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Cost-optimized Solutions Fuel the Uptake of Industrial Water and Wastewater Services in India - The Indian water and wastewater services market is expected to witness a higher growth with the majority of end-user industries seeking cost-effective solutions while expanding the existing systems and installing new waterworks
Cost-optimized Solutions Fuel the Uptake of Industrial Water and Wastewater Services in India

 

NewswireToday - /newswire/ - Mumbai, India, 2011/02/08 - The Indian water and wastewater services market is expected to witness a higher growth with the majority of end-user industries seeking cost-effective solutions while expanding the existing systems and installing new waterworks.

   
 
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The facilities are put in place to cater to operational requirements and the mounting pressure from government legislation to reduce environmental pollution.

Analysis from Frost & Sullivan (environmental.frost.com), Assessment of Indian Water and Wastewater Services Market, finds that the market earned revenues of INR 3,700 million in 2009 and estimates this to grow at a healthy rate of almost 18 percent per annum until 2014.

Water has become a crucial commodity, especially for industrial and commercial use. Quality requirements, coupled with stringent wastewater discharge regulations, pose a significant challenge to end-user industries.

"The growth in the number of wastewater recycle and reuse facilities, demineralization plants, and RO-based water treatment plants which require constant scheduled checks and services to operate optimally have pushed the market for plant management services significantly, " states Frost & Sullivan Research Analyst Nitin Saran.

The water and wastewater services market is split across many types of services contracts including annual maintenance contract (AMC) and operation and maintenance (O&M) contract. The market for other contracts is small, as the liability of service providers in these types of contracts is limited.

However, there is competition within the market between the major and smaller participants. Small unorganized companies in the market continue to make their presence felt by using pricing as a predominant weapon, providing AMCs for as little as INR 5,000 (approximately $108). Unorganized service providers also derive the benefits of being local participants by saving on taxes. Thus, unorganized small service providers account for a large portion of the AMC market.

"The small players are able to provide services at such low rates because they provide low-grade spares and chemicals, which are much cheaper when compared to the branded ones, " observes Saran. "Regional advantage coupled with cheap labor and tax eviction methods further help to provide services at low costs."

To compete with unorganized companies, the major market participants need to form strategic alliances with vendors of spares, chemicals, and equipment. Furthermore, they can leverage the existing relationships with clients that have procured products or spares, as clients prefer a single point of contact for all concerns.

Only a few companies offer the entire range of services contract categories. This provides a bright opportunity for established companies to provide bundled services contracts such as O&M and audit and inspection (A&I) services.

Another key opportunity lies in the training services market, which is being offered by a handful of companies. The training services market has the potential to develop as a key area within the services market. With end-user industries looking for better and cost-effective methods to take care of the water and wastewater treatment plants, the water and wastewater services market has a scope for growth.

If you are interested in more information on this study, please send an email to Ravinder Kaur / Priya George, Corporate Communications, at ravinder.kaur[.]frost.com / priyag[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

Assessment of Indian Water and Wastewater Services Market is part of the Environmental Growth Partnership Services program, which also includes research in the following markets: Strategic Analysis of Green Technologies Market: Water and Wastewater Management, Market Study on the Indian Air Pollution Control Equipment, Industrial Waste Management Services Market in Malaysia, Singapore, and the Philippines. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents.

Assessment of Indian Water and Wastewater Services Market / P464

Contact:
Tanu Chopra, Corporate Communications – Middle East
P: +91 22 6607 2037 / F: +91 22 2832 4713 / E: tanuc[.]frost.com.

Nimisha Iyer, Corporate Communications - South Asia & Middle East
M: +91 98200 50519 / P: +91 22 6607 2004 / E: niyer[.]frost.com.

 
 
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Cost-optimized Solutions Fuel the Uptake of Industrial Water and Wastewater Services in India

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Frost & Sullivan |
Publisher Contact: Ravinder Kaur / Priya George 
+91 44 4204 4517 / +91 44 42044283 ravinder.kaur[.]frost.com / priyag[.]frost.com
 
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