VA Tech Wabag has bagged a Rs 270-crore contract from Reliance Industries to set up an effluent treatment and recycling facilities at Dahej and Hazira.
According to a press release from Wabag, the company will set up a 32.4-million-litre a day effluent treatment and recycling plant at Reliance's Purified Terephthalic Acid and Polyethylene Terephthalate production facility at Dahej and a tertiary treatment plant at the Hazira Complex.
The Chennai-based multinational in water treatment will set up one of the largest treatment plants and recycling facility, a novel attempt for this type of production facility. The effluent will be recycled for use in the Dahej Complex itself. The contract is to be completed in 21 months, the release said.
The company has reasons to be optimistic as order flows from industry and public sector continue, according to Mr Rajiv Mittal, Managing Director, VA Tech Wabag.
The total orders on hand is about Rs 4,000 crore.
The order from the petrochemical giant makes Wabag a significant player in water recycling in oil, gas and petrochemical sector.
The company had executed the effluent treatment plant for Reliance's Jamnagar Refinery in 1999.
While not giving specific numbers on order flows in the current quarter, he said water sector continues to be active with public and private sector contributing to the orders.
Current year estimates of the total potential orders that would be available to players in the sector for treatment plants alone were about Rs 10,000 crore.
This is reason enough to be bullish, he said.
VA Tech Wabag is on track in its growth projections. Its guidance for the year was a top line growth of about 15 per cent and a bottom line growth of 25-30 per cent.
In 2011-12, the company reported a net profit of Rs 75 crore on an income of Rs 1,003 crore.