Welspun Enterprises (WEL) jumped 4.20% to Rs 327.60 after the company announced that it received letter of acceptance (LoA) worth Rs 4,123.88 crore from the BMC for a 2,000 MLD water treatment plant at Bhandup in Mumbai.
In an exchange filing, the company said, Welspun Enterprises has secured a significant contract to design, build and operate a 2,000 MLD (million litres per day) water treatment plant (WTP) at Bhandup complex in Mumbai, from the Brihanmumbai Municipal Corporation (BMC)."
The contract, valued at Rs 4,123.88 crore, encompasses the design, construction, and operations & maintenance of the plant. The value comprises a Rs 1,880.44 crore operations and maintenance (O&M) component and a Rs 2,243.44 crore design-build (DB) component.
The design‐build project is slated to be completed within a timeframe of 48 months, following which the company will undertake O&M responsibilities for a period of 15 years, said the firm.
The proposed water treatment plant, one of the largest in the world in terms of capacity, is located at BMCs Bhandup complex, which currently supplies drinking water to Mumbai City through existing water treatment plants.
WEL has partnered with Veolia, one of the worlds largest technology company specializing in the water sector, as its Technology provider for the upcoming plant. WEL aims to leverage advanced treatment processes and technologies, in line with its commitment to maximizing resource utilization and developing sustainable infrastructure solutions, the company stated in the press release.
The company is currently executing some projects including the rural water supply project under Government of Indias Jal Jeevan Mission in Uttar Pradesh covering around 2,500 villages and the 418 MLD waste water treatment facility (WwTF) project at Dharavi, Mumbai, it added.
Sandeep Garg, managing director, Welspun Enterprises, said, With the Bhandup WTP project, WEL has expanded its portolio to encompass a comprehensive range of solutions across the entire water spectrum. The water sector continues to be one of the key focus areas for us and this order synergises well with our overall growth strategy. Our strong capabilities and proven track record in delivering high value and critical infrastructure projects stand us in good stead to bag significant opportunities in future.
Welspun Enterprises is engaged in the civil construction contract. They are offering various types of works, such as mass housing and township, multi-storied buildings, industrial projects for coal mines, fertilizer plants, petrochemicals and water retaining structures.
The companys consolidated net profit stood at Rs 71.55 crore in Q3 FY24, down 82.1% from Rs 400.70 crore posted in Q3 FY23. However, net sales stood at Rs 706.71 crore in Q3 FY24, up 2.1% year on year.
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