Earth Water Group raises $15mn from CLSA Capital Partners

Sanjeev Krishnan, Director, CLSA is expected to oin the company's board

Earth Water Group (EWG), one of the leading players  in the water and wastewater management industry has today announced its maiden fund raising of $15 million (around Rs 82.5 crore) from the Singapore based CLSA Capital Partners. CLSA will acquire close to 20% stake in the company.

CLSA Capital Partners is the alternative asset-management arm of Asia’s leading independent 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 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 that Earth Water Group is the best suited opportunity to provide long-term professional management, national reach, strong customer relationship and a healthy order book which places it in a strong position to be a market leader in the water sector”

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, which has always been rich in its water resources, has been facing serious water shortages lately. The situation has risen primarily due to increased water demands and deteriorating water quality as a result of domestic sewage and industrial effluents. While the situation poses a serious concern, it also opens up an array of opportunities for players across the entire spectrum of value chain in the water sector, a market that is 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.