Earth Water Group's plan to raise funds

Earth Water Group (EWG), a leading company in the water and wastewater management industry, on Monday announced a fund raising plan for $15 million (Rs 82.5 crore) from the Singapore-based CLSA Capital Partners. In return, CLSA will acquire close to 20 per cent stake in the company.

CLSA is the alternative asset management arm of a leading Asian brokerage and investment group, CLSA Asia-Pacific Markets. Peter Kennedy, managing partner, CLSA, said, “Water is a core area for our fund and we have been looking for several years for the right partner in India. We were impressed with the Earth Water Group founder’s strategic vision and strong desire to take his business to scale. We looked at various business models in the Indian water sector and felt (they) were the best suited opportunity.”

Sanjeev Krishnan, director, CLSA, will join the company’s board.

“These funds provide us an opportunity to bring in new technologies, adapt them for Indian conditions, and to create intellectual property that will have global value. The company also has well-defined plans to invest in people, processes and technology partnerships to support its growth path,” said Krishnan.

India, rich in water resources, has lately been facing serious water shortages. The situation has risen primarily due to increased water demands and deteriorating water quality, as a result of lack of treatment of domestic sewage and industrial effluent. This also opens an array of opportunities for companies across the value chain in the sector, a market now estimated to be worth over Rs 60,000 crore.

“The fund will be used to strengthen existing core initiatives and for acquiring attractive and complementary businesses. It will also enhance the risk appetite of the company to take innovative and path-breaking means to redefine the Indian water industry, while also allowing us to enter new areas like zero liquid discharge and desalination,” said Sunil Ghorawat, founder and managing director of Earth Water Group.