Hubert Enviro Care Systems (HECS), a Chennai-based water treatment solutions provider, is set to launch an initial public offering (IPO) within the next 6-12 months. The company aims to raise about ₹200 crore to fund its plans for global expansion through inorganic growth.
“The dynamics in the water treatment technology space are evolving. Historically, we sought technology from the West, but now we are positioned to offer our own solutions globally,” Dr J R Moses, Chief Executive Officer, HECS, told businessline. He added that the funds raised will be used to support acquisitions and global operations. “We are currently collaborating with merchant bankers to facilitate the proposed IPO,” he added.
The ₹200-crore company employs around 3,000 people and is establishing an office in Sri Lanka, set to open next month. “Currently, about 98 per cent of our revenue comes from India. However, we plan to diversify this by increasing our international contributions to about 30 per cent. We aim to position ourselves as a 360-degree environmental management company, offering comprehensive services throughout the project lifecycle, including securing necessary approvals, conducting environmental impact assessments, and establishing water treatment facilities,” said Abishek Moses, Director of HECS.
“Our primary focus is on recycling plants for sewage and effluent, along with specialised applications in industrial water treatment,” he said. He also pointed out that industries such as electronics and semiconductors have stringent water quality requirements, making recycling essential, particularly for electric vehicle manufacturers that require more water than traditional industries.
The 22-year-old HECS offers a range of services in the water treatment sector, including laboratory services, turnkey projects, consultancy, and operations and maintenance. “We boast one of the largest analytical testing and R&D laboratories in the country, located in Chennai and Mangaluru, covering a significant portion of South India. Our manufacturing facility in Sriperumbudur, Chennai, produces FRP-based packaged sewage and effluent treatment plants,” he added.
Tie-up with Toyobo MC
On Tuesday, HECS announced a partnership with Japan-based Toyobo MC Corporation, a sister company of Mitsubishi, to source cost-effective RO membranes for its water treatment projects.
Dr Moses said Toyobo’s RO membranes are designed for superior durability, with a projected lifespan that exceeds current products. “We anticipate a 20-25 per cent improvement in performance for the same cost, leading to higher quality water output. Additionally, we expect a price point that is 10-15 per cent lower than existing options,” he said.
Toyobo will also be actively involved in troubleshooting and supporting the technology, ensuring their engagement extends beyond mere sales.
“I believe RO membrane technology is essential for cost-effective water purification. It will play a crucial role in India’s water management efforts, especially as the country seeks efficient methods for recycling and reusing water,” said Ariji Akihiro, Manager of the Tech Group at Toyobo MC Corp.
Currently, about five or six membrane brands are available in India, all of which are imported and none are manufactured locally.