WABAG sees West Asia projects hold steady amid conflict | Chennai News

Chennai: Chennai-headquartered VA Tech WABAG, a global water technology player, said its about $400 million West Asia project portfolio, comprising both construction and O&M contracts, remains largely unaffected by the ongoing conflict so far, while the crisis could open up fresh opportunities in post-war reconstruction and infrastructure spending. The company, which has a significant presence in the Gulf, noted that water infrastructure—particularly desalination and wastewater recycling—has become even more critical in the current environment. Countries in the region depend heavily on desalinated water for drinking and treated wastewater for industrial use and irrigation, given the absence of natural freshwater sources. Rajiv Mittal, chairman and managing director of the company, told TOI that construction and operations across key markets, including Saudi Arabia, Dubai, and other parts of the Gulf, have so far continued without disruption. The company has curtailed travel and ensured that personnel are stationed close to project sites, with necessary accommodation in place. Its operations and maintenance (O&M) business, where teams are deployed on-site to manage water assets, is also running normally. While the company has not witnessed any immediate negative impact, Mittal indicated that a prolonged conflict could, in fact, benefit the sector. Reports of desalination plants being targeted—two facilities have already been destroyed—point to potential demand for rebuilding and upgrading critical infrastructure. “Disrupting water supply is a strategic lever in any conflict, especially in a region that relies almost entirely on desalination,” he said. “This could translate into opportunities for companies like us in reconstruction and refurbishment.” With about $400 million worth of projects spanning both construction and O&M contracts in the region, the company is also optimistic about adding another $200 million to $250 million in orders in the near term, subject to improving conditions. “Earlier, we were largely a technology partner in the region. Today, we are a full-fledged solutions provider,” Mittal said, adding that the company has strengthened its presence over nearly four decades. Beyond the immediate crisis, the company remains bullish on the long-term prospects of West Asia, a key contributor to its topline. The region accounts for about 30% of overall revenue and nearly 60% of its international business. The region is undergoing a structural shift, with governments accelerating industrialisation and reducing dependence on oil. Policies promoting localisation—mandating local sourcing and capacity creation—are attracting investments and strengthening domestic economies. Emerging sectors such as data centres are gaining traction, driven by low power costs and a stable energy supply—factors that indirectly boost demand for water solutions.