Va Tech Wabag Ltd Management Discussions.

Global Water Overview

Water, a topmost priority for life, is an indispensable element for global development. The availability of this resource is finite as well as pivotal for life. This shared resource is infinitely valuable and cannot be taken for granted and the pandemic waves have re-established the fact more strongly. Despite this, reliable water supply is not accessible to a quarter of the population globally. (Source: World Bank Report) _

Trends in the global water sector

a) Global warming: Leading to extreme situations of either floods or droughts

b) Burgeoning population: Increasing number of people living in water deficit areas

c) Rapid urbanisation: Straining the water resources and ecosystems

d) Emergence of mega cities: It adds to the challenge of extending water and sanitation services to about 1 billion people living in informal settlements not served by water grids

e) Old and depleted infrastructure: This is creating pressure to accelerate investments in more advanced markets and revive the water infrastructure

What next?

As the world grapples with acute water crisis along with climate change-related challenges, the Water Resources Group, a part of the World Bank is collaborating and entering in to engagements with countries globally to arrest the impact. They are working towards creating a transformation and recommending ways to improve, manage and effectively respond to this situation.

Global Water Treatment Industry

We are in a world where demand for water ‘was?, ‘is? and ‘will? continue to overpower the supply.

The need of the hour is to use the resource wisely and responsibly to ensure its availability to generations ahead. With the rising population and irregular rainfall, the natural processes of purifying wastewater are overloaded. This has led to designing facilities to treat the wastewater through various methods and put it back in the ecosystem. The global wastewater treatment plant market is estimated to be USD 125 billion in 2021 and is expected to rise to USD 179 billion at a CAGR of 6% over 2021-2026.

Global Wastewater Market

The major driving factors of growth apart from irregular rain patterns and urbanisation includes stringent regulations for effluent treatment plants and increasing utilisation of bottled water.

Regional growth drivers


> Fastest-growing market with 61% of the global population residing in this region, leading to rapid industrialisation and urbanisation

> Large-scale investments in India, Bangladesh, China, and South-East Asian countries to improve water quality and sanitation

> Focus on developing activated sludge process-based treatment plants to meet the environmental norms

Global Desalination Market

The Desalination market is growing at a rapid pace, valued at USD 16.5 billion in 2020, is likely to reach USD 28.1 billion by 2026 at CAGR of 9.32% over 2020-26.

^Factors leading to the growth of the desalination market include:

> Declining freshwater resources

> Stringent environmental regulations

> Fast-paced industrialisation and rising need for effective wastewater management systems

> Rapidly growing sectors like agriculture, oil and gas, powerpaper and pulp requires high amount of water

> Rising investments

> Technological developments in the Desalination industry place emphasis on several objectives such as growing the freshwater yield, lessening the production of brine, ensuring energy efficient systems and its appropriate disposal

> Projected water demand of 25 billion m3 by 2050 for H2 production

> Growing adoption in coastal regions for municipal and industrial use

Water trends across regions

Asia-Pacific Region

The Asia Pacific region has achieved a remarkable growth in economic and social welfare over the last few decades. However it has not achieved water security, a cornerstone for inclusive and sustainable growth. The region has been burdened with water related challenges along with natural disasters devastating human welfare and growth.

Quick facts

More than half of the global population resides in Asia

Population is likely to rise by 500 million people over the next 10 years

Urbanisation to reach 60% over the next 10 years

Fresh water availability per person is 3,920 cu metres per person vs. global average of 7,000 cu metres

Strategies for water security

The Asian Development Bank, World Bank, JICA and other large institutions through continuous thought leadership is developing policies and tracking the water security progress in the region.

The vision is to have net zero emission by 2050 and work towards building solid water secure foundation.

The Asian Development Bank is focusing on the following:

(i) Rural household water security (water and sanitation)

(ii) Economic water security (water to sustainably satisfy economic growth)

(iii) Urban water security (water and sanitation and flood management)

(iv) Environmental water security (catchment and aquatic health and environmental governance)

(v) Water-related disaster security (resilience against droughts, floods, and storms)

A step towards water security for tomorrow

> The Delhi Government plans to adopt water treatment model, similar to that of Singapore. The water from Sewage Treatment Plants will be treated as per quality levels and then released in the river Yamuna.

> India aims at revival of 200 water bodies in the capital and increase the groundwater level in the surrounding areas.

> The Australian Government announced its contribution of USD 10 billion to support cooperation between Australia and India on urban water security.


> By 2030, Malaysia is planning to invest towards reviving and building new water infrastructure with a tentative investment of USD 3.6 billion.

> The sewage sector in Malaysia is likely to attract investments to the tune of USD 240 million for new projects.

(Source: Royal Danish Embassy in Malaysia)


> The Philippines Government has chalked out Philippine Water Supply and Sanitation Master Plan sewage sector which entails a total over Peso 734 billion over 2020-2030 to avail water universally to all and meet the development needs.

(Source: BWorld) sector-needs-p1-t-investment-until-2030/

> Mongolia plans to invest USD 300 million for wastewater management for power plants.

> The World Bank is supporting Bangladesh with USD 200 million to help 3.6 million people with access to hygiene and clean water.

India?s Waterful Facts

India is a land of exponential growth, a land of one of highest working population below 35 years, India is one of the fastest-growing economies of the emerging world and also the leading largest extractor of groundwater globally to the tune of 25%. This is on account of an imbalance of water?s demand and supply, inefficient water management, climate change and burgeoning population and out of control pollution. If the consumption rate continues at the current level, only half of the water than required will be available by just the next 10 years.

Wastewater generation

As per the latest report of Central Pollution Control Board, India has generated 72,368 MLD of sewage. Out of this, only 20,236 MLD was treated. In fact the total capacity installed can be utilised to treat only 28% of sewage generated. Owing to this need this segment is projected to witness strong growth. The Wastewater Treatment Plant market size is estimated to be USD 15 billion in 2021 witnessing a CAGR of 6.9% over 2021-26 to reach the size of USD 21 billion.

The Government is taking various initiatives in the water management space. For an Atma Nirbhar Bharat or a Self-reliant India, water security is of utmost importance. The Government has launched a slew of programmes to ensure water security and water sustainability.

Namami Gange Programme

Salient features

> Aims to provide household water tap connections including the 500 cities under AMRUT and its ongoing projects

Salient features

> Mission to provide safe and adequate drinking water through individual household tap connections by 2024 to all households in rural India

> Development of piped water supply infrastructure, reliable supply source and treatment plants

> Recharge and reuse through grey water management water conservation

> Rain water harvesting

Swachh Bharat Mission (Urban) 2.0

National River Conservation Plan

To ensure a circular economy and sustainable industrial renaissance proactive measures are designed to help mitigate challenges. Apart from the Government initiatives, there are a host of other initiatives ranging from desalination plants, modernisation of STPs, one city one operator programme to reuse and recycling policies. All are directed towards efficiently managing and integrating functions to safeguard against water-related hazards.

Middle East & Africa (MEA)

Middle East and Africa are the most vulnerable regions when it comes to water scarcity. Of the 17 most water-stressed countries of the world, MEA holds the 11th position. Water scarcity combined by inadequate water management initiatives, rapid depletion of groundwater and impact of climate are adding on to the pressure. Additionally, conflicts in Syria, Yemen and Sudan, migration of people from rural to urban areas have also added to the water scarcity.

A step towards water security for tomorrow

Recycling opportunity

> 82% of the region?s wastewater is not reused, harnessing this resource would generate a new source of clean water.

> 84% of all wastewater collected in Gulf Cooperation Council countries (Bahrain,

Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates) is treated to safe levels, but only 44% goes on to be reused

> USD 2.5 billion is allocated by the Government of Egypt towards new desalination policy

> Egypt sets USD 50 billion water management programme which can be further increased to USD 100 billion till 2037; this programme aims at improving water quality, developing new water resources, and rationalising the use of available resources


The European market is moving one step ahead with smart water management programs. The market valued at USD 2.1 billion is estimated to reach USD 4.8 billion by 2025 registering CAGR of 12.9% over 2018-2025. EU is witnessing steady increase in demand for water on account of growing population. The nation has always been proactive in managing resources. However, climate changes, depleting groundwater have elevated the risk of water unavailability. The EU has released a regulation on minimum requirements for water reuse in 2020.


> Harmonising minimum water quality requirements for safe reuse for agricultural irrigation

> Increased efficiency of water utilisation

> Reduction of water stress and drought

> Contribution to food safety and environmental protection

> Creating an instrument for tackling climate change

>The per capita renewable water resources has dropped by 24%

^ Water scarcity affects 17% of the EU

A step towards water security for tomorrow

> USD 150 million invested towards better potable water and wastewater system

> USD 1.2 billion upgrade programme to enable Elimination of Micropollutants

ESG focused - Sustainable & Responsible Business Practices


> Providing Safe Potable Water through our WTPs & Desalination facilities

> Ensuring healthy ecosystem though our Wastewater Treatment & Water Recycle facilities

> Reducing Carbon footprint by generating Green Energy


> Employing & training 1,500+ Water professionals across the globe

> Implemented 22 CSR projects with sectoral focus on Water, Sanitation and Skill Development

> Created over 17,000 Green jobs


> Water & Environment integrated in strategic business plan

> Alignment to UN SDG 6 (Clean Water & Sanitation for all)

> Board level oversight on ESG-related issues through Executive Committee


VA TECH WABAG is one of the few companies, consciously acting towards the circular economy and directing all our efforts to resolve the nature?s cry to save water. With a legacy spanning over 90+ years, the Company stands tall as a diverse water technology player, offering a spectrum of comprehensive solutions across diverse sectors.

With strong R&D, backed by cutting edge technology, we have evolved as system specialists. We provide engineering, procurement, construction, and O&M services, meeting the critical needs of the municipal and industrial segments.

Till date, we have executed 6,000+ projects across 25+ countries serving the Indian sub-continent, Middle East & Africa, Europe region and South-East Asian markets. We have been able to touch over 500 million lives, by meeting their need for clean and safe water.

India cluster

> India

> Bangladesh

> Cambodia

> Indonesia

> Laos

> Malaysia

> Myanmar

> Nepal

> Philippines

> Singapore

> Sri Lanka,

> Thailand

> Vietnam J

>Middle East and Africa (MEA) cluster

> Kingdom of Saudi Arabia ^

> Bahrain

> Egypt

> Libya

> Nigeria

> Oman

> Qatar ^

> Tanzania

> Namibia

> Tunisia


Europe cluster

> Austria

> Czech Republic

> Romania

> Switzerland,

> Turkey

> Russia


> Proven track record of handling large and complex projects

> Enjoys leadership position in various key markets in water management services

> Among the leading players, with significant market share in the advanced technology segment

> Ground-breaking innovations with several patents to its credit


> Presence across various business formats EPC, DBO, BOOT, O&M, HAM and One City One Operator

> Timely project execution

> Experienced and highly qualified team, along with the Austrian unit with a strong execution track record and sound technologies with an international approach.

> R&D Management Competence Centre including special R&D projects (e.g. removal of antimicrobial resistance)

> Emphasis on providing EPC and O&M services to the municipal and industrial clients primarily across oil & gas sector

> Expertise in providing complex water technology solutions to the oil & gas and food & beverages sector

> Expertise on conventional power plants and also nuclear power plants, especially for water solutions for the secondary circle


> Offers world class technology at competitive prices

> A unique mix of talented professional and energetic team

> Offers customised total water solutions

> Rich experience in operating and maintaining refinery and industrial ETPs


> Efficient human resources team aligned with the common goal and essence of ONE WABAG

> Proficiency in pre-treatment systems, demineralisation, condensate polishing, ion exchange technology, cooling water treatment, filtration and neutralisation


> Leveraging opportunities across the water management value chain with capability, competency and reliability

> Serves as a central point, catering to industrial and municipal clients projects across countries

Building Excellence with Experience

A glimpse of few of our flagship projects

Integrated ETP for the Refinery and Petro Chemical Complex RAPID at Johor, Malaysia, one of the largest lETPs worldwide, treating in total over 1,02,000 m3/d. T

> 45 MLD Koyambedu TTRO Plant, Chennai, the first Water Reclamation Plant to reuse municipal treated waste water for industries in south India.

> Turnkey completion of 400 MLD Drinking Water Treatment Plant, Kavaklidere, Izmir, Turkey.

> Zermatt WWTP - underground MBR for famous Swiss-ski tourism.

> World?s first Wastewater Treatment Re-use Plant, converting effluent into ultra-pure demineralised water at Panipat.

> World?s first Purified Terephthalic Acid (PTA) plant, along with other petrochemical effluent treatment, through UASB process followed by MBR UFRO Wastewater recovery for reuse at Reliance Dahej.

> Asia?s largest Wastewater Treatment plant for the 20 million tonne Reliance Refinery at Jamnagar.

> India?s largest Seawater RO plant (110 MLD) at Nemmeli, Chennai on DBO basis, meant for 100% potable use.

> The Kodungaiyur STP Power Neutral Plant in India, leads in achieving the milestone of completing over 1,00,000 hours on a single gas engine.

> The largest single train 28 MLD Seawater Desal Plant (UF-RO) at Reliance at Jamnagar Refinery.

> Building STP for the University Diliman, Quezon City employing innovative NEREDA? Technology for the first time at the Philippines.

> WTP retrofit project, 900 MLD La Mesa-2 for Metro Manila, the world?s ninth largest drinking WTP.

> Desalination plant for supply of potable water with a capacity of 192,000 m3/day in Muscat, catering over 5 lakhs people.

> 2x40 MLD Water Reclamation plant for Madinaty - a new satellite city near Cairo, Egypt.

> World?s first and unique direct potable water reuse plant, the new Goreangab WTP at Windhoek, Namibia.

> The first industrial reuse and wastewater MBR plant in Ujams Industrial Park, Windhoek, Namibia.

> Muttenz WTP, Switzerland, an innovative design for the safe removal of micro pollutants make it a unique plant in Europe.

> Energy-neutral municipal WWTP at Sanilurfa, Turkey (140,000 m3/d turnkey, employing innovative solar sludge drying system).

> Innovative treatment system for produced Water for Romania?s largest oil field Suplacu de Barcau.

> 191 MLD SWRO (Desalination) Plant, Al Ghubrah, Oman - Largest desalination plant in the country of Oman.

> Al Madina Al Shamaliya 40 MLD Sewage Treatment Plant, Bahrain - STP Plant with Tertiary Treatment which caters to

l the entire irrigation water requirements. ,

India Cluster

Key highlights

> Secured an Engineering and Procurement (EP) order worth USD 165 million (about INR 1,230 crore) from Amur Gas Chemical Complex LLC., (AGCC) in Russia. This technology dominant breakthrough order in the CIS region, especially in the Russian Federation also marks WABAG?s largest order in the oil & gas sector

> Secured an order worth USD 11.45 million from Dialog E&C Sdn. Bhd., Malaysia towards establishing a new Effluent Treatment Plant (ETP) for Pengerang Integrated Complex in Johor, Malaysia. This order was secured based on our technological pre-qualifications with PETRONAS

> Secured another HAM order from Ghaziabad Nagar Nigham (GNN) for 40 MLD Recycle and Reuse TTRO plant. First of its kind order in India which is financed by Municipal bonds raised by GNN

> Successfully completed 30 MLD SWRO plant for Mangalore Refinery Petrochemical Limited

Middle East & Africa (MEA) Cluster

Key highlights

> Setting up of Water Treatment Plant at Kaseeb from Societe Nationale D?exploitation Et De Distribution Des Eaux (SONEDE), Tunisia funded by KfW, the WTP is being built using advanced Lamella Clarifier technology. This is a repeat order from SONEDE

> Received FAC for 80 MLD WTP El Raswa ll at Port Said, Egypt employing advanced technologies to treat water from River Nile for portable water supply to a population of over 5,00,000

> Setting up of 300 MLD Independent STP at New Jeddah Airport, Saudi Arabia with the state-of-the-art NEREDA? Technology for the first time in the region

> Setting up of Rehabilitation of South Doha Sewerage Treatment Facility using clarification, filtration and aerobic digestion technologies for Public Works Authority (ASHGAL), Qatar

> Setting up of 120 MLD large scale STP for Jubail Industrial City, Saudi Arabia being implemented for MARAFIQ

Europe Cluster

Key highlights

> Successfully completed installation of first NEREDA? system in Germany at Altena WWTP

> Large-scale order in the field of Elimination of Micropollutants in Wastewater: WABAG Switzerland was awarded the contract to build the 4th treatment stage for the municipal WWTP Aire (300,000 m3/d) in Geneva employing the BIOZONE? process

> Design and supply of the electromechanical equipment for the municipal WWTP at Stefanestii de Jos, Ilfov County

International Engineering Centre (IEC)

WABAG?s International Engineering Centre in Pune and Vadodara provides design and engineering services to the Company?s EPC business under the banner of Wabag Engineering Services.

This centre is equipped to deliver world-class cost-effective engineering services. It has competent team of engineers and state-of-the-art software to attract global engineering business. IEC provides services to oil & gas, power, fertiliser and steel industries across the globe.

IEC has provided engineering services to prestigious clients like Sibur (AGCC), IOTL, Marafiq, Kuwait National Petroleum Company, Aramco, Dangote, HMEL, SSEM, SONEDE, PETRONAS & Thai Oil.

IEC continues to support engineering for WABAG office in other clusters from both onshore and offshore. Innovation has always been IEC?s focus to improve on existing equipment design and for processes to ensure productivity in terms of time and cost. IEC has developed innovative designs to improve on performances and maintainability of their existing range of equipment.

Financial Performance

The order book during FY 2021-22, stood at the highest at INR 10,107 crore.

On a Consolidated basis, the Group?s income stood at INR 3,011 crore in FY 2021-22, as compared to INR 2,842 crore in FY 2020-21. Profit After Tax for FY 2021-22 stood at INR 132 crore.

On a Standalone basis, income for FY 2021-22, stood at INR 2,170 crore as compared to INR 1,852 crore in FY 2020-21. Profit After Tax reported for FY 2021-22 stood at INR 92 crore.

The key metrics of the year under review as per SEBI Regulation were as follows:

> Debtors Turnover ratio: 1.65 times

> Interest Coverage ratio: 3.86 times

> Current ratio: 1.37 times

> Debt Equity ratio: 0.28 times

> EBIDTA and Net Profit margin stood at 7.95% and 4.43% respectively and return on Net Worth at 8.64% for the FY 2021-22.

The Company?s Internal Control Systems and their adequacy are elaborated in the Board?s Report forming part of this Annual Report.

A Brief on Human Capital

At WABAG, our people are our priority. As an effort towards empowering our employees, the following initiatives were taken and implemented through the year.

Extra Milers Programme (EMP)

A programme intended to identify potential talent among trainees who come through Graduate/Executive training programme. The objective of this programme is to build junior management level leadership pipeline. Selected Extra milers will get a sponsorship to a premier institute for a week long basic leadership skills training programme followed by an Individual development plan which will be facilitated for their growth in fast track.

Young Entrepreneur Programme (YEP)

A program intended to identify potential talent among young engineers/executives of the Company and develop functional /business managerial capabilities. The objective of the program is to build middle level leadership pipeline.

Leadership Excellence Programme (LEX)

A programme intended to identify potential talent among Manager/Deputy General Manager of the Company and to develop functional/business managerial capabilities. The objective of the programme is to build senior level leadership pipeline.

Emerging Leader Programme (ELP)

Though we have YEP in the middle management level, only 4-5 members are getting selected through this programme. Hence, to broaden the base, we have initiated another programme called Emerging Leader programme in the age group of 29 to 40 years. The objective of this programme is to identify emerging talents in the middle management level and build leadership capability.

Hi-Pot Programme

To strengthen the leadership pipeline of our Organisation.

We have developed a very strong programme in this regard under the Global Talent Architecture framework, where we are identifying the Hi-Potential (Hi-Pots) leaders who can take on higher responsibilities and larger roles.

By this programme, we are covering various aspects of Leadership Management such as Individual Development Plans, Succession Planning and their periodic & continuous monitoring through focused mentorship from business leadership and the talent managers within HR.

Quality, Health, Safety and Environment (QHSE)


Our constant focus is on improving our efficiency through delivering high quality services to our customers. We proactively seek to understand their needs and priorities. Based on our understanding, we make the most of new technologies and innovation to work on appropriate improvements. We aim to ensure that procedures are effective, understood and applied. We continuously strive excellence in all process.

We focus towards Quality product, Quality service and Quality performance and first time right.

Client feedback matters to us and hence, we conduct a Client Satisfaction Survey, every year.

The FIFO was implemented in the EPC sites and operational and maintenance of the plant along with the work procedure. During supplier registration process, we do check the process, their certification, credentials and so on.

The vendor portal system is well established where core process and multi activities take place in the software portal in the single system.

During the year, a remarkable improvement was seen in our customer service performance. This was due to our stringent policies placed at right place to provide quality services. With the help of professional experts and a proactive approach, we constantly make an effort to deliver the superior quality at every stage of the project.


WABAG?s policy is to provide and maintain a safe working environment while preventing injury and ill health, wherever possible. COVID-19 related protocols are followed in all our projects and at Operational plants. Vaccination drive continuously strive to achieve above 95% and continuously monitoring all the sites. Medical camps are conducted at the sites to ensure the health and safety of the employees.

We continue to target improvement through training programmes. Various initiatives like campaigns for first aid, general health check-up for all the employees and workmen, heat stress prevention to promote awareness and prevent illness have been undertaken at regular intervals. Essential health-related topics are shared with employees via toolbox talk on a daily basis. We strive for the highest standards of safety to achieve our objective of an accident free environment. Several health camps are conducted at regular intervals at the EPC, BOOT/HAM and O&M sites for all. To enhance learning and cascading the safety awareness, E-learning programme has been launched for employees for self-training and certification. We are committed to provide a safe place for our people to work where health and well-being comes first.


The FY 2021-22 commenced with volatility on account of major lock-downs to contain the spread of COVID-19 globally followed by emergence of new COVID-19 variants prolonged the pandemic and induced renewed economic disruptions during the year.

Social distancing, work from home, sanitisation, thermal checks and an additional impetus on the health and safety have become the new normal of the same world. Managing information, security, infrastructure, productivity and coordination added to the challenges encountered by every industry.

VA TECH WABAG is no stranger to challenges and adversities. The Corona crisis compelled Governments across nations to rightly prioritize life over everything else. An event of such scale impact puts to test the core strengths of any organisation.

WABAG has time and again demonstrated its abilities to adapt to the changing realities. Continued measures were taken to ensure safety, health and well-being of all our employees and other stakeholders across the organisation. We adhered to all protocols laid down by the Governments across all our operational sites:

> High level steering committee was formed comprising functions, disciplines and management to respond to the situation

> Specific SOPs were implemented and monitored across sites

> Social distancing was maintained

> Washing hands at regular intervals

> Sanitizers were kept at all entry and exit gates

> Thermal scanning at entry and exit from sites

> PPE kits were provided

> Employees were asked to immediately report in case of any symptoms

Business Continuity

WABAG operated hundreds of plants across globe, during lock-down both in India as well as in other countries.

We have ensured uninterrupted supply of drinking water and treatment of sewage/effluent. Thereby fulfilling our commitment of protecting environment even during tough times.

Our world-class IT systems enabled seamless remote working during lock-down which ensured business as usual.

Workplace hygiene, continuous awareness (SOP), vaccination drive are facilitated for our direct and indirect employees to ensure workplace safety.

At our construction as well as O&M sites, employees were provided with well sanitised accommodations, safety measures and all essentials within the project premises to restrict the movement and to avoid the risk of infection.

Multiple weeks of business trips are reduced to few hours of digital interactions with employees as well as customers.


> Achieved 4 million Safe man-hours at WABAG?s Polgahawela Water Supply Project, Sri Lanka, on September 17, 2021.

> Achieved 4.5 million Safe man-hours at WABAG?s Guru Gobind Singh Polymer Addition Project, HMEL Bathinda, on September 30, 2021.

> Achieved 3 million Safe man-hours at WABAG?s 30 MLD SWRO Desalination Project, Mangalore, on November 7, 2021.

> Achieved 6 million Safe man-hours at WABAG?s 16 MLD Sewage Treatment Project, OWSSB Odisha, on February 22, 2021.

The projects and the corporate office celebrated the 50th National Safety Week with all the Stakeholders? participation. This year, a new initiative has been taken by the Company to promote and encourage hazard reporting and conduct HSE awareness communication, etc. every week we conducted Safety Friday training and the daily monitoring of Safety data sheet and HSE assessment Index is well-established in the organisation.

Assessment of the same is done on a monthly basis. The QHSE Passport has been updated by the department to circulate to all our engineers; this is aimed at continually developing the professional capability of our workforce in the matters pertaining to QHSE.

The HSE Performance of sites is monitored through a well-developed internal and external audit system. We periodically review our Integrated Management Systems to improve efficiency and effectiveness.


The Environment Management System is well established and implemented in the EPC and O&M sites. We are implementing World Bank /IFC guidelines and performance standards.

> Participated for CDP related with Water and initiated with ESG & Sustainability goals

> Participated in CII-EHS excellence awards and bagged Gold & Silver award

> Performance monitoring in the sites related with resources like energy consumption, optimisation of resource, re-cycle and re-use

> Received CII-IIBC Green Building Certificate for WABAG HOUSE Corporate Office

Various initiatives have been taken by the Company for improving sustainability and EHS matters.

The main objectives are to:

> Process and product characteristics within the permissible limits stipulated by SPCB/CPCB/Client requirements.

> Optimisation and effective usage of resources

> Waste management

> Water management

> To avoid land contamination

> Reduce reuse recycle recovery

All our sites and plants are inspected by the external agency at regular intervals. This helps us to keep a check on the necessary measures to be taken for the air and water quality and noise levels as well. We have achieved CII EHS Excellence awards and IGBC by implementing best practices.

Information Technology

Ongoing efforts are directed towards making WABAG digital & more secured by adopting various digital initiatives.

Digital initiatives

> Implementation of ERP Upgrade - Work in Progress

> Implemented Mobile-enabled geo tracking & geo fencing system for real-time tracking of field workforce

> Digitization initiative to automate the Operations & Maintenance Process with minimal manpower is in progress

> Implemented advanced backup solutions for safeguarding business critical data implemented

> NextGen Antivirus solutions with advanced features to safeguard business from IT security threats

> Upgraded the IT Infrastructure - Virtualisation Environment

> Consolidated & upgraded Email servers across globe

> Automated BOQ control for Engineering Function

> Implemented Zero-Trust Solution to enhance the Security posture

Research & Development


CERAMOZONE? pilot plant is a combination of the CERAMOPUR?-pilot plant and the Ozone pilot plant which

was transported from Vienna to Pappankalan STP, Delhi.

The Pilot tests were planned to be started in the FY 202021, at Pappankalan STP, Delhi, for indirect potable water reuse. However, due to Covid-19 pandemic it could not be done until FY 2021-22. Now, it is planned to continue in FY 2022-23. It has a high mid-term potable reuse market potential (India, South Africa, Botswana, Namibia, Brazil, USA, Singapore, Australia, etc.). A patent has been granted for this process.


DAMOPUR? is WABAG?s technology for the Deammonification process (Ammonia removal) in side and mainstream. The detailed engineering of the main stream pilot plant is in progress and the construction of the pilot planl was planned in the FY 2020-21, and planned to start the pilol tests at Delhi/Kondli STP in the FY 2021-22. However, based on the results of Ph.D. study at EAWAG at Switzerland the plan is switched to go to lab scale study first and the basic engineering for the same is in progress and the construction of lab scale plant is planned in the FY 2022-23, and will be operated in India and/or Egypt.

Membrane Distillation (MD)

The Pilot tests at Panipat Refinery (IOCL) were completed in 2018. The pilot plant is currently at Chennai/Nemmeli Seawater Desalination Plant for potential pilot tests for further recoveries from SWRO Brine and from RO reject at IOCL Paradip refinery. However, due to Covid-19 pandemic the studies did not progress and now it is planned to carry out in the FY 2022-23. The technology for Zero Liquid Discharge/ZLD (or minimum liquid discharge/MLD) which has an increasing market potential has several advantages against classical evaporation. Membrane distillation crystallisation patent was granted in November 2021. This new technology has potential of a breakthrough technology within ZLD/MLD processes.

Hard Chemical Oxygen Demand (COD)

Hard COD removal by BIOZONE? - The Pilot tests at HMEL Bathinda, Punjab, were partially completed in 2018, the pilot plant is brought to Chennai due to non-availability of site. Currently, it is lying at the WABAG warehouse in Chennai. The important add-on as COD discharge has been limited for industries, viz. IOCL Paradip, RIL Dahej, HMEL, etc. it is planned to restart the pilot studies at Chennai itself. Hence, after COVID-19 outbreak, potential pilot tests were planned

to be started at Chennai Koyambedu Water Reclamation Plant for RO brine treatment/oxidation of hard COD, micropollutants and antimicrobial resistance in the FY 2022-23.

Frauenkirchen, Austria - Micro-pollutants Removal

Micropollutants removal by ozone and activated carbon (CARBOPUR? and BIOZONE?) - The Pilot tests were completed by WABAG Austria in cooperation with the Vienna University of Technology in fall 2019 at Frauenkirchen,

Austria. The Final report "Advanced purification of Municipal Wastewater with ozone and activated carbon to remove organic trace substances - toxicology and general applicability" was published by the Austrian Federal Ministry of Agriculture & Water in May 2020. Special research: Genotoxicity (bacterial mutagenicity/ AMES tests and hepatocyte/Comet assay) and bioassays (cyto-toxicity, estrogenicity, and others). The full scale project which was interrupted due to COVID-19 will be continued. However, increasing water stress could have an accelerating effect.

Antimicrobial Resistance Project

Antimicrobial resistance in water reclamation and reuse - The project has been carried out by WABAG Austria in cooperation with the Vienna University of Technology to assess the efficiency of conventional and advanced treatment technologies in removing Antibiotic Resistant Bacteria (ARB) and Antibiotic Resistant Genes (ARG) at the New Goreangab Water Reclamation Plant (NGWRP) in Windhoek, Namibia. The paper ‘Fate and persistence of antibiotic-resistant bacteria and genes through a multibarrier treatment facility for direct potable reuse? in the IWA Journal of Water Reuse was published in September 2021 (final paper) and will be presented at the 13th IWA International Conference on Water Reclamation and Reuse at Chennai, 15-19 January, 2023.

Micro-sieving full scale plant execution at Switzerland, pilot tests in Germany

MICROPUR-CAS? - Pilot tests were successfully completed in Q1 of 2017 at Birsig/Therwil, Switzerland, to reduce the organic load to activated sludge process. The contract for full scale plant at Birsig STP in Therwil was awarded in Q4 of 2019. This contract is under execution, however the start-up has been postponed by the client for a year to 2023. The pilot tests at Nidda, Germany, were successfully completed in Q4 of 2019. The additional pilot tests at Aarbergen, Germany, are ongoing and will be completed in 2022.

Risk Management

The Company faces a number of risks which, if they arise, could affect its ability to achieve its strategic objectives.

The Board is responsible for identifying principal risks and ensuring appropriate risk mitigation is in place to manage them effectively.

Successful management of existing and emerging risks is essential to the long-term success of the Company. WABAG has established a risk management framework, to identify significant risks and determine whether they are being mitigated properly.

From tendering stage till closure of projects, the Company identifies both internal and external risks. During execution of these processes, a continuous risk monitoring system, is being followed, Enterprise Resource Planning (ERP), which helps us make more prudent decisions.

Our risk identification and management activities are continuous and ongoing. Each functional area is responsible for assessing, articulating and controlling relevant risks.

This includes scanning of the internal and external business environment to identify and review new and emerging risks. Such risks could lead to a future impact or emerging circumstances of existing risk, affecting the exposure in the short to medium-term. Risk events are assessed in their current state for the likelihood of occurrence, based on the level of threat and the vulnerability of controls. When we are not satisfied with current state of our general risk appetite or when we can present an unacceptable risk in relation to a specific risk appetite, we determine an appropriate risk

exposure as a target state. We further develop mitigating measures to deliver this within a definite time frame. Risks that are part of our risk register have been re-evaluated during pandemic and been thoroughly analysed for change in risk grading.

Additional risks like safety, productivity, working capital, among others, which are attributable only to COVID-19 pandemic are included and appropriate mitigation strategy has been put in place. These are visible in our year-end results.

Risks are identified by the Board, Audit Committee and Risk Management and Monitoring Committee. These bodies ensure effective risk management across the Group Risk framework of WABAG. This is based on the concept of ‘three lines of defence? wherein the management control is the first, oversight functions established by the Management and independent assurance.

The CMD & Group CEO identifies various operational, business, commercial and external risks and implements processes to address them. Also, periodic review and audit are also conducted to mitigate these risks.

WABAG continues to adapt and plan for climate change. We continue to plan and prepare its significant and permanent impacts on the water cycle, our operations and the broader operating environment. This includes consideration of the long-term viability of water and wastewater services such as water abstraction, drinking water supply and treatment capability, drainage and sewer capacity, wastewater treatment and its discharge efficiency and effectiveness.

Cautionary Statement

The Management Discussion and Analysis contains ‘forward looking statements?, identified by words like ‘plans?, ‘expects?, ‘will?, ‘anticipates?/ believes?, ‘intends?, ‘projects?, ‘estimates? and so on within the meaning of applicable securities laws and regulations concerning WABAG?s future business prospects and business profitability. All statements that address expectations or projections about the future, the Company?s strategy for growth, product development, market position, expenditures and financial results, are forward-looking statements. All these prospects are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, ability to manage growth, competition (both domestic and international), economic growth in India and the target countries worldwide, ability to attract and retain highly- skilled professionals, time and cost overruns on contracts, ability to manage international operations, Government policies and actions with respect to investments, fiscal deficits, regulations, interest and other fiscal costs generally prevailing in the economy, etc. Past performance may not be indicative of future performance. The Company does not undertake to make any announcement in case any of these forward-looking statements become materially incorrect in future nor shall the Company update any forward-looking statements made from time to time by or on its behalf.