Opportunities and Challenges
for Japanese Companies
in theIndian Water and Wastewater Sector

About us India’s Largest knowledge & marketing solutions provider in thewater sector
 Started in the year 2000 by a group of water professionals
 Objective of raising awareness & knowledge level on water &wastewater management Help promote water-related products & services
 Unique, one-of-its-kind model in the water sector• EA Waterは、2000年に設立されたインド水業界最大手のソリューションプロバイダです• 水関連製品・サービスの促進等を通して上下水・廃水管理における各種情報提供と知識レベルの向上に寄与することを目指していますCommitted to Innovation
 Knowledge leader in the sector
 Storehouse of information
 Bellwether in recognising the emerging trends
 Integrated marketing platform for all communication
 Gateway for the international technology providers aiming at Indianindustry
 Aid to strategy and policy-making for government and industry
bodies Provider of tools for knowledge upgradation & market growth• EA Waterはインド水業界のリーダーとして、国外企業のインド市場への参入や、企業戦略・政策決定の支援、水関連技術・知識の提供などを通じて、インドでの技術革新に貢献していきますWater Situation in India
India has a population of 1027 million as per 2001 Census.
National Water Policy looks at decentralized water management andpublic-private partnership227 million of these stay in 498 Class I cities with a population of morethan 1 lac (22% of the total population)
The total water supply to these cities is 44,769 MLD
The highest water supply to Class I cities is in Maharashtra (12483MLD), Uttar Pradesh (4383 MLD) and Delhi (4346 MLD)
The average per capita water supply in the Class I cities is 179 lpcd.
This ranges from 80 lpcd in 42 cities in Tamil Nadu to 540 lpcd in caseof Chandigarh• 2001年時点で人口10億人を超えているインドでは、このうち2億人がClassⅠと呼ばれる人口10万人以上の都市（インド全土で498都市）に住んでいます• これらの都市の水供給量は、44,769MLD（百万m3／日）、平均179lpcd（一人一日当たりリットル）ですWater Situation in India
Estimated sewage generation from all cities and towns is 29129 MLD
India has 269 sewage treatment plants, out of which 231 plants areoperational totalling a total capacity of 6190 MLD. The 38 plants underplanning or construction add another 1743 MLD capacity
Urban population coverage by individual connection is only 64% inIndia
Daily duration of water supply in India is between 1 to 6 hours
Over 50% of the total water supply is Non-Revenue Water
Ground water quality problems of fluoride, iron, nitrates, arsenic andhigh salinity• すべての都市や町から出る下水の量は、29,129 MLD （百万m3／日）で、269の下水処理施設で処理されています。
• 飲料水は、1～6時間の間で供給されますが、50％以上が政府により無料で提供されています• また、地下水に含まれるフッ化物、硝酸塩、ヒ素、高塩分等の処理問題を抱えていますStatus of Water Supply in India
Population

Total Water
Supply(in MLD)Per Capita
Water Supply(in lpcd)

Class I cities

498 innumber

227 million

44,769196

Class II cities

410 innumber

30 million

3,325121TOTAL

908 innumber

257 million

48,094187

Capacity Gap in Sewage Treatment
City
Category

Numberof cities

SewageGeneration(MLD)

InstalledSTP
capacity(MLD)

Capacity
gap incities
havingSTPs

Sewagegeneration
with cities
having noSTPs

Total
capacity gap(MLD)

Cities withpopulation> 10 lacs

39

17,554

8,040

6,135

3,379

9,514

Cities with
5 to 10 lacs
population

32

1,293

2,612

3,905

Cities withless than
5 lacspopulation

822

1,177

11,99913,176

TOTAL

893

8,605

17,99026,595(in 29cities)
4,987

1,082
(in 13cities)

15,3272,151(in 95cities)

37,868

11,273(in 137cities)

Water Sector Project Funding
Jawaharlal Nehru National Urban Renewal Mission (JNNURM) looks at65 cities which have a population of more than 1 million or state capitalor having historic and tourist importance. Launched in 2005, water supply
accounts for 37% of the cost of projects sanctioned and 40% of thefunds released under the JNNURM scheme
Urban Infrastructure Development Scheme for Small and Medium Towns(UIDSSMT) looks at all cities and towns other than 65 identified ones.
JICA, World Bank and Asian Development Bank are the multilateralagencies funding some of these water supply projects• Jawaharlal Nehru National Urban Renewal Mission (JNNURM)は、人口100万人以上または州都、歴史・観光上重要性のある65都市をターゲットとし、2005年から支援を続けています。
中小規模の都市に対しては、都市インフラ開発スキーム（UIDSSMT）が支援しています• これらのPJTにはJICA、世界銀行、アジア開発銀行が援助することもありますProject Funding for Water SupplyProjects
No. of Projects
Sanctioned

Cost ofsanctioned
projects(in USD million)

Funds released(in USD million)

JNNURM

143

3,807

783

UIDSSMT

344

1,330

282

TOTAL

487

5,137

1,065

Industrial Wastewater Treatment
Industrial sector makes up about 20% of India’s GDP and Indian industry is
growing at a rate of over 8 % p.a.
Industrial water use in India is about 40 billion cubic metres (bcm) which isnearly 6% of the total freshwater abstraction. Annual wastewater discharge
from industry is 30.7 bcm
Water demand for industrial and energy usage is projected to increase to191 bcm by the year 2025.
Central Pollution Control Board estimates the total wastewater discharge
from industrial sources to be 83,048 MLD
With increasing industrial growth, the demand for water and water
treatment would grow. Despite more water-efficient manufacturing
processes, the market would grow.
Pollution control board norms for all manufacturing industries are planned
to become more rigorous and enforcement would become stricter, due tohigher public scrutiny• インドの工業用水使用量は、400億立方メートル（BCM）で、インドの淡水の約6％です• 産業廃水は年間30.7 BCMで、2025年までに191 BCMに増加すると予測されています• 産業廃水による公害を防ぐための基準を厳しくする計画が進められていますIndustrial Wastewater Treatment
Wastewater Recycling concept growing in sectors like refineries,
steel plants, mining and textile
Major polluting industries are distilleries, paper, textiles, leather
tanneries and chemical industries
Major zero-discharge industries include Chennai Petroleum,
Rashtriya Chemicals & Fertilizers, Arvind Mills (textile, Arvind Mills(paints)
Common Effluent Treatment Plants have been built for clusters ofsmall industries
Public-private partnership projects for recycling sewage and sellingto industrial clusters have been coming up in different locations• 精油、製鉄、鉱業、繊維といった業界では、廃水再利用のコンセプトが浸透しつつあります• 汚染を引き起こしている主な業界は、蒸留業、繊維、皮なめし、化学等です。
• PPP（官民連携パートナーシップ）では、下水を再利用し、特定産業へ販売するようなプロジェクトが各方面で実施されていますKey India Trend – Huge Water Deficiencies• Clean water supply and treatment represents a meaningful opportunity in
the Indian water market• インド水市場において、浄水の処理や供給は大変重要な意義があります
Investment
Considerations

Trends

Implications

 Worsening supply
demand balance with
16% of the world’s
population and 4% of
the available fresh water Only 27% of wastewatergets treatment

 Opportunities across thespectrum in infrastructuredevelopment for watersupply and wastewater
treatment 10%+ growth rate on a~$13Bn market opportunity Municipal market is a big
opportunity till 2020
 Complex wastewater
treatment / higher margin
projects will be more limited
to heavy polluting industries
such as pulp & paper,
leather etc.

Increasing Water Demand (Bn m3)

Proportion of Treated Water
ClassⅠⅠ ClassⅡ
Ⅱ Totalcitiestowns

Particulars
Population (mm)

187

38

225

Water Supply (MLD)

29782

3035

32187

Water Supply (LPCD)

160

81

146

Wastewater Generated (MLD)

23826

2428

26054

Wastewater Generated (LPCD)

127

65

116

Wastewater Treated (%)

29%

4%

27%

71%

96%

73%

Source: 11th Five-Year Plan

Wastewater Untreated (%)~1.5 X

1093

750

2000

2025

The Use of Water• Agriculture is by far the biggest user of water globally, driven mostly by emerging
markets• 世界的に見ても、農業では群を抜いて水の利用量が大きく、特に新興国で顕著です
16%
19%

25%

5%
10%

45%
15%

70%

18%

23%

20%

10%

63%

68%

Brazil

World

75%
15%

85%

66%
60%
20%
5%
UK

20%

40%

10%
CanadaUS
Industry

Japan

China

Residential

India

AgricultureOpportunities/Challenges on
Supply Side of Water
Growing Scarcity in Many Parts, caused by overexploitation, poor planning and delayed project
implementation
Decreasing water quality
Rising Cost of Fresh WaterMore Complex Discharges from Industrial Activity• 水の供給側の課題としては、水道管理における計画の不備、実行の遅れ及び水の過剰な利用などにより、多くの地域で水不足が加速しています• また、浄水にかかる費用の抑制や、産業活動にともなう廃水管理、水質向上などが課題ですOpportunities/Challenges on
Demand Side of Water
Huge and Growing Demand for Water
Increased awareness about water quality and healthIncreased Industrial and Economic Activity
Rising Construction, Building and Commercial demand
Need for energy-efficient and sustainable solutions
Higher level of Environmental regulations
Need for cost-effective solutions to appeal to wider baseOverall higher level of water awareness and concern• 一方、水の需要は、工業・経済活動の活発化に伴い、増加の一途を辿っています• また人々の水質や健康への影響への関心の高まりを受け、環境規制などを含めた幅広い視点での費用対効果の高いソリューションが求められていますKey India Trend – Government Focus Renewing in Water• Majority of the spending is in basic infrastructure development, but opportunities
in recycling, desalination and sludge management have started• インフラの整備に多くの費用が割り当てられていますが、水の再生利用や淡水化、汚泥処理等への取り組みも始まっています。
Investment
Trends
Implications
Considerations
 Government planning tospend meaningfulbudget on water
infrastructuredevelopment in the nearfuture Majority of the spending is
expected to be around basic
infrastructure developmentthat will involve local
contractors and“commoditized” EPC
contracts

Planned Government Spending Large / complex Muni BOT
projects that have a highbarrier to bidding represent
a more attractive
investment opportunity
 Ability to substantiate gov’t
funding with externalfunding will be a critical
success factor

Huge funds allocated for Urban water infrastructure (Eleventh plan)
Funds Requirement – Urban Basic Services
Sub-sector

Proposed Flow of Funds(Rs. Bn) Source of Funding(Rs. bn)

Urban water supply

537

Central Sector Outlay700

Urban sewage and treatment

532

State Sector Outlay

350

Urban drainage

202

Institutional Funding

100

Solid Waste Management

22

Extemal Agencies

100Others

0.18

FDI and Private Sector

42

Total

1,292

Source: Ministry of Urban Development

1,292

Structural Assessment of the Indian Water Sector• While Industrial has been an attractive end-market historically, large-scale
privatization and BOT projects in the Municipal segments offer the most attractive
economies• 産業用水はもとより魅力的な市場ですが、大規模な官民連携やBOTプロジェクトは経済的に見るとより魅力的と言えますEconomics

High attractiveness

Municipal(Large BOT & PPP Projects)Abstraction,Treatment
distribution,andClean Waste
Low attractivenesscollectionROICStructuralAttractiveness

15-20% 15-20%

Industrial

Treatment

Treatment

CleanWaste

CleanWaste

<10%

<10%

10-15% 10-15%

Cyclicality

Revenue VisibilityBarriers to entryRisk
Assessmentna

Municipal (Small
InfrastructureProjects)







Threat of substitutes
Bargaining power of customers
Bargaining power of equipment
suppliers
Degree of competition







Execution Risk



Regulatory Risk / PoliticalCapture







//

Market Characteristics Fragmentation of Industry
 Growth of a few medium-sized players
 Geographical decentralization of industry
 Entry of international players
 Growth of Energy-Efficient Technologies
 Growth in standardized plants• インドの水市場は細分化されており、中規模なプレイヤーが伸びています• グローバル企業のインド進出や、エネルギー効率化に向けた技術の進化等が進んでいますFuture Market Trends
 High investment in urban water supply More stringent wastewater discharge norms
 Wastewater Recycling Desalination
 Community-based drinking water schemes Growth of O & M businesses Growth of packaged sewage treatment plants Growing Point-of-use Residential Market
 Growing Packaged Drinking Water Industry• 今後の市場トレンドとして挙げられるのは、都市部の水道への積極的な投資、より厳格な廃水排出規制、廃水の再利用、淡水化、コミュニティベースの飲料水供給、運営管理ビジネスや下水処理設備等の拡大です。

Government Regulatory Framework

 Customs Duty Structure Regulations for Entry of Foreign Companies• 政府による規制の枠組みは、関税構造や国外企業の進出規制などが挙げられますCustoms Duty Structure
 Covered under Section 8421 of the Customs
Classification
 Basic Customs Duty of 7.5%
 Countervailing duty of 16%, 3% cess on CVD, 3%
further cess on total and 4% special duty
 Total Effective Duty of 31%
 Zero Customs Duty on specified and approved projects
for drinking water or wastewater treatment• 基本関税が7.5%、相殺関税が16%、租税3%、特別関税4%となり、実効税率は31%です• 飲料水または廃水処理に関する特定のプロジェクトでは関税がかかりませんRegulations for Entry of ForeignCompanies
 Falls under Open Category
 Not restricted or prohibited in any way
 Can be imported by any Indian company with an
Import- Export Registration Code
 For any foreign direct investment into India, approval
from Reserve Bank of India and the Foreign
Investment Promotion Board (FIPB) is needed Any joint venture or subsidiary has to be registeredwith the Registrar of Companies• 国外企業の進出規制に関しては、国外企業による直接投資はFIPBやインド準備銀行の承認が必要であったり、ジョイントベンチャーは登録機関による認証が必要ですAreas where Japanese companies
could find opportunities in India
 Wastewater recycling based on membrane technology
 Biological wastewater treatment
 Sludge Handling, Treatment and Disposal
 Environment consulting and designing
 UV and other water disinfection technologies
 Leakage monitoring and water infrastructure maintenance• 日本企業がインドに進出する際には、膜技術や生物学的廃水処理システム、スラッジ処理、環境コンサルティング、UV等を用いた殺菌技術、漏洩のモニタリングやインフラの維持管理等が有力ですInternational Majors
already present in India
 Siemens GE Water Degremont Veolia Water

 Dow

 Befesa

 Endress + Hauser

 KSB Pumps

 Grundfos Pumps

 ABB

 Nalco Chemicals

 Pentair Danaher Group

 ITT

 IDE Technologies

 Hyfluxand many more …

Japanese Companies
already present in India
 Kobelco Asahi Membranes

 Ebara Pumps

 Tsurumi Pumps

 Toray Membranes

Nitto Denko - Hydranautics

 Kubota Corporation

 Torishima Hitachi Plant Tech.

 JFE Engineering Nippon Koei

 Tokyo Engg. Consultants

 CTI Engineering Iwaki Pumps
and many more …

The Way Forward Finding the Right Opportunity Finding the Right Partner
 Finding the Right Strategy
 Having Patience Thinking Long-Term• インド進出の成功には、正しい機会とパートナー、戦略を持つことが必要です• また、忍耐と長期的な視野が必要ですOur offerings

 Publishing Events
 Consulting Recruitment & TrainingPublishing EverythingAboutWater
 India’s first and only monthly print magazine on water,
reaching over 55,000 water professionals
 Portal & e-newsletter www.eawater.com- reaching out to more than 20,000
water professionals
 International Marketing Platform Representing well-known international magazines likeArab Water World & WC&P
 Books/ CDs Covering a wide range of subjects• Everything About Water： 55,000人以上の水専門家に購読されている月刊誌です• Portal & e-newsletter： 20,000人以上の水専門家にアクセスされています• International Marketing Platform ： 代表的な国際誌です• Books/ CDs： 幅広い専門分野を網羅していますEvents

 Annual EverythingAboutWater EXPO- The largest water eventin Asia (outside China)
 SemExTM & Training Programmes- Over 25 events in a year
bringing together the decision-makers and the end-users inevery major city and industrial centre EverythingAboutWater Pavilions in National & InternationalEvents- Gateway for the Indian market to go International• Annual EverythingAboutWater EXPO： アジア最大の水関連イベントです• SemExTM & Training Programmes： 各主要都市・産業中心地の意思決定者やエンドユーザーと開催され、年に25回以上開催されます• EverythingAboutWater Pavilions in National & International Events： インド国外に進出するためのインド市場の入り口ですRecruitment & Training Recruitment activity - Extensive database of more than 20,000
water professionals
 Match-making between the companies & candidatesPlacements at some of the leading companies including VA
Tech Wabag, Degremont, Grundfos, Wipro, GE, Siemens, etc.
 On site & off site specialised training programs on watertechnologies• 20,000人以上の水専門家のデータベースを持ち、企業間のマッチングやグローバル企業への人材斡旋、水技術に関連するオンサイト・オフサイトでの研修プログラムを用意していますConsulting
 Dr H2O- Panel of experts to answer your queries
 Water Audits- Comprehensive study for cost savings andprocess improvements
 Consulting- For market study, detailed segment analysis,
entry strategy, partner identification and evaluation, etc.

• 水関連に関する質問に応えるウェブサイトの運営や、コスト削減やプロセス改善に関する包括的な研究を実施しています• また、業界研究、セグメント分析、パートナーの選定評価等の各種コンサルティングを実施していますOur Strengths
 Deep and wide understanding of the water domain Strong relationships in the water sector in trade, consulting,government and end-user sectors
 Indepth Knowledge Base on water created over eight years
 Fairly unique ability to provide market, technical, financialand management analysis on water industry and individualplayers
 High brand visibility• 我々には、水業界に関わる各プレイヤーとの強固な人脈と高いブランド力があり、創業以来蓄積してきた知識と深く広い理解力と独自の分析力がありますTHANK YOUand Look forward to see you inIndia soon …
H. Subramaniam
Email: subrah@eawater.com