Patel Engineering in talks to acquire water treatment firm

15 Dec 2009 Evaluate

Niche engineering, procurement and construction firm Patel Engineering Ltd is looking to enter the water treatment business, and is in discussions through a global consultant for its fourth acquisition overall and is in talks with three overseas companies.

 

In the past, too, Patel Engineering has acquired companies for technology in the space of dam building and micro-tunnelling. Patel acquired US-based ASI RCC Inc. in 1997 to gain expertise in roller-compacted concrete technology used in the construction of dams. It bought Michigan Engineers Pvt. Ltd of Mumbai in 2006 for sewage treatment expertise and in 2002 acquired US-based Westcon Microtunneling Inc. for access to micro-tunnelling know how. The three acquisitions cost the company a total Rs25 crore. The company has already built 70 dams in India and executed 200km of micro-tunnelling, and is eyeing a quadrupling of revenue to Rs10,000 crore in the next five years.

 

This proposed acquisition will open a new line of business for Patel, as several water projects are expected across the country. It is looking at companies in the water space with specialized technologies, especially in water purification with focus on water desalination and waste-water treatment projects.

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