Dec. 03, 2010
Strategic Alliance with India's Leader in Water Solutions
Sumitomo Corporation (Chuo-ku, Tokyo; President and CEO: Susumu Kato; hereinafter, Sumitomo) hereby announces that it has signed an alliance agreement with VA TECH WABAG, Ltd (Chennai, India; CEO: Rajiv D. Mittal; hereinafter, WABAG), a leading MNC in water treatment industry. The two companies will strategically cooperate in multiple areas within the water infrastructure industry.
Under this alliance agreement, Sumitomo intends to expand its global water infrastructure assets, increase its operational capabilities and make a step into the Indian water sector, which is expected to grow significantly in the coming years.
WABAG intends to expand more into capital intensive concession type of business and interested in utilizing Sumitomo's fund-raising abilities, specifically, its expertise regarding project investment and large scale project finance structuring as well as its global network.
WABAG is a global scale water treatment company having more than 85-year history. The company has built up a wealth of experience in the supply and operation of a range of water and wastewater treatment plants not only in India but in many other parts of the world and especially in emerging markets. An Indian major banking group and a Singaporean sovereign wealth fund being among its shareholders, WABAG went public in October 2010 with listings on the Bombay and the National Stock Exchanges; a move that helped India's market leader to further reinforce its management base.
Sumitomo operates water infrastructure businesses in different parts of the world under the principle of developing optimal schemes for each project in consideration of local regional characteristics. Building on its achievements in investing in projects for water supply and sewage systems as well as desalination in Mexico, Turkey, Bahrain and the U.A.E., the company recently agreed to establish a joint venture with Beijing Capital Co., Ltd., the top player in China's water infrastructure market, as announced in September 2010.
With these new strategic alliances, Sumitomo has gained a firm foothold for the speedy and efficient expansion of its water service related business in India and China, which, as the world's two biggest emerging economies, are expected to continue growing in the years to come. Sumitomo will make effective use of these strategic partnerships to accelerate the global development of its water infrastructure business.
1 EPC stands for engineering, procurement and construction. A contracting arrangement for undertaking all processes involved in a construction project as a single package.
2 MNC stands for Multi National Company.
<Overview of WABAG>
|Company name||:||VA TECH WABAG, Ltd|
|Head office||:||Chennai, India|
|Number of employees||:||Around 1,500|
|Total income||:||INR 12,338 million (fiscal year ended March 2010)|
|History||:|| 1924 WABAG Wasserfilter-Bau established in Germany |
1999 VA TECH AG Austria becomes sole owner of VA TECH WABAG GmbH
2005 The current VA TECH WABAG India, Ltd. carried out Management Buy-Out
2007 Reverse Acquisition of VA TECH WABAG, Austria
2010 Listing on the Bombay and National Stock Exchanges
Corporate Communications Department,