 "wastewater treatment plant image via Shutterstock.")
In a strategic move to strengthen its water and wastewater management business in India and neighbouring countries, Toshiba Corporation has agreed to acquire a majority stake in UEM India Private Limited (UEM), a water services company, from the founders and India Value Fund Advisors (IVFA). Toshiba acquired additional 54 percent stake on September 16, 2015 to become the majority owner with 80 percent shareholding in UEM; IVFA and the founding member, Krishan Kshetry remain invested as minority shareholders. The current management team at UEM would continue to run the operations of the company.
UEM Group is an international multi-disciplinary environmental services company that specialises in providing turnkey services in water and wastewater collection, treatment and disposal facilities. Founded by Krishan Kshetry, who has decades of international experience in wastewater management, UEM Group provides complete, single-source services from engineering and design to construction and installation of water, wastewater and domestic waste treatment facilities. In July 2010, IVFA had acquired a majority stake in the company, followed by a 26 percent strategic stake buy by Toshiba in March 2014. Since then, IVF, Toshiba and the founders have been jointly overseeing the business.
Hirofumi Yoshino, vice president, water & environmental systems division, Toshiba Corporation, commented, “Water treatment is a strategic growth area for Toshiba, and UEM is a highly respected player in the water treatment business with vast experience in delivering complex, turnkey projects around the world. After Toshiba acquired 26 percent strategic stake in March 2014, UEM won some additional orders by synergies with Toshiba, for water and wastewater treatment plants from Japanese companies in India and other clients abroad. With this recent enhanced relationship, we will bring in our expertise and global access to enable UEM to become one of the leaders in global water treatment industry.”
Also Read
Krishan Kshetry, promoter, UEM, said, “This is an important milestone in the evolution of UEM. IVFA has been a most supportive partner who has helped us scale the business and took the lead in re-organising and professionalising the business. I am now delighted with this next milestone of Toshiba deepening its partnership as it would provide a bigger canvas for UEM to work on.”
Toshiba has been Japan’s leading manufacturer of electrical system for water supply and sewerage facilities for over 40 years. The company has also expanded the business into overseas markets, including China and Indonesia. Toshiba recognises India as a promising country for developing water-related business in the future.
“Strategic control in UEM will enable Toshiba to bring in synergies with its other business and enable UEM to become one of the global leaders in water and wastewater management business. Toshiba ownership will open doors to new geographies and new business segments which UEM can address through its cost advantage and vast experience in delivering complex, turnkey services,” added Yoshino.
