funding mechanisms: A range of targeted initiatives including AMRUT, the National Mission for Clean Ganga (NMCG), and Jal Jeevan Mission are prioritising water rejuvenation and infrastructure modernisation. Government funding, along with regulatory frameworks that encourage private sector participation, are reinforcing the ecosystem for sustainable water solutions.

Stringent effluent discharge regulations: Regulatory authorities, including CPCB and SPCBs, are enforcing strict norms on effluent treatment. These mandates have escalated the demand for advanced treatment systems in both industrial and municipal setups, fostering compliance and raising the bar for environmental responsibility.

Adoption of advanced treatment technologies: There is a growing shift toward sophisticated treatment processes such as membrane separation, biological treatment, disinfection, and zero-liquid discharge systems. Increased awareness of the environmental and operational benefits of these technologies is driving adoption across end-user segments helping organisations meet regulatory, economic, and sustainability goals.

Indian industrial water & wastewater treatment industry

The industrial wastewater treatment market plays a pivotal role in purifying water used across sectors like manufacturing, chemicals, pharmaceuticals, and energy ensuring compliance with environmental norms before discharge. It leverages physical, chemical, and biological processes to remove harmful pollutants and is increasingly driven by stringent regulations, sustainability goals, and growing awareness of water scarcity.

Valued at US$ 57.7 billion in FY24 and projected to reach US$ 108.5 billion by FY29, the Indian industrial wastewater treatment market is expected to grow at a CAGR of 13.5%. This growth reflects the potential of wastewater treatment adoption across all industrial requirements, highlighting the sectors untapped scale.

With rising industrialisation and the growing need for responsible water usage, the market is steadily shifting toward closed-loop systems, water reuse, and advanced technologies. As industries prioritise environmental stewardship and regulatory compliance, the sector offers strong momentum for innovation, investment, and long-term sustainability.

Market potential of industrial wastewater treatment solutions (US$ billion)

Source(s): Expert interviews, Industry publications & articles, 1Lattice Analysis

The industrial water and wastewater treatment segment in India is poised for significant growth, fueled by the increasing demand for high-quality water in critical industrial processes. As industries seek to optimise resource use and ensure operational continuity, the need for treated freshwater is becoming more pronounced. Sectors like food and beverage and pharmaceuticals, which require sanitised water free from microorganisms and contaminants, are driving heightened adoption of advanced treatment solutions further reinforcing the segments growth trajectory.

Source(s): Expert interviews, Industry publications & articles, 1Lattice Analysis

The industrial wastewater treatment market caters to a wide range of end-users, each shaped by distinct operational needs and compliance mandates. Refineries lead the segment, driven by capacity expansions and stricter environmental norms, followed by chemicals, power, textiles, and pharmaceuticals industries facing rigorous pollution control requirements. While steels share has moderated amid lower investment, it remains a key contributor. Food and beverage, fertilisers, and distilleries are also emerging as critical demand centers, adopting advanced treatment solutions to align with sustainability goals.

Market segmentation by end users (US$ billion)

Source(s): Expert interviews, Industry publications & articles, 1Lattice Analysis

Growth drivers for Indian industrial water & wastewater treatment market

Organisations are actively embracing responsible water management to reduce their ecological footprint and align with evolving stakeholder expectations. The key forces fueling this shift include: Water Scarcity: With freshwater sources under strain from population growth and climate change, industries are investing in recycling and reuse to secure long-term water availability.

Regulatory Compliance: Stricter discharge regulations are pushing industries to adopt robust treatment systems that ensure environmental adherence and reduce pollution risks.

Cost Efficiency: Water treatment solutions offer tangible savings by lowering consumption, minimising discharge fees, and reducing exposure to non-compliance penalties.

Sustainability Goals: Companies are integrating sustainability into core operations driving adoption of solutions like Zero Liquid Discharge (ZLD) to cut water usage and environmental impact.

Technology Advancements: Breakthroughs in membrane filtration, oxidation processes, and automation are making treatment solutions smarter, more scalable, and cost-effective.

Global & Indian Wastewater Recycling/Reuse industry

Wastewater recycling and reuse solutions are gaining significant traction globally, driven by growing water scarcity, stricter environmental regulations, and rising sustainability imperatives. The global recycling and reuse market is projected to grow at a CAGR of 10.1%, expanding from US$ 30 billion in CY23 to US$ 48.6 billion by CY28. North America and Europe each accounted for 35% of the market in CY23, while Asia-Pacific continues to see rapid adoption fueled by urbanisation, industrial growth, and regulatory enforcement across economies such as China, India, Vietnam, and Indonesia.

India is also making decisive strides in this space, with its recycling and reuse market valued at US$ 235.5 million

( 1,968 crore) in FY24. As water scarcity deepens and industrial activity expands, there is rising demand for innovative, energy-efficient wastewater treatment systems. Increasingly stringent regulations and government-led initiatives like the National Water Mission are catalyzing investments in recycling infrastructure. Industries are now integrating treated wastewater into non-potable uses such as cooling, irrigation, and process operations, minimising dependence on freshwater sources and enhancing sustainability.

Market size for recycling and reuse solutions in India and key global regions (US$ billion)

Source(s): Expert interviews, Industry publications & articles, 1Lattice Analysis

Green opportunities

Carbon Capture

As global economies accelerate their decarbonisation efforts, carbon capture is rapidly emerging as a cornerstone technology in the transition to net zero. With regulatory frameworks tightening and carbon pricing mechanisms gaining momentum, industrial emitters are being compelled to act. Carbon Capture, Utilisation, and Storage (CCUS) solutions offer a scalable and commercially viable pathway to mitigate hard-to-abate emissions, particularly in sectors such as cement, steel, power, and chemicals.

Indias commitment to reduce the emissions intensity of its GDP by 45% by 2030 and achieve net-zero by 2070 is catalysing both policy and investment activity around carbon management technologies. Beginning FY26, the governments introduction of Greenhouse Gas Emission Intensity (GEI) targets for high-emission sectors has made non-compliance financially consequential, pushing industries to fast-track adoption.

For forward-looking companies, early investments in CCUS can serve as both a climate imperative and a competitive differentiator enabling compliance, cost savings, and access to new revenue streams from carbon markets.

Solar PV

The Solar Photovoltaic (PV) cell manufacturing industry is central to the global clean energy transition. As nations work towards net-zero commitments, solar energy continues to see strong policy support and investment flows. However, while solar power is renewable, the manufacturing of PV cells presents significant environmental challenges particularly related to water usage and wastewater generation.

The production process involves multiple water-intensive steps such as wafer cutting, texturing, doping, etching, and cleaning. Additionally, the use of strong acids and alkalis such as hydrofluoric acid, nitric acid, and potassium hydroxide generates complex, high-strength wastewater streams that are often laden with hazardous chemicals and heavy metals. These characteristics make wastewater management in PV manufacturing both technically demanding and capital-intensive.

As the global solar PV market grows at a projected CAGR of 7.7% through 2030, sustainability and regulatory compliance are becoming key differentiators. Increasingly, countries are mandating Zero Liquid Discharge (ZLD) norms and stricter effluent standards for the electronics and clean energy manufacturing sectors. In this context, advanced water treatment solutions, chemical recovery systems, and closed-loop recycling frameworks are gaining traction.

For manufacturers, aligning capacity expansion with sustainable water management practices is no longer optional it is essential. The ability to scale operations while minimising environmental footprint will determine long-term viability, license to operate, and stakeholder confidence.

Semiconductor

The semiconductor industry is the backbone of modern digital infrastructure powering everything from smartphones and automobiles to advanced computing and AI. As global demand surges, governments are incentivising domestic chip manufacturing to enhance supply chain resilience. However, the fabrication of semiconductors is highly resource-intensive, particularly in its reliance on ultra-pure water (UPW) and stringent wastewater treatment protocols.

High purity water is critical throughout the chip fabrication process, used in cleaning, etching, rinsing, and polishing at the nanoscale. Even microscopic impurities can compromise yields and performance. This has made reliable access to large volumes of UPW a foundational requirement for chip foundries.

Equally critical is wastewater management. The complex effluents generated during production containing acids, solvents, and heavy metals pose significant environmental challenges. In several geographies, including India, Taiwan, South Korea, and parts of the U.S., regulators mandate Zero Liquid Discharge (ZLD) systems or equivalent standards to ensure no untreated wastewater is released into the environment.

As countries race to build semiconductor ecosystems, sustainable water management has become a strategic and operational imperative. Investments in advanced water recycling, real-time monitoring systems, and closed-loop water circuits are becoming industry best practices.

Looking ahead, the ability to balance high-precision manufacturing with environmental stewardship will define competitive advantage and regulatory readiness in the semiconductor space.

Green Hydrogen

Green hydrogen is fast emerging as a critical enabler of global decarbonisation, particularly for hard-to-abate sectors like steel, cement, shipping, and chemicals. Produced by electrolyzing water using renewable energy sources such as solar or wind, green hydrogen offers a clean and versatile fuel alternative. However, the production process hinges on access to high-purity demineralised water, raising important questions about water sustainability as the sector scales.

To avoid placing stress on already-scarce freshwater resources, seawater is increasingly being explored as the preferred input. Yet, converting seawater into ultra-pure water suitable for electrolysis involves energy-intensive and technically complex desalination processes. This introduces a dual challenge: reducing the environmental footprint of desalination while ensuring economic viability on a scale.

As global demand for green hydrogen accelerates driven by policy incentives, corporate commitments, and emerging downstream applications like green ammonia there is a pressing need for innovative, low-energy water purification technologies. Integrated systems that combine renewable-powered desalination with electrolysis are gaining attention as the next frontier.

In this context, the convergence of water treatment, renewable energy, and hydrogen production technologies will be key to unlocking scalable, sustainable growth. For early movers, building capabilities around seawater-to-hydrogen ecosystems can provide a strategic edge in both export markets and domestic energy transitions.

Concord Enviro: Enabling Circular Solutions

At the forefront of industrial water sustainability, Concord Enviro is a global leader in wastewater treatment and reuse solutions, including Zero Liquid Discharge (ZLD) technologies. As of 31 st March 2024, the company ranked among the top six players in Indias industrial water recycling and reuse market.

Concord offers comprehensive, end-to-end capabilities spanning design, engineering, manufacturing, installation, operations, maintenance, and IoT-enabled digital monitoring. Its tailored systems help industries reduce freshwater dependency, improve energy efficiency, and maximise resource recovery. With a strong emphasis on customisation, Concords solutions serve critical sectors including textiles, food and beverage, pharmaceuticals, and general manufacturing, enabling them to meet stringent regulatory norms and ambitious water efficiency goals.

Through cutting-edge technologies, Concord not only minimises effluent discharge and pollution but also transforms wastewater into a valuable resource supporting broader circular economy objectives. As the cost of wastewater disposal and non-compliance penalties continue to rise, Concords sustainable and cost-effective solutions are becoming essential to future-ready industrial operations.

Looking ahead, the company is actively building a strong project pipeline in next-generation sectors such as Solar PV, Green Hydrogen, Carbon Capture, and Semiconductors. With ongoing discussions underway with leading clients, Concord is well-positioned to deliver advanced water solutions that align with the evolving needs of energy-transition industries.

Company overview

We are a global provider of comprehensive water and wastewater treatment solutions, including advanced Zero Liquid Discharge (ZLD) systems. Our in-house capabilities span the entire value chain from solution design and component manufacturing to installation, commissioning, operations and maintenance (O&M), and digitalisation powered by Internet of Things (IoT). We generate revenue through (i) the sale of systems and plants, (ii) O&M services for installed plants, and (iii) the supply of consumables and spare parts. Our turnkey offerings include effluent treatment plants, anaerobic digestors, membrane bio-reactors, sewage treatment systems, and membrane-based technologies such as ultrafiltration (UF), nanofiltration (NF), reverse osmosis (RO), desalination, and waste heat evaporators (WHE). Our digital platforms enable real-time monitoring, preventive maintenance, and operational optimisation, enhancing system efficiency and uptime for our customers.

Global reach prominence

With a strong focus on sustainability and energy recovery, our solutions help industrial clients meet stringent water reuse and discharge norms while minimising operational costs. As of 31 st March 2025, we served over 300 customers across domestic and international markets, including North America, Latin America, Africa, the Middle East, and Southeast Asia. Our customer base spans diverse industries such as pharmaceuticals, chemicals, F&B, defence, energy, automotive, textiles, and steel. Notable clients include Diageo Mexico Operaciones, Grasim Industries, LANXESS India, Anthem Biosciences, Tagros Chemicals, and AB Mauri. We are currently executing international ZLD projects in Mexico and the United States. Our two manufacturing facilities located in Vasai, India, and

Sharjah, UAE support our global delivery and ensure scale and responsiveness.

Quality control, testing and certifications

We maintain high quality standards across manufacturing, installation, operations, and maintenance is fundamental to our growth and customer trust. We have instituted rigorous quality control systems across our facilities, covering the entire product lifecycle from R&D and process innovation to manufacturing, supply chain, customer delivery, and O&M services to ensure consistent performance, safety, and reliability. Every product undergoes a robust qualification process from development to deployment. Test methods, specifications, and manufacturing protocols are standardised and validated using historical data and risk-based assessments. Quality control programs include regular audits, process reviews, and compliance checks to uphold product integrity at every stage. Our manufacturing units in India and the UAE are certified under ISO 9001:2015, reflecting our commitment to global benchmarks in quality management and continuous improvement.

Competitive advantage

Leading ZLD solution provider in India: We are ranked among the top two largest Zero Liquid Discharge (ZLD) solution providers in India by revenue for FY25, with a 43.4% share of the market.

Integrated solutions provider: We offer comprehensive, in-house designed systems and plant solutions, including effluent treatment plants, anaerobic digestors, membrane bio-reactors, sewage treatment plants, and membrane-based systems such as ultra-filtration (UF), nano-filtration (NF), reverse osmosis (RO), desalination systems, and waste heat evaporators (WHE). Our integrated, one-stop-shop approach differentiates us in the marketplace and fosters long-term customer relationships.

Innovation-led approach backed by strong R&D: Our R&D capabilities enable us to develop customised solutions that address specific industry challenges. Ongoing R&D efforts focus on new membrane development tailored to industry needs, module design enhancements, and innovative system technologies. As of 31 st August 2024, our R&D team comprised 25 employees. This expertise has led to the creation of five distinct membrane types and new module designs, particularly suited for high-concentration applications with elevated levels of suspended solids and colloidal particles requiring a greater number of flow channels for optimal performance.

Long-standing client partnerships: We enjoy strong customer retention, with a significant portion of revenue generated from repeat business. This reflects our reliable execution, quality products, and customer-first approach. Our Operations & Maintenance (O&M) and Spares businesses further strengthen long-term client engagement and satisfaction.

Lower OpEx through end-to-end wastewater solutions: ZLD systems offer significant environmental benefits by reducing wastewater discharge to near-zero levels. While initial CapEx is typically higher than traditional systems, our solutions offer considerable OpEx savings over time. Integrated with High pH RO technology, our ZLD systems can achieve water recovery rates above 95%, enabling large industrial facilities to save millions of litres of water annually.

Focused initiatives

Compressed Biogas (CBG): High-strength organic effluent waste presents a valuable opportunity for energy generation through biogas production. Once purified and compressed, this biogas, known as Compressed Biogas (CBG), can be used across diverse applications such as transportation fuel, power generation, and cooking. Leveraging our proven expertise in anaerobic digestion technology, we launched a new business initiative in April 2024 to design and install CBG plants for our clients. These plants convert organic waste such as food and agricultural residues, animal manure, municipal solid waste, sewage, and other biodegradable materials into biogas through anaerobic digestion, a process that breaks down organic matter in the absence of oxygen to generate methane- and carbon dioxide-rich gas. Indias CBG sector is poised for significant growth, propelled by the governments push to reduce fossil fuel imports and enhance energy security. The SATAT (Sustainable Alternative Towards Affordable Transportation) initiative exemplifies this commitment by promoting the use of domestic resources to produce clean, renewable energy. Once purified, CBG offers a viable alternative to Compressed Natural Gas (CNG) and can be used in existing CNG vehicles without modification. With strong policy support, financial incentives, and regulatory momentum, particularly in encouraging sugar mills to use press mud as feedstock, the CBG ecosystem is rapidly evolving. (Source: 1Lattice Report). Our recent flagship projects include biogas recovery from tequila vinasse for Diageo Mexico Operaciones, S.A. de C.V., at their upcoming greenfield distillery in La Barca, Jalisco, Mexico, and the development of a biogas plant for a fermentation-based pharmaceutical company in Tamil Nadu. We aim to scale this vertical by building on our strong track record in anaerobic digester projects, working with project consultants, and establishing a dedicated team to drive CBG business growth.

Green ZLD (Zero Liquid Discharge): Our Zero Liquid Discharge solution, enabled by UHPRO systems and advanced WHE technologies, offers significant energy savings compared to conventional evaporation-based systems, resulting in lower capital and operating costs. We are actively promoting this sustainable and cost-effective offering to our existing clients while targeting new customers planning ZLD implementation. We focus on key sectors such as pharmaceuticals, chemicals, distilleries, steel, energy, automotive, food, and beverages, where we already have a substantial installed base and strong execution credentials. We are also making inroads into the refinery segment, with recent orders including a water block package for a refinery in Mongolia and a Common Effluent Treatment Plant (CETP) project in Rajasthan.

Third-Party O&M: We provide Operations & Maintenance, rehabilitation, and modification services for systems and solutions supplied by third-party OEMs.

Product Membrane Services: We offer end-to-end operations, maintenance, and upgrade services for membrane systems, including those sourced from other OEMs. In FY25, we achieved membrane sales of approximately 77.5 million through our distributor model. We plan to scale this to 300 million in FY26 and target 850 million over the next three years.

Operational performance in FY 2024-25 ?? Successfully onboarded marquee clients across key sectors including aerospace, sustainable aluminum packaging, and compressed biogas (CBG), reinforcing Concord Enviros position as a trusted partner in industrial sustainability. ?? As of 31 st March 2025, we secured 9 patents and filed 21 new applications?€”underscoring its robust innovation pipeline and commitment to proprietary technologies. ?? Marked entry into the U.S. market in FY25, a significant step in Concords international expansion strategy, with further growth anticipated in the coming years. ?? Membrane sales to third-party OEMs reached 77.5 million in FY25. Through its distributor-led model, Concord targets sales of 300 million in FY26 and 850 million over the next few years. ?? Leveraging its anaerobic digestion expertise, Concord launched a dedicated CBG plant business in April 2024. Notable projects include biogas recovery from tequila vinasse for a greenfield distillery in Mexico and installations for pharmaceutical and food processing clients in India?€”focusing on industrial organic waste over agri-residue inputs. ?? As of 31 st March 2025, the total order book stood at 5,327 million: o 62% attributed to water projects o 15% to CBG projects o 23% to operation & maintenance (O&M) services ?? Expanded into third-party O&M services, managing systems installed by other providers. This segment contributed 12 crores in revenue in FY25 and is gaining momentum as a high-margin, stable income stream. ?? Operational activity at the Sharjah facility is expected by July 2026. Tendering for construction is planned for July 2025, following the completion of the architectural design phase.

Financial performance in FY 2024-25

Particulars	FY25	FY24	YoY Change (%)
Revenue from Operations	59,44.39	49,68.59	19.64
Other Income	47.24	148.47	(68.18)
Total Income	5,991.63	5,117.06	17.09
Cost of raw materials and components consumed	2,408.63	1,969.07	22.32
Service Charges	255.19	252.95	0.89
Purchase of stock-in-trade	507.9	371.16	36.84
Increase/(decrease) in inventories of FG and WIP	67.41	(125.18)	154
Employee benefits expenses	852.99	666.08	28.06
Other Expenses	920.3	658.41	39.78
EBITDA	870.82	750.51	16.03
Adjusted EBITDA*	1,039.67	811.47	28.12
Finance Costs	205.15	167.87	22.21
Depreciation & Amortisation Expenses	113.97	162.9	(30.04)
Profit before Tax	644.65	986.72	(34.67)
Tax Expenses	62.72	25.58	87.75
Profit after Tax	581.93	961.14	(39.45)
Profit/(Loss) after Tax from discontinued operations	(67)	(546.75)	-
Net Profit/Loss after Tax for the Period	514.93	414.39	24.26

*The companys EBITDA is adjusted for the discontinued business of Bluewater Trading & Treatment FZE & Forex loss (Peso) The discontinued operations are on account of the winding up of Bluewater Trading and Treatment FZE for having a simpler corporate structure.

Details Of Key Consolidated Financial Ratios

Particulars	FY25	FY24
ROIC (%)	13.60	13.10
Debt to Equity (X)	0.24	0.47
Debtors Days	107	126
Inventory Days	106	113
Creditors Days	84	85
Net Working Capital Days	129	154

SCOT analysis

Strengths ?? Established market presence: We have built a strong brand and a trusted reputation in the water and wastewater treatment sector, backed by a diversified portfolio and geographic reach. ?? Technological expertise: Our strength lies in leveraging advanced technologies and innovative processes to deliver efficient, reliable, and sustainable solutions. ?? Global footprint: With operations across India, the UAE, and other regions, we benefit from access to international markets and reduced dependence on any single geography. ?? Integrated business model: Our end-to-end capabilities from design and manufacturing to installation, operations, and maintenance enable us to deliver greater value, efficiency, and customer satisfaction. ?? Strong Repeat Business: A significant portion of our revenue in FY25 was driven by repeat clients, underscoring our long-standing relationships, reliable execution, and sustained customer trust.

Challenges ?? Revenue concentration: A large share of our revenue is derived from a limited customer base, with the top 10 customers contributing a substantial portion in FY25, which exposes us to potential demand fluctuations.

?? Operational dependency: Our reliance on two key manufacturing facilities in Vasai and Sharjah makes us vulnerable to potential disruptions. ?? Asset-intensive model: Our capital-intensive operations increase our fixed cost base and sensitivity to demand cycles.

Opportunities ?? Rising global demand: Growing environmental concerns and stricter discharge norms are driving global demand for advanced water treatment solutions an area where we are well positioned. ?? Government-led initiatives: National missions like Swachh Bharat and Clean Water for All offer us significant growth opportunities in public infrastructure and sanitation projects. ?? Expansion into emerging markets: Markets across Africa, Latin America, and Southeast Asia present strong potential for expansion, supported by increasing industrialisation and urban water stress.

Threats ?? Intense competition: We operate in a competitive landscape with global and domestic players, requiring constant innovation to retain our edge. ?? Technological disruptions: Rapid advancements in technology demand sustained R&D investment to avoid obsolescence and remain competitive. ?? Regulatory challenges: Compliance with evolving environmental, tax, and safety regulations may increase operational complexity and associated costs.

Human resources

Our people are the foundation of our progress. In FY25, we continued to strengthen our human capital by fostering a performance-driven culture built on collaboration, innovation, and continuous learning. We invested in upskilling programs focused on digital tools, safety practices, and technical excellence to empower employees across functions. Our recruitment efforts emphasised attracting diverse talent aligned with our sustainability mission and growth ambitions. Employee engagement remained a priority, with structured feedback mechanisms and wellness initiatives ensuring a supportive and inclusive workplace. As we scale into emerging sectors and geographies, we remain committed to nurturing a future-ready workforce equipped to drive our long-term vision.

Research & Development

Our research and development is a driver of our innovation-led growth strategy. Our R&D efforts are focused on developing industry-specific solutions that address complex water treatment challenges with a focus on sustainability, efficiency, and regulatory compliance. Our in-house team of 30+ skilled professionals engage in designing advanced membranes, refining module architecture, and creating next-generation ZLD technologies tailored to high-load industrial effluents. Our innovations aim to reduce energy consumption, enhance recovery rates, and optimise performance in demanding conditions. As of 31 st August 2025, we had been granted 9 Indian patents and filed 21 additional applications, reinforcing our position as a technology-driven player. Our R&D team has developed five proprietary membranes customised for different industries and applications. Key breakthroughs include improved module designs for high total suspended solids (TSS) loads, energy recovery through anaerobic digestion, and ammonia removal processes integrated into ZLD systems.

We also focus on lowering the carbon footprint of water treatment by leveraging Waste Heat Evaporator (WHE) systems and proprietary membranes that reduce overall energy demand. These innovations directly benefit our customers by enabling cost-effective compliance with environmental norms, reducing water consumption, and enhancing operational efficiency. Through continuous investment in R&D, we aim to stay ahead of evolving industry needs and global sustainability goals.

Risks and Concerns

Risk management is an integral component of our strategic and operational framework. We follow a proactive, structured approach to identify, assess, and mitigate potential risks that could impact our business performance, financial health, and long-term sustainability. Our risk management systems are aligned with industry best practices and embedded across all key functions to ensure business continuity, regulatory compliance, and stakeholder confidence.

Risks are reviewed periodically by senior leadership and the Board, with oversight from the Audit Committee. This structured governance mechanism helps ensure that mitigation strategies remain dynamic, forward-looking, and responsive to evolving internal and external factors.

Key risks and mitigation measures High dependence on key customers

Definition: A significant portion of revenue is concentrated among a few top clients, increasing exposure to order volatility.

Mitigation: We are diversifying our customer base across industries and geographies, investing in long-term contracts, and expanding turnkey and O&M offerings to create stickier, recurring revenue streams.

Supply chain and raw material risk

Definition: Disruptions or price fluctuations in the supply of critical inputs can delay production and increase costs. Mitigation: We maintain a diversified supplier base, multi-sourcing strategies, long-term contracts, and inventory buffers. We are also investing in local sourcing and digital supply chain visibility tools.

Subsidiary losses and financial support risk

Definition: Loss-making subsidiaries may require continued financial support, impacting consolidated financials.

Mitigation: Performance of subsidiaries is monitored through periodic reviews. Strategic restructuring, tighter cost control, and improved accountability frameworks are being implemented to enhance performance.

Regulatory approval risk

Definition: Delays or failures in obtaining or renewing licenses and permits may disrupt business operations. Mitigation: A centralised compliance team tracks regulatory requirements across geographies. We maintain a strong track record of timely approvals and ensure all applications are submitted well in advance with comprehensive documentation.

Seasonal fluctuations in revenue

Definition: A large share of annual revenue is realised in Q4 of a fiscal, creating seasonality-related volatility. Mitigation: We are gradually expanding our annual maintenance and services business to even out quarterly fluctuations and exploring export-led revenue for a more stable year-round order flow.

Competitive intensity and market share risk

Definition: The industry is marked by strong competition and rapid innovation, risking market share erosion. Mitigation: We continue to invest in R&D, develop proprietary technologies, and enhance customer service. Our focus on energy efficiency, digital solutions, and patented membranes provides clear differentiation.

Information technology

Information technology forms the backbone of our operations. We have adopted comprehensive IT policies and cloud-based enterprise resource planning (ERP) systems across key subsidiaries to streamline critical functions such as sales, inventory, production planning, quality control, plant maintenance, finance, human resources, and EHS compliance. Our use of computer-aided design (CAD) and 3D modeling tools enhances precision in product development. Additionally, we have deployed human resource management systems and implemented automation technologies at our manufacturing facilities to drive operational efficiency. Ensuring data security and business continuity is a top priority. Access to our cloud-hosted systems is secured through firewalls and VPN gateways, with user access managed as per defined IT protocols. Our cloud service provider meets international security standards, including ISO 27001 and SOC2 Type 2. Daily and weekly virtual machine backups are scheduled automatically in line with our Backup and Retention Policy, ensuring data integrity and disaster recovery preparedness. Regular audits and reviews help us maintain high standards of information security and resilience.

Internal control systems and their adequacy

Concord Enviro has established robust and effective internal control systems that ensure efficient resource utilisation, compliance with policies and regulations, and the integrity of financial reporting. These systems form a key pillar of our corporate governance framework, supporting sustainable growth, safeguarding assets, and maintaining transparency and accountability in all business operations.

All major business processes are seamlessly integrated through IFS, enabling standardisation and real-time monitoring. Our internal controls are commensurate with the sise and complexity of our operations and are regularly assessed by both statutory auditors and the Corporate Assurance Team. An independent internal audit firm, appointed by the Audit Committee, conducts periodic audits across locations and functions, evaluating control effectiveness and recommending improvements.

A structured internal audit framework maps control effectiveness through defined indices. Key findings and process enhancements are communicated to the management, with periodic updates and progress on implementation shared with the Audit Committee. The Committee actively monitors the closure of audit recommendations, ensuring continuous improvement in control systems and risk mitigation.

Cautionary Statement

This section contains forward-looking statements that reflect Concord Enviros current objectives, projections, expectations, and estimates, which are subject to the applicable securities laws and regulations. These statements are based on certain assumptions regarding future events and developments. However, there can be no assurance that such assumptions will prove to be accurate or that the stated expectations will materialise. Actual outcomes may differ significantly from those anticipated due to various external factors beyond the Companys control. Concord Enviro undertakes no obligation to publicly update, revise, or modify any forward-looking statements in light of future events or developments.