Japan’s Toshiba Corp has entered into an agreement to acquire a 26 per cent stake in Indian waste water management company UEM India. The financial terms of the agreement were not disclosed.

The company will acquire the stake from existing shareholders, including private equity investor India Value Fund Advisors (IVFA). IVFA had acquired a majority stake in UEM in July 2010.

Following the investment, IVFA will continue to own a majority stake in the venture. Toshiba’s entire investment will be infused into the business to drive future growth, the company said in a statement.

UEM Group, founded by Krishan Kshetry, specialises in providing turnkey services in water and wastewater collection, treatment and disposal facilities.

Headquartered in Noida, UEM has executed projects in over 30 countries across India, South East Asia, North America, Central America and Africa. It has annual revenues of about $70 million.

Toshiba has been Japan’s leading manufacturer of electrical system for water supply and sewerage facilities for over 40 years. The company has also expanded the business into overseas markets, including China and Indonesia and has an R&D facility in Singapore.

This collaboration will enable UEM to grow to greater heights, as it gains access to new geographies and new business segments while retaining its India cost advantage. Along with the agreement, an executive officer from Toshiba will be joining the Company’s Board.

“This is a strategic growth area for Toshiba and we will bring our expertise and global access to the company, and also learn from UEM’s vast experience in delivering complex, turn-key projects around the world,” said Naohiro Noro, Vice President, Water & Environmental Systems Division, Toshiba Corporation.

rajesh.kurup@thehindu.co.in

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