Greentech Lead India: Software
technology major Wipro has shelved plans to sell its water treatment business
Wipro Water after it failed to find appropriate buyers, LiveMint reported.
Instead, Wipro is now strengthening
the water treatment business. The company has hired a water treatment
expert, Pinaki Bhadury as business head of Wipro Water to grow the
division, the report said. According to sources close to Wipro Water, the company
is planning to strengthen the business by investing more.
Wipro Water, a unit of Wipro
Infrastructure Engineering, had revenue of less than Rs.100 crore. In September
Economic Times reported Wipro has found three prospective buyers: Earth
Water Group (EWG), Degremont and Metito. The deal size was between Rs
45-50crore. However, according to the latest reports, Wipro dropped the plan to
sell its water treatment business as it could not get the desired price.
This is the second time Wipro is
trying to sell Wipro Water. Last year Voltas was engaged in advanced talks with
Wipro to buy the water treatment business, according to a report in Times of
India.
Wipro had appointed the investment
banking division of Anand Rathi to find a strategic buyer for the business.
By selling the water treatment and
other smaller divisions of the company, Wipro wants to focus on its core
business. Some of the other core businesses identified include baby care
and vanasapti oil brands, the report said.
Nearly 85 percent of Wipro’s
revenues come from IT, while consumer durables and lighting form a major share
of the residual non-IT revenues.
Wipro had entered the water business
by acquiring Aquatech Industries in 2008. The business consists of three
entities: Fontus Water, which executes water and waste water treatment projects
for municipalities, residential and industrial clients; Aventura, a wastewater
components player; and EA Water, which provides consulting services.
Wipro Water is expected to serve
major clients such as Coca-Cola, GSK Pharma, Raymond, Ambuja Cement and United
Breweries.