Norfund, the Norwegian government’s investment fund focused on sustainable development, is joining a consortium to back a municipal projects platform established by VA Tech Wabag, a water treatment company.
VA Tech Wabag, which counts Rekha Jhunjhunwala and the Norwegian sovereign wealth fund as its investors, is a water technology company headquartered in Chennai. The company will create a platform to focus on the development of capital projects in the water sector.
The platform will commit up to $100 million (Rs 862.4 crore) in equity investment over the next three-five years in partnership with the investor consortium, which includes two other international investors besides Norfund.
As the technical partner, Wabag will provide engineering, procurement, and construction (EPC), and operations and maintenance (O&M) services, while also making a minority investment in the platform, in line with its asset-light strategy.
The platform will primarily aim to address the increasing demand for advanced water treatment technologies and infrastructure.
S Varadarajan, whole-time director and chief growth officer of Wabag, said, “This initiative reflects our asset-light strategy, focusing on partnerships that combine Wabag’s technical strengths with the financial strengths of our collaborators.”
As a specialized Indian water technology multinational, Wabag provides comprehensive water solutions globally, with a team of over 1,600 professionals working in more than 25 countries.
Over the past 30 years, it has designed and built over 1,500 municipal and industrial water and wastewater treatment plants worldwide. In 2021, the company raised funding from IFC, Tata Cleantech Capital, and Eversource Capital.
As of March 2024, VA Tech Wabag had a consolidated net revenue of Rs 2,856 crore, with a net profit of Rs 260 crore, according to VCC Edge, the data research platform of VCCircle.
Norfund has been actively investing in India’s sustainability sector. In August 2024, it co-invested in KKR-backed IndiGrid’s transmission systems projects. Last year, Norfund also led a consortium that invested $38 million in Candi Solar, a Swiss renewable energy company with a significant presence in India, to support its expansion.
