Transcript Slide 1

INDIAN WATER INDUSTRY
Water Crisis
• Global Scenario
– Water a scarce resource of future
– It’s a global problem now
– In the past month 2000 Indian Farmers arrested for stealing
water
– A regional government of Spain (Catalonia) is going to import
water by boat and trains in summers
– Queensland Water Commission of Australia put local residents
on the toughest water restrictions
– In Atlanta residents filed a Law suit against the Municipal
government.
– It is said that water will be one of the greatest human challenges
of the early 21st Century
Water Crisis
• Business Opportunity
– Any crisis is the business opportunity for the Industry
– US is expected to invest around US$ 1.2 trillion on repairing and
upgrading its water management infrastructure.
– The companies like Kurita Water industries of Japan, Gebert in
Switzerland making money in infrastructure equipments
– Halma of Britain in sensors detecting leaks in water and
sanitation pipes
– Aqua Dyne of Australia in water purification, H2O Innovation of
Canada in water and waste management through sledge and
membrane bio-reactor technologies.
– An index of 50 stocks of companies involved in water related
business has gone up be an average of 24% per year over five
years through 2007 (source Bloomberg)
– It is now viewed as an infrastructure investment.
Indian Water Industry
India Water
 India is now realizing the need of water management in the country and effective measures have been
started by the Government to manage the most important resource.
 Water is one of the most important needs of living things. And only 0.007% of drinking water is available
in form of ponds, lakes & reservoirs.
 The geographical area of India is 329 million hectares
 India stands II in land water resource with 113 large & medium rivers, flowing across 29,000 Km
 Mean Annual rainfall in the whole country is 1170 mm which gives annual precipitation of about 4000 Km³.
 Agriculture and irrigation are politically sensitive sectors where government don’t prefer much interference
specially when it is for a price.
Water issues in India
 Growing population and rapid urbanization, severe strain to country’s natural resources.
 Contaminated by industrial effluents, domestic sewage and agricultural runoff.
 Pure water supply, but gross disparity in coverage exists
 Unsafe water spread 21% of communicable disease
 Diarrhea alone causes more than 1,600 deaths daily
India Water
 Hygiene practices is a big problem.
 Inefficient use of water in irrigation and the consumption can be brought down by efficient technology.
 Farmers are having a hard time finding ground water to grow their crops in some areas
 With rapid urbanization domestic water purification industry is expanding operations
 22000 millions lt. per day of wastewater get no treatment
 Technology required for solid waste management
 Measures to reduce the demand by adopting processes with minimum use of water, recycle and re-use
etc.
 Develop technology to figure future requirement of water in industries
 Financial challenge of rehabilitating and maintaining its stock of water infrastructure.
Multi-Sectoral water use scenario and demand assessment
Irrigation
 India cultivable area: 184 m ha which is about 12.7 % of world’s cultivable area.
 The ultimate irrigation potential been assessed as 140 million hectare
 58.50 m.ha. by major and medium irrigation projects,
 17.40 m.ha. by minor surface water schemes
 64.10 m.ha. by ground water schemes
 Presently irrigation sector consume 83 % of available water resources
Multi-Sectoral water use scenario and demand assessment
Domestic
 Discharge of untreated domestic and industrial wastewater is predominant source of pollution of aquatic
resources in India.
 Urban centers contribute most of the sewage generation in the country.
 Country harboring population generate about 29000 million litre per day (mld) of wastewater out of which
only 7000 mld of wastewater gets some kind of treatment.
 economic benefits of drinking water and sanitation targets on households and the health sector amounts to
$ 84 billion per year which reduce health care cost, illness & death
Urban Water Supply & Sanitation
 Out of total population urban is about 285 million, which is 27.8 % of the total population living in 5161
towns.
 Expected to reach 433 million by 2021
Multi-Sectoral water use scenario and demand assessment
 Solid Waste Management (SWM) is a part of public health and sanitation.
 The Urban Local Body undertakes the task of SWM service delivery, with its own staff, equipment and
funds.
 In some cities SWM is contracted out to private enterprises.
New programmes by state Governments are eligible for implementing infrastructure facilities such as water
supply, sewerage, drainage and solid waste management etc.
(i) Indian economy is growing with new township, colonization and massive development of metro and tire I
cities. In sequence government of India has launched Jawaharlal Nehru National Urban Renewal Mission
(JNNURM) for which $15 billion funds have been year marked for 59 big cities. The part of development
process will be integrated water system, development of sanitation, water treatment projects.
(ii) Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT).
Implementation: 2005 to 2012
Multi-Sectoral water use scenario and demand assessment
Rural Water Supply and Sanitation
 More than 85 percent of rural water supply is ground water based and consumes about 5 percent of the
total annual replenish able ground water.
 Major Issue: Sanitation coverage
 Only 14% of rural household have toilets
Multi-Sectoral water use scenario and demand assessment
Industries
 Urbanization and industrialization of the country has increased substantial demand for water.
 The industrial water requirements as estimated by the NCIWRD are 37 BCM, 67 BCM and 81-103 BCM for
the years 2010, 2025 and 2050 respectively.
 70 % of water requirement is expected to be met from surface water resources and remaining 30 % from
ground water sources.
 Government may at any time intervene to prescribed pricing policy for the industry so that industries be
compelled to look into technological intervention leading to reduced water requirement per unit of
production.
 There are already government regulation in place for compelling them to treat the industrial effluents
before disposing into the open rivers & streams.
Water Demand
Assessment by Standing Sub-Committee for assessment of availability and requirement
of water for diverse uses in the country constituted by the Mo WR
Water Demand (BCM)
Sector
Irrigation
2000
2010
2025
2050
541
688
910
1072
42
56
73
102
Industry
8
12
23
63
Energy
2
5
15
130
Others
41
52
72
80
634
813
1093
1447
Drinking Water
Total
Total Use Of Water
Assessment by the National Commission on Integrated Water Resources Development
(NCIWRD)
Total Water Use (BCM)
SI. No.
Uses
Year 97-98
Year 2010
Low
High
Year 2025
Year 2050
Low
High
Low
High
1
Irrigation
524
543
557
561
611
628
807
2
Domestic
30
42
43
55
62
90
111
3
Industries
30
37
37
67
67
81
81
4
Power
9
18
19
31
33
63
70
5
Inland Navigation
0
7
7
10
10
15
15
6
Flood Control
0
0
0
0
0
0
0
7
Environment(1)
Afforestation
0
0
0
0
0
0
0
8
Env.(2)Ecology
0
5
6
10
10
20
20
9
Evaporation losses
36
42
42
50
50
76
76
Total
629
694
710
784
843
973
1180
Weaknesses hence an Investment Opportunities
 Effluents by industries pollute rivers, canal & reservoirs. Massive investment in technology is required for
the cleaning up of the river, canals, etc.
 Sugar factories, distilleries & refinery, leather tanning causes high water pollution with their effluent, large
organization are capable to treat it but small and medium industries (SME’s) cannot due to high cost.
 Cost effective New technology is required for SME’s
 Cost effective desalination plants may be the solution for some of the coastal areas
 The Government may consider the development of tourist projects on the sides of the rivers coupled with
the cleaning up of the rivers.
 The government may come out with the incentive policies for the industries opting for the better
technologies
 Technology to be brought in to convert wastewater into useful on the concept of “Wealth from waste”.
Weakness hence an Investment Opportunities
 Special economic Zones (SEZ) are being developed rampantly in India as an export boosting exercise by
the government where various tax incentive are given to the industries. SEZ are solely developed by
private sector in the area ranging from 200 -25,000 Acres of land
 SEZ comprise of industry, commerce and residential area where integrated water system is required to be
developed for various constituents of the area.
 83% of water is used by agriculture sector for irrigation which is done in traditional way where consumption
of water is very high as compare to global standard
 National Commission on Integrated water resources development (NCIWRD) has estimated that efficiency
of irrigation will increase up to 60% from present 35-40% by 2025. there is a huge scope of improved
technology on cost competitive basis for the farmer.
Weakness hence an Investment Opportunities
Urban Areas
 In Urban areas there is lot of emphasis on recharging of groundwater
 With the increase in urbanization & population, the water table is depleting and government is providing
incentive for various schemes water harvesting etc. for recharging the groundwater. Improved technology
will also find its way into the sector.
 The source of supply in urban area is either from surface water from rivers, reservoirs and lakes.
 Due to polluting industries and domestic sewage and shortfall in
treatment capacity technology and
resources would be needed to augment the deficit.
 Indian economy is growing with new township, colonization and massive development of metro and tire I
cities and tier II cities. In sequence government of India has launched Jawaharlal Nehru National Urban
Renewal Mission (JNNURM) for which $15 billion fund year mark for 59 cities.
 The government encourage Public Private Partnership (PPP) wherever sole private companies may not
enter.
 Central & state government promotes various schemes to clean and de-silting the rivers, ponds, lakes &
reservoir again under PPP model
Weakness hence an Investment Opportunities
Rural Areas
 To provide water is the responsibility of the government and any cost to be incurred by the farmers is
highly politically sensitive thing in India and as such no direct opportunity may be available for the private
sector.
 However the Government is the biggest client for this sector
 Most of the investment will come from the Government and public sector but the government may again be
open for PPP model
 Further the business opportunities do exist on the side lines of the rural population where water is taken
from origin (river, dams) to fields of the farmer. This service chain can be a big business opportunity for
e.g.. Micro hydel plants may be installed on the river, canals, dams and electricity can be supplied near by
villages, towns on the bank of river
 Technology can find way for clean water where water is available but not safe to drink (contaminated).
 Mobile technology for water purification in villages.
 The government may encourage cost efficient technology for the rural sector by providing various
incentives
 In India, contract farming has taken shape where large industrial players are taking participation for
cultivating land. The cost effective technology will find place among these private players
Success or Failure in India ?

THREE BASIC STEPS FOR SUCCESSFUL ENTRY INTO INDIA
 Developing a basic understanding or potential of the Indian market
 Envisaging and developing a Market Entry Strategy and
 Implementing these strategies when actually entering the market

THREE BASIC STEPS THAT CAN LEAD TO FAILURE
 Underestimation of its complexity
 Overestimation of its possibilities
 Look to India as an opportunity for short-term profit
Thank You !