indian water industry

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 IndustryIndian Water Industry

India Water India Water

India is now realizing the need of water management in the country and effective measures have been 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.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 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.form of ponds, lakes & reservoirs. The geographical area of India is 329 million hectaresThe geographical area of India is 329 million hectares India stands II in land water resource with 113 large & medium rivers, flowing across 29,000 KmIndia 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.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 Agriculture and irrigation are politically sensitive sectors where government don’t prefer much interference

specially when it is for a price. specially when it is for a price.

Water issues in IndiaWater issues in India Growing population and rapid urbanization, severe strain to country’s natural resources. Growing population and rapid urbanization, severe strain to country’s natural resources. Contaminated by industrial effluents, domestic sewage and agricultural runoff. Contaminated by industrial effluents, domestic sewage and agricultural runoff. Pure water supply, but gross disparity in coverage exists Pure water supply, but gross disparity in coverage exists Unsafe water spread 21% of communicable disease Unsafe water spread 21% of communicable disease

Diarrhea alone causes more than 1,600 deaths dailyDiarrhea alone causes more than 1,600 deaths daily

India Water India Water

Hygiene practices is a big problem.Hygiene practices is a big problem. Inefficient use of water in irrigation and the consumption can be brought down by efficient technology. 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 areasFarmers 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 With rapid urbanization domestic water purification industry is expanding operations 22000 millions lt. per day of wastewater get no treatment22000 millions lt. per day of wastewater get no treatment Technology required for solid waste managementTechnology required for solid waste management Measures to reduce the demand by adopting processes with minimum use of water, recycle and re-use etc.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 industriesDevelop technology to figure future requirement of water in industries Financial challenge of rehabilitating and maintaining its stock of water infrastructure.Financial challenge of rehabilitating and maintaining its stock of water infrastructure.

Multi-Sectoral water use scenario and demand assessmentMulti-Sectoral water use scenario and demand assessment

IrrigationIrrigation India cultivable area: 184 m ha which is about 12.7 % of world’s cultivable area.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 hectareThe ultimate irrigation potential been assessed as 140 million hectare

58.50 m.ha. by major and medium irrigation projects, 58.50 m.ha. by major and medium irrigation projects, 17.40 m.ha. by minor surface water schemes 17.40 m.ha. by minor surface water schemes 64.10 m.ha. by ground water schemes64.10 m.ha. by ground water schemes

Presently irrigation sector consume 83 % of available water resourcesPresently irrigation sector consume 83 % of available water resources


DomesticDomestic Discharge of untreated domestic and industrial wastewater is predominant source of pollution of aquatic Discharge of untreated domestic and industrial wastewater is predominant source of pollution of aquatic

resources in India.resources in India. Urban centers contribute most of the sewage generation in the country.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 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.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 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$ 84 billion per year which reduce health care cost, illness & death

Urban Water Supply & SanitationUrban Water Supply & Sanitation Out of total population urban is about 285 million, which is 27.8 % of the total population living in 5161 Out of total population urban is about 285 million, which is 27.8 % of the total population living in 5161

towns.towns. Expected to reach 433 million by 2021Expected to reach 433 million by 2021


Solid Waste Management (SWM) is a part of public health and sanitation. 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 The Urban Local Body undertakes the task of SWM service delivery, with its own staff, equipment and

funds. funds. In some cities SWM is contracted out to private enterprises.In some cities SWM is contracted out to private enterprises.

New programmes by state Governments are eligible for implementing infrastructure facilities such as water New programmes by state Governments are eligible for implementing infrastructure facilities such as water

supply, sewerage, drainage and solid waste management etc.supply, sewerage, drainage and solid waste management etc.

(i)(i) Indian economy is growing with new township, colonization and massive development of metro and tire 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 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 (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.process will be integrated water system, development of sanitation, water treatment projects.

(ii)(ii) Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT).Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT).

Implementation: 2005 to 2012Implementation: 2005 to 2012


Rural Water Supply and SanitationRural Water Supply and Sanitation More than 85 percent of rural water supply is ground water based and consumes about 5 percent of the 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.total annual replenish able ground water. Major Issue: Sanitation coverageMajor Issue: Sanitation coverage Only 14% of rural household have toiletsOnly 14% of rural household have toilets


IndustriesIndustries Urbanization and industrialization of the country has increased substantial demand for water. 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 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. the years 2010, 2025 and 2050 respectively. 70 % of water requirement is expected to be met from surface water resources and remaining 30 % from 70 % of water requirement is expected to be met from surface water resources and remaining 30 % from

ground water sources.ground water sources. Government may at any time intervene to prescribed pricing policy for the industry so that industries be 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 compelled to look into technological intervention leading to reduced water requirement per unit of

production.production. There are already government regulation in place for compelling them to treat the industrial effluents before There are already government regulation in place for compelling them to treat the industrial effluents before

disposing into the open rivers & streams. disposing into the open rivers & streams.

Water DemandWater Demand

Water Demand (BCM)

Sector 2000 2010 2025 2050

Irrigation 541 688 910 1072

Drinking Water 42 56 73 102

Industry 8 12 23 63

Energy 2 5 15 130

Others 41 52 72 80

Total 634 813 1093 1447

Assessment by Standing Sub-Committee for assessment of availability and requirement of water for diverse uses in the country constituted by the Mo WR

Total Use Of WaterTotal Use Of Water

Total Water Use (BCM)

SI. No. Uses Year 97-98 Year 2010 Year 2025 Year 2050

Low High 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

7Environment(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

Assessment by the National Commission on Integrated Water Resources Development (NCIWRD)

Weaknesses hence an Investment OpportunitiesWeaknesses hence an Investment Opportunities

Effluents by industries pollute rivers, canal & reservoirs. Massive investment in technology is required for Effluents by industries pollute rivers, canal & reservoirs. Massive investment in technology is required for

the cleaning up of the river, canals, etc.the cleaning up of the river, canals, etc. Sugar factories, distilleries & refinery, leather tanning causes high water pollution with their effluent, large 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. 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 New technology is required for SME’s Cost effective desalination plants may be the solution for some of the coastal areas 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 Government may consider the development of tourist projects on the sides of the rivers coupled with

the cleaning up of the rivers.the cleaning up of the rivers. The government may come out with the incentive policies for the industries opting for the better The government may come out with the incentive policies for the industries opting for the better

technologiestechnologies Technology to be brought in to convert wastewater into useful on the concept of “Wealth from waste”.Technology to be brought in to convert wastewater into useful on the concept of “Wealth from waste”.

Weakness hence an Investment OpportunitiesWeakness hence an Investment Opportunities

Special economic Zones (SEZ) are being developed rampantly in India as an export boosting exercise by 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 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 landprivate 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 SEZ comprise of industry, commerce and residential area where integrated water system is required to be

developed for various constituents of the area.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 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 standardof water is very high as compare to global standard National Commission on Integrated water resources development (NCIWRD) has estimated that efficiency 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 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.technology on cost competitive basis for the farmer.


Urban AreasUrban Areas In Urban areas there is lot of emphasis on recharging of groundwater 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 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 incentive for various schemes water harvesting etc. for recharging the groundwater. Improved technology

will also find its way into the sector.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.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 Due to polluting industries and domestic sewage and shortfall in treatment capacity technology and

resources would be needed to augment the deficit.resources would be needed to augment the deficit. Indian economy is growing with new township, colonization and massive development of metro and tire I 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 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. 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 The government encourage Public Private Partnership (PPP) wherever sole private companies may not

enter. enter. Central & state government promotes various schemes to clean and de-silting the rivers, ponds, lakes & Central & state government promotes various schemes to clean and de-silting the rivers, ponds, lakes &

reservoir again under PPP modelreservoir again under PPP model


Rural AreasRural Areas To provide water is the responsibility of the government and any cost to be incurred by the farmers is highly 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.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 sectorHowever 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 Most of the investment will come from the Government and public sector but the government may again be

open for PPP modelopen for PPP model Further the business opportunities do exist on the side lines of the rural population where water is taken 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 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 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 villages, towns on the bank of river Technology can find way for clean water where water is available but not safe to drink (contaminated).Technology can find way for clean water where water is available but not safe to drink (contaminated).

Mobile technology for water purification in villagesMobile technology for water purification in villages.. The government may encourage cost efficient technology for the rural sector by providing various The government may encourage cost efficient technology for the rural sector by providing various

incentives incentives In India, contract farming has taken shape where large industrial players are taking participation for 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 playerscultivating 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 !

indian water industry

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